Tax-Sheltered Annuity Program

2009 Maximum Annual Limits

• $16,500 (up to virtually 100% of income*) plus
• $5,500 additional "catch-up" if you will be 50 or older at any time in 2009.

The limits may be indexed in $500 increments based on the Consumer Price Index. The IRS publishes the limits in the last quarter of the year for the following year.

*Remember you must allow for your Social Security taxes and any other deductions (insurance premiums, parking, ERA, etc.) from any given paycheck. Please contact your staff benefits office if you need help determining the maximum amount you can contribute per paycheck.

This table shows your contribution limits:

A special provision may allow you to contribute more than this amount:

• If you have 15 years or more of service with the UW, you may have an additional catch-up opportunity allowing you to contribute an additional $3,000 per year to a cumulative maximum of $15,000 over five or more years.
• This is a true catch-up opportunity available only to those who have not contributed the full amount in the past. The additional amount is permitted only if your TSA contributions averaged less than $5,000 per year over the course of your UW employment.
• Check with your campus staff benefits office to see if you qualify to contribute this additional amount.

Enroll in the UW TSA 403(b) Program

Please be aware that your TSA 403(b) limit is reduced dollar for dollar by contributions you make to these other voluntary retirement savings plans — 401(k), SIMPLE IRA, SIMPLE 401(k), salary reduction SEP IRAs, and Federal Thrift Savings.

Contributions to a 457 (deferred compensation) plan do NOT affect your TSA limit. If you would like more tax-deferral opportunities, you may also participate in the Wisconsin Deferred Compensation Program managed by the Department of Employee Trust Funds.

In addition to your TSA 403(b) and WDC 457 deferrals, you may also contribute the full amount to a traditional or Roth IRA — In 2009 the IRA limit is $5,000 plus an additional $1,000 if you are 50 or older at any time during the year. If you exceed certain income limits your traditional IRA may not be tax deductible and highly compensated individuals may not be eligible to contribute to a Roth. Please check with a tax professional.

Please see the Tax-Sheltered Annuity Home Page for additional information and links to our investment companies.

This document was last revised on January 6, 2009