Maximize Your Contributions

Maximize Your Before‐Tax Contributions

Before we show you how to reach your before-tax maximum, keep in mind these basic rules for 2015 that apply to both the TDA and CRA accounts in the SCRP.

• Eligible earnings include your base salary, paid leave, and any summer supplemental pay you receive after becoming eligible for the plan, up to $265,000.
• If you are under age 50, you can make $18,000 in before-tax contributions to the CRA or TDA.
•  If you are age 50 by Dec. 31, 2015, you can make an additional $6,000 in before-tax contributions to the CRA and TDA. That means you may contribute a maximum of $24,000 to CRA and TDA combined.
• If you reach your maximum contribution during the year, you can continue to save with after-tax contributions. If you do, you may want to discontinue your after-tax contributions before January of the following year when your before-tax contributions automatically re-start.
• When determining your before-tax contribution, be aware that limits apply to all before-tax contributions you make during the calendar year. Be sure to take into consideration before-tax contributions made to a prior employer’s plan within the same calendar year, if applicable.

Example: Employee A

Employee A wants to maximize before-tax contributions and avoid making after-tax contributions. Here’s how it’s done:

Employee A elects to contribute 33 percent each pay period throughout the year in order to contribute the maximum allowed.

When Employee A’s contributions reach the $24,000 limit, they will automatically stop.