The deadline for Delphi salaried employees to elect the disbursement option of their 2012 Annual Incentive Plan (AIP) payment is February 14th. Current Salaried Retirement Savings Program (SRSP) contribution rates (pre-tax, after-tax, Roth, Catch-up) will be automatically applied to the AIP payment unless employees change these rates.
Keep in mind, the IRS limit for pre-tax contributions can not exceed $17,500 for 2013 (or $23,000 if age 50 or older). After reaching the pre-tax threshold employees may still contribute to the SRSP. Pre-tax payroll contributions will automatically spill over as after-tax. Delphi will continue to match $0.50 for every dollar up to 7% of base salary as long as payroll contributions are maintained throughout the year.
As a reminder, salary employees receive retirement contributions to their SRSP of 4%. This retirement contribution is in addition to payroll contributions and Delphi’s company match. The total IRS limit for contributions to the SRSP, which include pre-tax and after-tax payroll contributions, Delphi company match, and retirement contributions is $51,000 (or $56,500 if age 50 or older) for 2013.
If you have questions on how the election of the AIP payout to the SRSP could impact your contributions for the remainder of 2013, or you want to maximize Delphi’s company match, contact Mainstay Capital Management toll-free at 1-866-444-6246 to speak with one of our Certified Financial PlannersTM.