""
 
 

2017 retirement plan interest rates and IRS contribution limits

The TVA Retirement System has announced interest rates and IRS contribution limits for calendar year 2017.

Cash Balance Interest Rate

For employees with cash balance accounts, the interest crediting rates for 2017 will be five percent for employees hired on or after Jan. 1, 1996, and six percent for employees hired before Jan. 1, 1996.

Fixed Fund Interest Rate

For employees with Fixed Fund accounts, the interest crediting rate for 2017 will be five percent.

IRS contribution limits

Employees making salary deferrals to the 401(k) Plan (both pre-tax and Roth designated deferrals), may contribute up to $18,000 to the 401(k) Plan during 2017, which is unchanged from 2016. Employees age 50 or older at any time during 2017 may contribute up to an additional $6,000 to the 401(k) Plan during 2017.

There is also an overall contribution limit to the Retirement System’s plans for 2017 of $54,000 (increased from $53,000 for 2016). This overall limit includes the following types of contributions: salary deferral contributions to the 401(k) Plan (both pre-tax and Roth designated deferrals up to $18,000 as described above); TVA’s matching contributions to the 401(k) Plan, TVA’s automatic (non-elective) contributions to the 401(k) Plan, any after-tax contributions you elect to make to the 401(k) Plan, and and any after-tax contributions you elect to make to the system’s Fixed Fund or Variable Fund (if you were first hired prior to Jan. 1, 1996, and are eligible to contribute to the Fixed and Variable Funds).

Note: If you are age 50 or older and eligible to make catch-up contributions to the 401(k) Plan (up to $6,000 as described above), these contributions do not count toward the overall contribution limit of $54,000.

For answers to questions or for more information

Please call the TVA Retirement System at 865-632-2672, or send an email to retsvcs@tva.gov (listed as “Retirement System” in the Outlook address book).