403(b) and 457 Savings Programs
The University of Virginia offers supplemental retirement programs that allow employees to defer income and invest for the future. The 403(b) plans are available through TIAA and Fidelity Investments and the Commonwealth Deferred Compensation 457(b) plan is offered through ICMA-RC.
The 2016 IRS maximum contribution is $18,000. If you are 50 years or older you may defer $24,000. Employees who have been employed with the University for at least 15 consecutive years may be eligible for an additional catch-up of up to $3,000. Employees may participate in both the 403(b) and Commonwealth 457(b) and can contribute the maximum to both.
If you participate in the Virginia Retirement System, the Optional Retirement Plan or the Medical Center Retirement Plan, you will receive an employer-paid match to employee contributions for tax-deferred savings programs.
|Cash Match Plan Summary|
|Effective September 30, 2012||Hired prior to September 30, 2002||Hired on or after September 30, 2002|
|Employee Contribution||$80 per month||4% of salary|
|Employer Maximum Cash Match||$40 per month||2% of salary|
Pre-tax and Roth after-tax deferrals
Vendors are Fidelity and/or TIAA
Changes can be made next available pay period
One time deferral option available
Commonwealth 457 Plan
Pre-tax and Roth after-tax deferrals
Vendor is ICMA-RC
Elections/changes must be done by the 15th of the month prior to the change
One time deferral option available paper submission only
How to Enroll in a 403(b) with Fidelity or TIAA
Enroll in the 403(b) (formerly known as Tax Deferred Savings Plan) using Knowledge Link You can chose your deferral amount and elect either Fidelity or TIAA as your vendor.
Once enrolled, you will want to work with the vendor, TIAA or Fidelity, to make your investment elections.
How to Enroll in the Commonwealth 457 Plan with ICMA-RC
Enroll online through ICMA-RC and create a Initial User ID and Password; Or by phone, 1-VRS-DC-PLAN1 (1-877-327-5261), available weekdays 8:30 a.m. - 9:00 p.m.
Once enrolled, you will work with ICMA-RC to make your investment elections. Call the Plan Information Line at 1-877-327-5261 or see ICMA-RC Plan’s Investment Elections for more information.
How to Change your Deferral Amount to your 403(b) or 457 Plan
403(b) (formerly known as Tax Deferred Savings Plan) - can be changed any time in accordance with payroll using Knowledge Link
ICMA-RC - can be changed quarterly online through ICMA-RC; Or by phone, 1-VRS-DC-PLAN1 (1-877-327-5261)
Difference between 403 (b) and Roth 403(b)
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 contributions differ from traditional “pre-tax” 403(b) contributions in that Roth contributions are “after-tax.” This means you invest money in the Roth out of your net income, after you have already paid taxes out of your paycheck, unlike the other retirement options we offer. You don’t get a tax savings on your contributions currently, but when you are eligible to take distributions from your Roth account (presumably when you are retired) the money is not taxable, including all of the accumulated earnings on the Roth contributions (some qualifications apply. See details for further information).
You have the option to designate all or a portion of your future 403(b) contributions, with Fidelity and/or TIAA, as Roth contributions, or designate a new contribution amount separate from your existing retirement portfolio. The 2015 annual limits on contributions are the same, regardless of whether the contributions are on a pre-tax or a post-tax basis: a maximum of $18,000 or $24,000 for someone age 50 and over. However, the impact on your taxes and on your paycheck will differ depending on whether you contribute to retirement pre-tax or post-tax.
403(b) and 457 Plan Resources
|Customer Service||Schedule an Appointment||Fund Performance|
|TIAA||1.800.842.2252||Meet a Representative||403(b) 401(a)|
|Fidelity||1.800.343.0860||Meet a Representative||403(b) 401(a)|
|ICMA-RC||1.877.327.5261||Meet a Representative||457|
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