Financial housekeeping is kind of like regular housekeeping—probably not your favorite thing to do, but it feels good when it’s done. Take stock of your financial picture well before the end of the year and make adjustments while you still have time to maximize the tax benefits of UC's Retirement Savings Program.
One of the most important things you can do before December 31 is to double-check how much you have contributed to all your qualified retirement savings plans. This includes the UC 403(b), 457(b), and/or DC Plan accounts. If you worked for a different employer during 2017, include the contributions you made to your prior employer’s retirement savings plan(s) as well.
Here’s a breakdown of the limits:
If you think you’ll end up contributing less than the 2017 IRS limit, see whether you can contribute more by December 31. You’ll reduce your taxable income, so you may pay fewer taxes for 2017. Plus, you’ll boost your retirement savings.
If you exceed the IRS limit in 2017, you must submit a Return of Excess form before April 1, 2018. This will allow the plan(s) to reimburse you for your excess contributions, plus associated earnings.
Call Fidelity® Retirement Services at 1-866-682-7787.
If you have questions about your limits, tax treatment of over-contributions, or filing your income taxes, please consult a professional tax advisor.
Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.
The University of California intends to continue the benefits described here indefinitely; however, the benefits of all employees, retirees, and plan beneficiaries are subject to change or termination at the time of contract renewal or at any other time by the University or other governing authorities. If you belong to an exclusively represented bargaining unit, some of your benefits may differ from the ones described here.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
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