The University’s supplemental retirement plans are available to all University employees, regardless of FTE and eligibility for other University benefits. Employees may make pre-tax and/or after-tax Roth contributions to either or both supplemental retirement plans up to the IRS maximum limits.
A comparison of the plans is featured below. Information about each of the University’s plans is also included in the Retirement Planning Guide.
These accounts are not traditional savings accounts! There are strict rules governing the withdrawal of funds. You should only defer money into one of these accounts if you intend to save for retirement.
Comparison of the Plans:
403(b) Plan
Eligible to Make Contributions
All employees receiving pay through the University’s payroll system. The University provides an annual Universal Availability Notice to all employees to notify them of their ability to make contributions.
Maximum Contribution Amounts
- The maximum amount employees may contribute to these plans is set annually by the IRS.
- In 2024, employees may contribute up to $23,000 to each plan.
- Employees who are age 50 or older may contribute an additional $7,500 to each plan in 2024.
- Each plan includes a special catch-up option that may be available to employees who have not contributed the maximum in past years.
Effect of Contributions to Other Retirement Plans
Contributions you make to any 403(b) Plan or 401(k) Plan (including the VA’s TSP Plan) during a calendar year count toward the maximum amount you may contribute to the University's 403(b) Plan.
Contribution Types & Making Contributions
You may make pre-tax or after-tax Roth contributions to either or both plans.
- Contributions are made through payroll deduction.
- Employees may start or stop participation, or change deferrals at any time for future paychecks.
- Minimum deferral to each plan is $25/month ($12.50/paycheck).
- The IRS rules govern the maximum that can be deferred to each plan. Maximum amounts are reviewed annually by the IRS and future limits may increase based on cost of living increases.
2024 Maximum Contribution $23,000.00 2024 Age 50 Catch-up $7,500.00 - Employees may defer the maximum amount to both a 403(b) and a 457(b) account.
- Employees who are age 50 or older may defer the additional age 50 catch-up amount to each plan.
- Pre-tax deferrals may be made to both plans.
- The taxes you pay through payroll will be lower.
- You will pay taxes when you withdraw the money from your account.
- After-tax Roth deferrals may be made to both plans.
- You pay taxes now on the amount you defer and withdrawals of deferrals and any earnings are tax free in retirement.
- You must have had the account for at least five tax years to be able to make tax-free withdrawals.
To set up deferrals or make changes to prior elections, log into UBenefits and click on the “Retirement Savings” tile.
Investment Providers
Fidelity Investments and TIAA are the investment providers for both plans.
Loans
- You may take up to two loans in each plan. Loans are subject to other rules. Apply for loans directly through your investment provider.
Withdrawals and Distributions
- 32 days or more following retirement or termination of employment
- Distributions while employed are allowed for employees age 59½ or older, or employees with a qualifying hardship
- Withdrawals prior to age 59½ may be subject to a 10% IRS penalty
- Pretax contributions and associated earnings are subject to income taxes upon withdrawal
- The University's Hardship Certification Form with eligible reason for your hardship: 403(b) Plan Hardship Certification
- There are strict IRS and plan rules governing withdrawal of funds.
- Former employees and retirees may withdraw funds (or roll funds out of the plans) after their university employment has been terminated for 32 or more days.
- Hardship withdrawals are available in certain situations that meet Internal Revenue Code rules. To make a hardship withdrawal, submit the following to University Human Resource Management:
Exchanges
Most plan assets may be transferred within the same plan between the University’s investment providers (Fidelity Investments and TIAA). Rollovers or transfers to another plan or individual account are only allowed when the employee qualifies for one of the withdrawal/distribution options (see above)
Rollovers
Rollovers are accepted from a previous employer’s similar retirement plan. Contact your investment provider for details.
457(b) Plan
Eligible to Make Contributions
All employees receiving pay through the University’s payroll system. The University provides an annual Universal Availability Notice to all employees to notify them of their ability to make contributions.
Maximum Contribution Amounts
- The maximum amount employees may contribute to these plans is set annually by the IRS.
- In 2024, employees may contribute up to $23,000 to each plan.
- Employees who are age 50 or older may contribute an additional $7,500 to each plan in 2024.
- Each plan includes a special catch-up option that may be available to employees who have not contributed the maximum in past years.
Effect of Contributions to Other Retirement Plans
Only contributions you make to a 457(b) Plan during a calendar year count toward the maximum amount you may contribute to the University's 457(b) Plan.
Contribution Types & Making Contributions
You may make pre-tax or after-tax Roth contributions to either or both plans.
- Contributions are made through payroll deduction.
- Employees may start or stop participation, or change deferrals at any time for future paychecks.
- Minimum deferral to each plan is $25/month ($12.50/paycheck).
- The IRS rules govern the maximum that can be deferred to each plan. Maximum amounts are reviewed annually by the IRS and future limits may increase based on cost of living increases.
2024 Maximum Contribution $23,000.00 2024 Age 50 Catch-up $7,500.00 - Employees may defer the maximum amount to both a 403(b) and a 457(b) account.
- Employees who are age 50 or older may defer the additional age 50 catch-up amount to each plan.
- Pre-tax deferrals may be made to both plans.
- The taxes you pay through payroll will be lower.
- You will pay taxes when you withdraw the money from your account.
- After-tax Roth deferrals may be made to both plans.
- You pay taxes now on the amount you defer and withdrawals of deferrals and any earnings are tax free in retirement.
- You must have had the account for at least five tax years to be able to make tax-free withdrawals.
To set up deferrals or make changes to prior elections, log into UBenefits and click on the “Retirement Savings” tile.
Investment Providers
Fidelity Investments and TIAA are the investment providers for both plans.
Loans
- You may take up to two loans in each plan. Loans are subject to other rules. Apply for loans directly through your investment provider.
Withdrawals and Distributions
- 32 days or more following retirement or termination of employment
- Distributions while employed are allowed for employees age 70½ or older, or employees with a qualifying unforeseeable emergency
- No IRS penalty for early withdrawals
- Pretax contributions and associated earnings are subject to income taxes upon withdrawal
- The University's Hardship Certification Form with eligible reason for your hardship: 457(b) Plan Hardship Certification
- Former employees and retirees may withdraw funds (or roll funds out of the plans) after their university employment has been terminated for 32 or more days.
Exchanges
Most plan assets may be transferred within the same plan between the University’s investment providers (Fidelity Investments and TIAA). Rollovers or transfers to another plan or individual account are only allowed when the employee qualifies for one of the withdrawal/distribution options (see above)
Rollovers
Rollovers are accepted from a previous employer’s similar retirement plan. Contact your investment provider for details.