REVISED: 12/30/2024
TO: All Eligible Regular-Status Employees that wish to elect/maintain the Maximum Allowable Contribution in the Calendar Year
On November 1, 2024, the Internal Revenue Service (IRS) announced cost-of-living adjustments increasing the maximum dollar contribution for pension plans and other retirement-related plans for 2025. Effective January 1, 2025, the maximum employee contribution limits will increase as follows: (see Table below):
Supplemental Retirement Annuity (SRA) Maximums– Effective January 1, 2025
| 2025 Maximum | 2024 Maximum | |
| Employee contributions (pre-tax) | $23,500 ($979.17 per pay period) | $ 23,000 ($958.34 per pay period) |
| Additional “catch-up” contribution for individuals 50 years or older by December 31 | $7,500 (Max TOTAL contribution $31,000) ($1,291.67 per pay period) | $7,500 for TOTAL contribution of $30,500 ($1,270.84 per pay period) |
| Increased "catch-up" contribution for individuals aged 60, 61, 62, and 63 by December 31, 2025 | $11,250 (Max TOTAL contribution $34,750 ($1,291.67 per pay period) | N/A |
If you wish to adjust your maximum contribution from the first pay period of the tax year 2025 (December 16-31, 2024 – pay day: January 7, 2025), please complete the Agreement for Salary Reduction Form (Form B-6) and submit via Employee Self-Service eUpload link no later than December 22, 2024.
To help our employees calculate their maximum contribution levels (per pay period) we are excited to provide our SRA Maximum Allowable Contribution Calculator (found in the Benefit Spotlight Series: Retirement Accounts). This tool may be used at any point in the year and adjusts the contribution amount based on how many pay periods left in the tax year.
RCUH does NOT automatically adjust your SRA pre-tax contributions every year. Therefore, if you have previously elected the maximum allowable contributions, you must recalculate and submit a new form. If you have any questions, please contact RCUH Human Resource Employee Benefits section at:
Email: [email protected]
Phone: (808) 956-2326 or (808) 956-6979
Relevant Links:
IRS-2024-80 (IRS Announcement)
RCUH Policy 3.560 Retirement Plans
Benefits Spotlight Series: Retirement Accounts (Including: information on the two types of RCUH retirement accounts, SRA Maximum Allowable Calculator, and Frequently Asked Questions)
