The Office of Human Resources

How to Calculate 2021 Maximum 403(b) Supplemental Contribution for Exempt Employees

Explanation of Terms

  • Employee Basic: The amount you must contribute into your 403(b) plan — currently 5% of your annual salary — to be eligible for the university's matching contribution.
  • Employee Supplemental: The amount you wish to contribute into your 403(b) plan over and above your required 5% Employee Basic contribution.
  • Employer Basic: The amount the university contributes into your 403(b) plan — currently 8% (up to age 50) and 10% (age 50 and over) of your annual salary — if you make the required 5% Employee Basic contribution.

Calculating Your Contribution

To determine your Employee Supplemental (voluntary) contribution amount for 2021, if eligible, you must factor in your Employee Basic contribution (the percentage of your salary you contribute that makes you eligible to receive the university matching contribution) and the number of pay periods for which you will contribute.

Example 1

Exempt, 403(b)-eligible, 50-year-old with annual salary of $50,000 ($2,083.30 per semimonthly pay period), effective Jan. 1, 2021.

Annual Supplemental Contribution

  • $26,000 (maximum Employee Supplemental contribution allowed in 2021) minus your projected 5% Employee Basic contribution.

    • $50,000 ( your salary) x 5% (your projected Employee Basic contribution percentage) = $2,500.
    • $26,000 (maximum voluntary contribution) – $2,500 = $23,500 (your maximum Employee Supplemental contribution for 2021).
Supplemental Contribution per Pay Period

  • $23,500 divided by number of pay period contributions expected.

    • $23,500 / 24 (number of pay periods) = $979.16 (your maximum Employee Supplemental contribution per pay period for 2021).
Supplemental Contribution Percentage

  • Voluntary contribution dollar amount divided by per pay period earnings equals voluntary percentage.

    • $979.16 (voluntary contribution dollar amount) / $2,083.30 (your earnings per pay period) = 47% (your maximum Employee Supplemental contribution percentage for 2021).
Your Maximum Salary Contributions for 2021
  • 403(b) Employee Basic = 5%, which calculates to $2,500.
  • 403(b) Employee Supplemental = 47%, which calculates to $23,500.
  • 403(b) Employer Basic = 10% (automatic university matching contribution if you make the minimum 5% Employee Basic contribution), which calculates to $5,000.

Example 2

Exempt, 403(b)-eligible, 49-year-old with annual salary of $45,000 ($1,875 per semimonthly pay period), effective Jan. 1, 2021.

Annual Supplemental Contribution

  • $19,500 (maximum Employee Supplemental contribution allowed in 2020) minus your projected 5% Employee Basic contribution.

    • $45,000 ( your salary) x 5% (your projected Employee Basic contribution percentage) = $2,250.
    • $19,500 (maximum voluntary contribution) – $2,250 = $17,250 (your maximum Employee Supplemental contribution for 2021.
Supplemental Contribution per Pay Period

  • $17,250 divided by number of pay period contributions expected.

    • $17,250 / 24 (number of pay periods) = $718.75 (your maximum Employee Supplemental contribution per pay period for 2021).
Supplemental Contribution Percentage

  • Voluntary contribution dollar amount divided by per pay period earnings equals voluntary percentage.

    • $718.75 (voluntary contribution dollar amount) / $1,875 (your earnings per pay period) = 38% (your maximum Employee Supplemental contribution percentage for 2021).
Your Maximum Salary Contributions for 2021
  • 403(b) Employee Basic = 5%, which calculates to $2,250.
  • 403(b) Employee Supplemental = 38%, which calculates to $17,100.
  • 403(b) Employer Basic = 8% (automatic university matching contribution if you make the minimum 5% Employee Basic contribution), which calculates to $3,600.

Updating Your Contribution Amounts

You may change your contribution percentages and retirement provider election to both Fidelity and TIAA through either of the following:

The Brandeis Retirement Planning Website User Guide provides step-by-step screen shots starting on Page 8 for existing participants.

Using Workday

There are limit restrictions in place in Workday that will prevent an employee from contributing more than the IRS maximum amount allowed. Please note that Brandeis does not monitor individual's maximum contributions to your plan. You will be responsible for monitoring your annual contribution amounts, which are reflected on your pay slip.

You may seek assistance in determining you supplemental contribution amount from representatives at TIAA (800-842-2273), Fidelity (800-343-0860) or your tax adviser.