All contributions to the RPB Retirement Plan are on a pre-tax basis and reduce your taxable income. There are limits on each type of contribution, as well as a cap on the total contributions you can make each year. The sooner you can begin contributing—and the greater the amount you put in—the more likely it is that you will meet your financial goals for retirement.
Even if you got a late start, you may be eligible to make catch-up contributions based on your age. You can make contributions from your salary on a monthly, quarterly, semi-annual or annual basis. You decide how much you want to contribute and you can change the amount as often as you like.
Maximum Pension Plan Contribution Limits
There are two types of contributions that can be made to a 403(b) plan:
- Employer Contributions are made by an employer to the RPB and are in addition to a participant’s regular salary (and parsonage, if applicable).
- Elective Salary Deferral is a contribution made to the RPB as a pre-tax deduction from a participant’s pay based on a Salary Reduction Agreement the participant completes with the employer. Participants may change their elective salary deferral amount at any time, but the participant and employer must enter into a new Salary Reduction Agreement in each instance. If the participant should leave employment with the employer before the end of a plan year and a portion of the contribution was prepaid, the employer may request a refund of the unearned contribution amount.
IMPORTANT: Both employer contributions and elective salary deferrals have to be paid by the employer to the RPB because all contributions to the Plan must be made with pre-tax dollars.
The IRS places the following maximum limits on employer contributions and elective salary deferrals:
- Employer Contributions – For the 2018 calendar year, the maximum employer contribution is $55,000 or 100% of the participant’s includable salary, if the includable salary reported to the IRS is less than $55,000. (Includable salary is the participant’s salary excluding parsonage.) If an employer’s contribution exceeds the maximum contribution limit, the overage will go into the participant’s RPB Rabbi Trust Account.
- Elective Salary Deferrals – For the 2018 calendar year, a participant’s maximum elective salary deferral amount is $18,500, or 100% of the participant’s includable salary if the salary reported to the IRS is less than $18,500. For more information, please read the IRS announcement on 2018 pension plan contribution limits.
- Over 50 Catch-Up Provision – When participants reach 50 years of age or older, they can increase their elective salary deferral amount. Participants who are 50 years of age or older during the 2018 Plan Year may increase their elective salary deferral by $6,000 to a maximum of $24,500. The participant’s elective salary deferral cannot exceed their includable salary.
- Combined Limits – The combined contribution limit for the 2018 calendar year is $55,000. If the over 50 catch-up provision is utilized, the combined maximum contribution limit is increased to $61,000 ($55,000 plus a dollar for dollar increase for the over 50 catch-up amount). A contribution for a participant cannot exceed their includable salary.
There are no minimum pension contribution requirements.
Evaluation of Recommended Contribution Percentages
The RPB commissioned Summit Strategies Group, its independent investment consultant, to conduct an objective evaluation of our recommended contribution rates. Read the summary document, which includes Summit’s detailed report and other supporting documents: Evaluation of Recommended Contribution Percentages.
Rollovers to the RPB: Forms and Information
The RPB accepts rollover funds from other qualified 403(b) plans, 401(k) plans, IRAs and other tax-deferred plans–we cannot accept rollovers from Roth IRAs. Rollovers can be made by wire transfer or check. Rollover information is shown separately from other RPB assets on account statements and are subject to the same RPB rules and investment allocation choices as other RPB funds.
Money that is rolled over from non- URJ-affiliated congregations is not eligible for parsonage exclusion in retirement.
To verify that the funds are considered qualified retirement funds, please complete the appropriate RPB Rollover Transfer Form.