February 24, 2012
Save extra money for retirement through payroll deduction
Whether you’re just starting out, in mid-career or nearing retirement, there are steps you should be taking to plan for retirement. Social Security and your mandatory retirement plan will cover only part of your retirement expenses; personal savings are needed to cover the rest.
K-State’s Voluntary Retirement Savings Plan offers benefits-eligible employees the opportunity to invest through payroll deduction with a retirement provider approved by the Kansas Board of Regents. The 2012 annual base limit is $17,000 as established by the IRS, an additional $5,500 for employees who are age 50 or above, and employees with at least 15 years of service at K-State may qualify for an additional catch-up amount up to $3,000.
Contributions may be pre-tax, after tax, or a combination of pre-tax and after tax to the maximum allowed by the IRS.
The Kansas Deferred Compensation Program is a supplemental retirement savings option which is administered by ING for all State of Kansas employees through payroll deduction. The annual contribution limits are established by the IRS, currently $17,000. Employees who are age 50 or above may qualify for a higher annual limit of an additional $5,500. Contributions may only be made on a pre-tax basis.
Generally the Voluntary Retirement Savings Plan is the best option for K-State employees, but for those employees who want to maximize their retirement savings, both plans may be utilized at the same time. Contact the Division of Human Resources, firstname.lastname@example.org, for additional information.