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How To for employees: open a tax-deferred savings account

December 10, 2013 at 7:38 am

All employees of Beloit College are eligible to contribute to a tax-deferred savings account through payroll deduction. There are no age or service requirements to participate.  

Tax-deferred savings (sometimes called salary-reduction agreements or SRAs) allow you to save for retirement and reduce your taxable income. Funds deposited into these accounts continue to accumulate tax-free until you withdraw from them.

Annual contributions into tax-deferred savings accounts are subject to limits set by the Internal Revenue Code according to your age. You may increase, decrease, or stop your savings at any time during the year. 2014 annual contribution limits are $17,500 for individuals under age 50 and $23,000 for individuals who attain age 50 by the end of 2014.  Annual limits are generally subject to cost of living increases determined by the government and change over time.  Certain other limits may apply depending upon the retirement plan contributions made by Beloit College on your behalf.  If other limits apply, you will be notified about your personal 2014 maximum limits.

If you are already participating in a tax-deferred savings account, your 2013 election amount will remain in effect for 2014 unless you notify the Payroll Office to make a change.

If you would like to begin contributing to a tax-deferred account, please contact

Heather McLean (ext. 2628 or mcleanh@beloit.edu) or Gail Pateros (ext. 2298 or pateros@beloit.edu) for enrollment information and a payroll deduction form.  Contributions may begin at any time during the year.