2007 Deferral Limits
Beginning January 1, 2007 The Program’s annual deferral
limits will increase to the following amounts:
2006
2007
Regular deferral limit:
$15,000
$15,500
Age 50 plus deferral limit:
$20,000
$20,500
Catch-up deferral limit:
$30,000
$31,000
Participants can call the Service Center now and speak to an Account Executive
about increasing their deferral for next year. They can increase their deferral
up to the new regular deferral limit on the web site or the automated telephone
system after December 16th. Participants need to call our Service Center for Age 50
Plus or Catch-Up deferrals.
The potential results of a deferral increase may surprise you. A $1,000 annual
increase, made as an additional biweekly deferral of $38.46 for the next 20
years and earning an 8% annual return, could grow to over $49,000 for
retirement. Many employees would not miss the additional amount from their take
home pay now, but would enjoy these extra funds at retirement.
This is a hypothetical compounding example and is not intended to predict or
project the investment results of any specific investments. Investment return is
not guaranteed and will vary depending upon your investments and market
experience. Taxes and fees are not reflected in this example.