Contributions
By contributing to your JRB account, you reduce your taxes, while saving and investing for a financially secure retirement.
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Think of Yourself as a Long-Term Investor Retirement is the most expensive purchase you’ll make in your lifetime so it’s crucial that you save enough to afford the 20-30 years you’ll likely spend retired. Only you can do it. A bank won’t provide you a loan to pay for retirement. You don’t want to burden your children with this financial responsibility. And, you can’t generate the savings you’ll need in the few years before you retire. Most of us need our entire working lives to build financial security in retirement. |
Speak to your payroll administrator about setting up an automatic salary reduction contribution or increasing the contribution to your JRB account. You decide how much you want to contribute, up to federal maximums (see below), and you can change the amount as often as you like. Employers may also make contributions on your behalf.
If you are 50+, you are eligible to make “catch-up” contributions. Taking advantage of these additional contributions can help you maximize the value of your retirement account.
The JRB sends you a confirmation for each contribution made to your account.
Types of Contributions
The more you contribute, the more quickly the savings in your retirement account will grow. Since these contributions are made on a pre-tax basis, they also reduce your taxable income. In addition, your earnings grow tax-deferred; you don’t pay taxes until you withdraw your savings in retirement. At that time, you will likely be in a lower tax bracket.
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The Miracle of Compounding Compounding is one of the most powerful concepts in personal finance. The basic principle is simple. Compounding is the result of the automatic reinvesting of the interest and dividends earned on the contributions to your JRB retirement account. For example, if you earn 5% interest annually on $1,000, your account grows by $50 to $1,050 after a year. If you earn 5% the following year, your $1,050 grows by $52.50 and is now worth $1,102.50. Compounding has its greatest effect over long periods of time. Learn more about compounding. |
Salary Reduction Contribution
You can elect to make a contribution from your salary on a pre-tax basis. The election is made through a salary reduction agreement (see sample) with your employer. The contribution should be remitted to the JRB by your employer within 15 days following the end of the month in which the contribution is made. The salary reduction contribution limit for 2024 is $23,000.
Age 50 “Catch-Up” Contribution
You may make additional “catch-up” contributions beginning in the year you reach age 50. The “catch-up” contribution limit for 2024 is $7,500, for a total salary reduction contribution of $30,500.
Employer Contribution
Your employer may make contributions on your behalf directly to the JRB based on your employer’s retirement program or your employment agreement. The maximum employer and employee contribution limit for 2024 is $69,000, $76,500 if you are over age-50.
Rollovers
You can roll over some or all of your savings from other pre-tax retirement accounts into your JRB account on a tax-free basis. Rollovers are permitted from other 403(b), 401(k), and Traditional IRA accounts. Consolidating your retirement accounts makes it easier to manage your investments.
Contributions from Self-Employed Clergy
If you are a rabbi or cantor receiving a Form 1099 for ministerial services, you can contribute directly to your JRB account. Contact the JRB to get started.
Post-Employment Contributions
Your employer may make additional contributions to your JRB account for up to 5 years after your employment ends.
Retirement Plan Limits | 2024 |
Salary Reduction Contributions | $23,000 |
Age-50 Catch-up Contributions | $7,500 |
Annual Maximum Employee and Employer Contribution | $69,000 |
Annual Maximum Employee and Employer Contribution, age-50 or older | $76,500 |