The IRS has released 403(b), 401(k) and IRA contribution limits for 2008:

• The 403(b) and 401(k) elective deferral limits remain unchanged at $15,500.
• The 403(b) and 401(k) basic limits, the Section 415 limit, have increased to $46,000, up $1,000 from 2007. The maximum contribution is the lesser of 100% of compensation or this adjusted limit.
• The 403(b) and 401(k) age-50 catch-up contribution limit remains unchanged at $5,000, raising the limit to $20,500 for those who are 50 years or older.
• The 403(b) 15-or-more-years-of-paid-service allowance is $3,000. This provision allows participants who have 15 or more years of denominational service to increase their annual elective deferrals to $18,500 if younger than 50 and to $23,500 if age 50 or older. (This contribution has other limits, including a $15,000 lifetime cap, so participants may only take advantage of this provision if they meet certain additional requirements.)

Both the age-50 catch-up contribution and the 15-or-more-years-of-service provisions limit the sum of Roth elective deferral plus "regular" elective deferral contributions as made in the plan.

• Traditional and Roth IRA limits have been raised to $5,000, up $1,000 from the 2007 limit.
• The IRA age-50 catch-up contribution limit remains unchanged at $1,000.

Learn more about Future Contribution Limits.

For more information about starting or enhancing your retirement plan, contact a Customer Relations specialist at 1-888-98-GUIDE (1-888-984-8433). To adjust your withholding, you may also download a Salary Reduction Agreement and return it to your employer’s human resources office, or contact your HR office for a copy.