Here's how it works. After one year of service with the health system eligible employees may receive:
- 3% of pay-based credits to your Cash Balance account
- 3% contribution of your eligible earnings to your 403(b) account (Benefit Group 1A receives 6% contribution)
- 2% employer matching contribution to your 403(b) account (that's if you contribute at least 6%)
That comes to 8% in employer contributions for Benefit Groups 1, 2 and 3 - and 11% for Group 1A! So what are you waiting for? Contact MetLife now and get money smart.
4 comments:
Since this is not a benefit enjoyed by all employees, it may be a good idea to specify that only non union employess will get the 3% match by the health system. The statement is misleading
That is correct! Employer contributions of 3% are for non union employees.
I have a few questions on 403b and 457b
1. If I maximize my tax deductible 403b contribution before year end, does the 2% match continue?
Right now I contribute more than 6%, but will reach the the 403b contribution limit of 18000 soon.
2. Does the payroll system automatically stop deducting contributions once the tax deductible contribution limit is reached
or do we need to change it manually in th system?
3. if I decide to contribute to 457b, how much can be put in the last 4 months of the year. Are loans available from 457b?
Also, what is the max loan amount or percentage available from a 403b account?
In response to G.Singh Sept. 1 at 9:09pm:
1. Yes, the match will continue, even after reaching the maximum IRS limit of $18,000.
2. Once you reach the tax deductible contribution limit, payroll automatically stops your contribution.
3. You can contribute up to 100% of your paycheck to the 457b plan, with elections being made the prior month. You cannot borrow against your 457b plan, but you can borrow up to 50% of your balance from your 403b plan.
Thank you for your interest.
Post a Comment