403(b) and 457 Savings Programs

You have access to voluntary programs that allow you to save extra money for retirement, on top of your primary retirement plan. The 403(b) and 457 savings programs allow you to

  • save up to $18,000 annually for retirement in 2017; $18,500 in 2018
    • if you are 50 or older, you may save an additional $6,000 ($24,000 in 2017 and $24,500 in 2018 total)
    • if you have at least 15 years of service, you may also be eligible for an additional $3,000 catch-up contribution per year to a 403(b) plan, not to exceed $15,000 in a lifetime; contact your vendor directly to determine eligibility
  • get a retirement cash match from UVA of up to 50%, to a monthly maximum of $40 (if you save $80 monthly, you receive the maximum $40 match)
  • save in both plans and contribute the maximum to both

403(b) Plan

  • Pre-tax and Roth after-tax deferrals
  • Vendors are Fidelity and/or TIAA
  • Changes to your vendor and/or contribution amount will always take effect the next pay period
  • Change your contribution amount through UVA Employee Self-Service (UVA will not make retroactive changes to excess contributions or deductions)

Enroll in 403(b)

  • Use the benefit enrollments page in employee self-service, following these step-by-step instructions
  • Work with your vendor, TIAA and/or Fidelity, to make investment elections and other decisions
  • If you make no specific fund choice, you will be placed into the default program

Commonwealth 457 Plan

  • Pre-tax and Roth after-tax deferrals
  • Vendor is ICMA-RC, a retirement service for public sector employers and employees
  • One-time deferral option available, paper submission only
  • Change your 457 contribution amount via ICMA-RC online account or by phone (UVA will not make retroactive changes to excess contributions or deductions)

Enroll in 457

  • Enroll online through ICMA-RC and create a user ID and password
  • Make investment decisions online at ICMA-RC Plan’s Investment Elections
  • Call ICMA-RC to enroll and to discuss investment choices on the Plan Information Line (UVA will not make retroactive changes to excess contributions or deductions)

Pre-tax 403(b) vs. After-tax Roth 403(b)

Pre-tax

  • The traditional 403(b) is pre-tax, meaning you invest your money before you pay taxes on your gross income
  • When you withdraw the money during retirement, you will pay taxes at the rate in place at that time

Roth

  • Roth contributions are after-tax (pay taxes on your money, then invest what remains)
  • When you withdraw money at retirement, your cash is not taxed; you’ve paid your tax already
  • You are not taxed later on all of the investment earnings your Roth account has made for you, beyond the contributions you made on which you paid tax up-front (there may be exceptions)
  • The annual limits on contributions are the same, regardless of whether the contributions are pre-tax or after-tax; for instance, you can make all of your future 403(b) contributions—with Fidelity and/or TIAA—Roth contributions (after-tax)

ORP and Non-Hybrid VRS Participants

  • For newly hired or rehired salaried state employees, $40 per month of salary will automatically go to a default investment plan through the Fidelity 403(b) Plan—unless a new employee intentionally enrolls in a different 403(b) or 457 plan within 60 days of hire
  • Automatic enrollment triggers the monthly 50% UVA match of $20
  • Employees may decline to set aside $40 per month in retirement—but by doing so, they give up the $20 UVA monthly match

Cash Match Requirements for VRS Hybrid Retirement Members

Employees with VRS Hybrid Retirement Plans and a 403(b) plan get the UVA cash match only if they put the full 4% optional voluntary contribution into their Hybrid Retirement Plan first

The chart below shows the long-term advantage of saving up to 4% of your income in a deferred savings plan

403PlanChart


Choose TIAA, Fidelity, and ICMA-RC

TIAA: 800.842.2252

Fidelity: 800.343.0860

ICMA-RC: 877.327.5261


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