Savings Plan Limits
2008 Savings Contribution Limits
Part of planning for retirement includes contributing to one of Northrop Grumman's savings plans. Below are the 2008 savings plan contribution limits as defined by the IRS. The following chart contains the maximum contribution rates (the percentage of your pay that you can contribute) to your plan and the date in which you will need changes to your contribution elections to be effective with your first paycheck in January.
| 2008 IRS Savings Plan Contribution Rates |
| |
If you are Under Age 50 |
If you are age 50 or Older* |
| Your Tax-Deferred Contribution Limit |
Maximum of $15,500 |
Additional $5,000 in catch-up contributions, for a maximum of up to $20,500 |
| Limit on total contributions (your tax-deferred contributions plus Northrop Grumman's contributions and/or matching contributions |
100% of annual pay or $46,000, whichever is less |
100% of annual pay or $51,000 ($46,000 + $5,000 in catch-up contributions), whichever is less |
*You must be at least 50 years old by the end of 2008 to be eligible to make catch-up contributions.
Note: In 2008, the total annual amount of eligible compensation on which your savings plan contributions may be based is the first $230,000 of a person's earnings. Pay about this limit cannot be deferred into the plan.
| Plan |
Plan Limits |
Date to change contribution rate for first paycheck in January |
| Northrop Grumman Savings Plan |
1% - 75% for non-HCEs |
12/21 - 12/26 |
| Financial Security & Savings Program |
1% - 75% for non-HCEs |
12/21 - 12/26 |
| Newport News Union |
1% - 30% |
12/24 - 12/28 |