Voluntary Additional Contributions
If you are a WRS participant who is currently employed with a WRS
employer you can make voluntary additional contributions to your
WRS account. All active WRS employees are eligible to make voluntary
after-tax contributions to the WRS. If you have made voluntary additional
contributions you can use your additional account to buy
any creditable service that you are eligible to purchase.
Note: Prior to January 1, 2009, employees of certain educational
institutions could make tax-deferred additional contributions to
their WRS account under Section 403(b) of the Internal Revenue Code.
However, beginning January 1, 2009, the Department can no longer
accept tax-deferred additional contributions.
All voluntary additional contributions earn the effective
interest rates. If you participate in the variable
program, 50% of your additional contributions will be allocated
to your variable account. If you do not participate in the variable
program, your additional contributions will earn the annual core
effective rates.
The amount of additional contributions you can make each year is
limited by Federal tax laws. The total contributions in any calendar
year that apply to your annual limit cannot exceed 100% of your
total gross compensation from your WRS employer for that calendar
year or $45,000, whichever is less. This amount normally increases
annually; the $45,000 limit applies to contributions made in 2007.
The other WRS contributions that apply toward the annual limit are:
- Employee required contributions to the WRS plus a matching amount of employer required
contributions;
- All Benefit Adjustment Contributions actually paid by
you;
- Voluntary after-tax employee contributions and employer additional
contributions;
A worksheet is available
on which you can calculate your maximum additional contributions.
For more detailed information:
|
