Contribution Limits

How Much Salary May I Defer?

You decide how much you want to invest. You may instruct your employer to defer as little as $25 per month. The maximum amount you may defer is 100% of includible compensation but not more than the following annual maximum:

Year	Annual Maximum
2002	$11,000
2003	$12,000
2004	$13,000
2005	$14,000
2006	$15,000
2007	$15,500
2008	$15,500
2009	$16,500

Retirement Catch-up Provision

The MDCPT, under Section 457 of the Internal Revenue Code, allows participants approaching retirement to defer more than the normal annual deferral limit in order to “catch-up” past deferrals not previously utilized.

Which Participants are eligible for the retirement “Catch Up” Provision?

Participants who did not contribute their maximum deferral amount in previous years beginning with 1979, and were eligible to participate in a Section 457 deferred compensation program, may be able to use the retirement “catch-up” provision.

Contribution limits under the “retirement catch-up” are as follows:

Year	Annual Maximum
2002	$22,000
2003	$24,000
2004	$26,000
2005	$28,000
2006	$30,000
2007	$31,000
2008	$31,000
2009	$33,000

When can I use the retirement catch-up provision?

You may use the catch-up provision during any or all of the three taxable years prior to the year in which you become eligible for retirement benefits. This excludes the calendar year in which you retire or separate from service. Under federal tax laws, you may use this provision one time in your lifetime.

How do I determine the retirement amount I am able to defer under the retirement Catch-up provision?

Contact the MDCPT office for the eligibility paperwork. You complete the front side of the form, and forward the salary confirmation form to your payroll office for completion. They should then forward the completed documentation to the MDCPT office. You will receive a letter from the Plan notifying you of your maximum “catch-up” amount and asking you to complete a Participation Agreement to defer an amount, up to the qualified amount.

50+ Catch-up
Participants who are at least age 50 can contribute an additional amount over their normal maximum limit as follows:

Year	Annual Maximum
2002	$1,000
2003	$2,000
2004	$3,000
2005	$4,000
2006	$5,000
2007	$5,000
2008	$5,000
2009	$5,500

Third Party Administration services provided by and securities distributed through Systematized Benefits Administrators, Inc. (SBA).