When you participate in the Retirement Investors' Club (RIC) 403b Program, pretax contributions (in the amount you choose) are automatically made to your 403b account through salary reduction. Deductions from your paycheck are made before state and federal income tax.
The number of deductions taken per year, as well as the number of payroll changes allowed in a year, is established by your employer. Ask your employer if your plan also allows post-tax Roth contributions to a 403b Roth account.
Back to topContribution Limits
The minimum amount you must contribute to participate in the 403b is established by your employer. The IRS 403b maximum contribution limits are declared annually. All pretax contributions and earnings stay tax deferred until you take the money out as income anytime after terminating from this employer.
Beginning in 2026, a new federal law will take effect which will change how higher-earners age 50 and over make contributions to their 403b plans.
Here's how the new law will work:
- Beginning on January 1, 2026, workers who are 50 or older who earned more than $150,000 in OASDI wages in the prior year will need to make any contributions over the regular limit on a Roth basis, excluding contributions made using the 15-year catch-up.
Your employer will monitor contributions for those impacted by this requirement and will change contributions from pretax to Roth as needed. If you are affected by this change and do not wish to contribute on a Roth basis once your contributions reach the regular limit, please contact your employer and request that your contributions stop for the remainder of the calendar year.
Back to topSalary Reduction Options
If you are paid more than once per month, ask your employer if you have the option to have your total monthly deduction taken from your 1st paycheck of the month (12 deductions/year), the 2nd paycheck of the month (12 deductions/year), or equally divided between the 1st and 2nd paycheck each month (24 paychecks/year).
Back to topChanges to Salary Reduction Amount
If you wish to change your salary reduction amount, ask your employer how often changes are allowed. To change your salary reduction, please complete the RIC Salary Reduction Form.
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