 MSRS is pleased to announce the reduction of investment fees in the Minnesota Deferred Compensation 457(b) Plan (MNDCP) and the Health Care Savings Plan (HCSP).
Fees in three investment options in these plans will decrease at the end of October 2024.
Learn More
Section 109 of the SECURE Act 2.0 provides higher catch-up limits
for employer sponsored retirement plan participants ages 60-63
The Minnesota Deferred Compensation 457(b) Plan (MNDCP)
will adopt this provision effective January 1, 2025
|
About Catch-Up Contributions
Currently, retirement plan participants turning age 50 and over in the calendar year can contribute an additional $7,500 to their retirement plan account.
In 2024, the contribution limit is $23,000 and the age 50 and over catch-up contribution is $7,500. This means an active plan participant age 50 and over can contribute a total of $30,500.
Effective January 1, 2025, retirement plan participants turning ages 60, 61, 62 or 63 in the calendar year can contribute an additional $11,250 to their retirement plan account.
Building off the example above, assuming the same limits for 2025, an active plan participant age 60-63 can contribute an additional $11,250 for a total of $34,250 in 2025.
Employer Responsibilities
Payroll offices will need to be aware of and allow employees to contribute the additional age 60-63 catch-up contribution amounts each year.
Contribution Limit Monitoring
The MSRS Payroll team will continue to monitor contribution limits and notify employer payroll departments near the end of each calendar year of any employee who exceeds the limits.
For More Information
Contact your dedicated MSRS Representative or the MSRS Payroll Support team.
Visit SECURE 2.0 on the MSRS Employer website - Provisions Effective January 1, 2025.
|
