Samantha Joseph No Comments

2025 CIRS IRS Limits and Informational items for Employers

We are providing informational items for the 2025 calendar year related to the CIRS Plans:

2025 IRS Compensation Limits

  • The IRS sets annual limits on the salary that can be used by qualified pension plans such as the CIRS Pension Plan. These limits are applied on a plan year basis (July 1 – June 30).  The CIRS Pension Plan already takes these limits into account for all required purposes (benefit amounts, employer contributions, etc.).  However, you as the employer, must be aware of these limits as they apply to the employee contributions for Tier II Members under the CIRS Pension Plan.  The July 1, 2024 to June 30, 2025 compensation limit is $345,000 which means that the maximum Tier II employee pension contribution is $10,350 for the 2024-2025 Plan Year.  These amounts will increase to $350,000 and $10,500 for the 2025-2026 Plan Year.

 

2025 IRS Pre-Tax Contribution Limits

  • The IRS sets annual limits on the amount of pre-tax contributions employees can make to a 401(k) plan.  These limits are applicable on a calendar year basis (January 1 – December 31).  The 2025 limit for regular 401(k) pre-tax deferrals is $23,500.

 

  • NEW Effective 1/1/2025, the law has changed in how catchup limits are structured.  Instead of one flat dollar amount applicable to everyone over age 50, the law now allows for those ages 60-63 to contribute a higher amount.

 

  • The 2025 catchup limits are:
    • Ages 50-59 by 12/31/2025 – $7,500
    • Ages 60-63 by 12/31/2025 – $11,250
    • Ages 64+ by 12/31/2025 – $7,500

2025 Employee Contribution Catch-up Form

  • Employee contribution elections (pre and post-tax) to the CIRS 401(k) Savings Plan must be made by Members through Voya.  However, if Members wish to elect catch-up contributions, they must complete the attached Catch-up Form and submit to you (the employer).  Catch-up contributions are additional pre-tax contributions that Members who will be age 50 or older by the last day of the calendar year can make in addition to the IRS regular pre-tax contributions.

If you have any questions regarding the CIRS Plans, please feel free to call CIRS at 212-674-0101 and ask to speak to a Member Services Representative.

justin No Comments

Your Form 1099-R

The 1099-R is a tax form used for reporting retirement plan distributions.  If you received a distribution of $10 or more from the CIRS 401(k) Savings Plan or the CIRS Pension Plan, a Form 1099-R will be generated and sent to you by the end of January.

Your 1099-R for the CIRS 401(k) Savings Plan will come from State Street Retiree Services. If you have not received this tax form by mid-February, you can download an electronic copy by signing in to your account at cirs.voya.com.  You can also request that a duplicate copy be mailed to you by calling the CIRS Service Center at 1-866-719-2477.

Your 1099-R for the CIRS Pension Plan will come from Transamerica Retirement Solutions.  If you have not received this tax form by mid-February, you must request that a duplicate copy be mailed to you by calling Transamerica at 1-888-976-8196.

For guidance on how to report the information from the 1099R Forms on your tax return, please consult your tax advisor.

Sandra Barros No Comments

Target Date Funds (TDFs) are coming to your 401(k) Savings Plan

Effective December 2, 2017, the State Street Target Retirement Funds were added to the CIRS 401(k) Savings Plan’s investment line-up.

Each State Street Target Retirement fund is a well-diversified, professionally managed, automatic investment fund option designed to prepare its investors for retirement in a specified year in the future. Each fund has a date in its name—the fund’s target date—that is the approximate retirement year when withdrawals begin.  For more information on TDFs, click here.

You can transfer your existing balance and/or direct future contributions into any combination of these funds:

Cash Equivalent

  • Stable Value Fund

Bond Fund

  • Bond Market Index

Stock Funds

  • S&P 500 Index
  • S&P 400 Index
  • Russell 2000 Index
  • International EAFE Index
  • Emerging Markets Index

Target Retirement Date

  • State Street Target Retirement 2020 Fund
  • State Street Target Retirement 2025 Fund
  • State Street Target Retirement 2030 Fund
  • State Street Target Retirement 2035 Fund
  • State Street Target Retirement 2040 Fund
  • State Street Target Retirement 2045 Fund
  • State Street Target Retirement 2050 Fund
  • State Street Target Retirement 2055 Fund
  • State Street Target Retirement 2060 Fund
  • State Street Target Retirement Fund

For more information on any of these funds, including overviews, details on strategy and holdings, and recent performance data, please visit the fund reports page.

You can change your investment elections at anytime by logging onto your account at cirs.voya.com or calling the CIRS Service Center at 1-866-719-2477 from 8AM – 8PM Monday – Friday (EST).

In addition, you also have the option of opening a Self-Directed Brokerage Account (SDBA) with TD Ameritrade.  You can invest in thousands of mutual funds and hundreds of Exchange Traded Funds (ETFs).  There is a $35 annual account maintenance fee (plus applicable transaction fees) for this service.