The standard savings rate for an OregonSaves account is 5% of your gross pay, deducted on an after-tax basis. Standard choices also include a 1% annual increase in savings up to 10%, so if you start out at 5%, next year your savings rate will increase to 6%. You can change your savings rate at any time to as little as 1% or as much as you want, within IRS limits.1 You can also choose not to have your savings rate increase in any year.
To make a change to your contribution rate, log on to your account and click on the “Adjust Contribution Rate” option on the left hand menu. We’ll walk you through it step by step.
OregonSaves’ standard account is a Roth IRA, and you must contribute less than the annual Roth IRA contribution limits set by the federal government. Current limits are $5,500 per year for savers under age 50 and $6,500 for savers age 50 and older. These limits may change in future years. To determine how much money you can contribute into your retirement account you must figure out your Modified Adjusted Gross Income, or MAGI. To figure out this amount, check out the IRS Publication 590-A. Chapter 2 has a helpful worksheet to guide you: Worksheet 2-1 “Modified Adjusted Gross Income for Roth IRA Purposes”. You are encouraged to consult with your financial or tax advisor to assist with this determination.
Once you know your MAGI, you can figure out how much money you can potentially contribute to your retirement account. Contribution limits vary based on age and tax filing status. Please read the below scenarios to determine which applies to you:
I make less than $118,000.
I make more than $118,000, but less than $133,000.
Together, we make less than $186,000.
Together, we make more than $186,000, but less than $196,000.
You cannot contribute the full contribution limit.
I make less than $10,000.