TAX DEFERRED ANNUITY (TDA)
The tax deferred annuity program is offered to all employees. Investments are through life insurance companies and mutual fund companies on our list of approved retirement vendors.
- All contributions are excluded from taxable income until distributed from the account to the employee.
- Contributions to the TDA are employee only.
- The minimum monthly contribution is $25.00. Starting in 2015 the annual maximum for calendar year is $18,000.
- An employee can withdraw contributions from the account at employment termination, upon obtaining age 59 ½, or upon suffering a qualified financial hardship.
Employees may enroll in a TDA at any time, but may change carriers only twice per year.
ROTH 403 (b)
The Roth 403 (b) allows faculty and staff to defer some of their income on an after-tax basis with earnings growing tax free.
Employees may participate in both traditional 403 (b) TDA pre-tax and Roth 403 (b) post-tax. However, 403 (b) voluntary saving plans contribution may not exceed the maximum annual deferral limit, which is $18,000 as of 2015.
DEFERRED COMPENSATION PROGRAM (457 PLAN)
Employees may enroll in a deferred compensation plan that allows the employee to defer a portion of their income and deposit it with our approved retirement vendors.
- Benefits paid to the employee or beneficiary equal the value of the deferred compensation account. The State's liability will never exceed the value of that account.
- The State will not be liable for any losses resulting from depreciation or a loss in the value of the account.
- In the event of death of the employee, the beneficiary must file a distribution agreement through the Benefits Office.
- The minimum monthly contribution is $25.00 and the annual maximum for calendar year, starting in 2015, is $18,000.