Special Notice Regarding Your Tax-Sheltered Annuity

Participation in another employer's plan(s) could affect the contribution limitations that must be satisfied with respect to your tax-sheltered annuity. It is your responsibility to ensure that the contribution limitations are not exceeded when combined with certain other employer's retirement programs.

Elective Deferrals

In general, all elective/voluntary retirement program contributions that you elect to make on a pre-tax basis are limited to $16,500* for calendar year 2009. These contributions include your elected contributions to the University of Kansas Medical Center Voluntary Plan, plus any contributions to another employer's 401(k) plan, other tax-sheltered annuity, or salary reduction simplified employee pension plan. These contributions do not include contributions to the University of Kansas Medical Center Mandatory Plan or the Kansas Public Employees Retirement System (KPERS).

If you are also participating in the State of Kansas Deferred Compensation Plan, your pre-tax deferred compensation contributions are limited to $16,500* for calendar year 2009 under Internal Revenue Code Section 457.

Employer Contributions

The other contribution limitation that may be affected by another employer's plan(s) is the limit on "annual additions" to the plan(s). You may have heard this referred to as the Internal Revenue Code Section 415 limits. In general, the amount of contributions to your tax-sheltered annuity is compared to your compensation for the year. For this purpose, compensation and retirement plan contributions from employment outside the University may have to be aggregated.

If you feel that the above limitations may apply to you, you should consult with your tax advisor. Violation of the above limitations may result in current taxable income to you and possibly taxation of your entire annuity account.

If you have any questions regarding the University of Kansas Medical Center voluntary plan, please contact Janet Claas, ext. 85263.

* These amounts may be higher depending on eligibility for applicable catch-up provisions.

Contact:

Please feel free to contact KUMC Human Resources, 913-588-5087 with any questions. The Wichita School of Medicine Campus contact is Tracy Clarke, (316) 293-1802.