More DCP savings in 2024
The IRS limits for retirement savings programs like DCP have increased for 2024.
Beginning Jan. 1, all DCP participants under age 50 can contribute up to $23,000 per year. These limits apply to Roth and pretax contributions. This means whether you contribute to DCP Roth, pretax or both options, the combined totals must fall within IRS annual limits for the DCP 457(b) program.
The Washington Deferred Compensation Program, or DCP, is a terrific way to save for retirement. If you are already a DCP participant, now’s a great time to consider increasing your contributions. If you are not a participant and your employer offers DCP, consider signing up. Even a minimum monthly contribution of 1% can add up to big savings over time. Depending on your employer’s payroll, it can take up to 30 days for your account changes to go into effect. So, for the new year, you might want to start your changes now!
If you are 50 or older, your DCP savings can increase even more with special catch-up options. Starting Jan. 1, you can contribute up to $30,500 per year.
Save more with DCP
If you put $200 a month into your DCP account, your balance could grow to $201,908 in 30 years. The amount you gain will be small at first but get larger over time.
Here are the gains for a monthly $200 deposit at a 6% rate of return:
- $8,000 of additional earnings (10 years)
- $44,000 of additional earnings (20 years)
- $130,000 of additional earnings (30 years)
Next steps
- Change your contribution online through your DCP account
- Check out the DCP information page
- New to DCP? Enroll now
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The Office of the State Actuary prepared this example to assist DRS with developing a general educational resource.
