403(b) plan
Plan details
Welcome to your 403(b) retirement plan. Click below to view the features and highlights of your employer’s retirement plan.
The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.
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Who can participate?
All full-time, part-time or temporary non-student employees can participate in the 403(b) retirement savings plan. Your plan allows you to make pretax contributions or after-tax Roth contributions up to the maximum allowed by the Internal Revenue Service. You may begin contributing to the plan immediately.
Starting early has its advantages
Employee contributions
Through payroll deduction, your plan allows you to make pretax contributions or after-tax Roth contributions up to the maximum allowed by the Internal Revenue Service. In order to participate in the plan, you must make pretax contributions of at least $100 annually. Special catch-up provisions may also be available. Talk to your financial professional for more information.
Rollovers or transfers
If you have an existing qualified retirement plan (pretax), 403(b) tax-deferred arrangement or deferred compensation plan account with a prior employer, you can transfer or roll over that account into the plan on becoming a participant in the plan.
Important considerations before deciding to move funds either into or out of a Corebridge Retirement Services account
There are many things to consider. For starters, you will want to carefully review and compare your existing account and the new account, including: fees and charges; guarantees and benefits; and, any limitations under either of the accounts. Also, you will want to know whether a surrender of your current account could result in charges. Your financial professional can help you review these and other important considerations. Consult a tax professional before making a decision to move funds either into or out of a Corebridge account.
Can I stop or change my contributions?
You may stop your contributions anytime. Once you discontinue contributions, you may start again the month following the month that you submit a new agreement.
You can increase or decrease the amount of your contributions anytime.
How does Auburn University contribute to the plan?
The Plan also provides for Auburn University to make employer contributions.
- The matching contribution is equal to 100% of your elective deferrals up to 5% of your includible compensation. The matching contribution cannot exceed $1,650 per plan year.
How do I become "vested" in my plan account?
Vesting is a participant’s right of ownership to the money in his or her plan account. You are always 100% vested in employee contributions, and rollover contributions, plus any earnings they generate. Contact the Payroll & Employee Benefits office for details on the vesting schedule of any contributions your employer makes to your savings.
Accessing your money before retirement
The plan was established to encourage long-term savings. Income taxes are payable upon withdrawal and federal restrictions and a 10% federal tax-penalty may apply to early withdrawals. Be sure to talk with your tax advisor before withdrawing any money from your plan account.
Money can be withdrawn from the plan in these events:
- Your retirement
- Your attaining age 59½
- Death
- Disability
- Severance from employment
Please be advised that in addition to the Corebridge Retirement Services Paperwork, Auburn University requires you to complete and submit the Distribution Acknowledgement Form to the Benefits Office. This form can be downloaded by clicking the “Prospectuses and other material” link. Failure to submit the Distribution Acknowledgement Form could delay your distribution request.
In addition, the Internal Revenue Service (IRS) requires you to take Required Minimum Distribution (RMD) withdrawals from your retirement account(s) annually beginning the year you reach the RMD eligible age. RMD eligible age is:
- Age 73 if you were born January 1, 1951, or later (The RMD eligible age will increase to age 75 after December 31, 2032)
- Age 72 if you were born after June 30, 1949, and before January 1, 1951 (For individuals turning age 72 in 2023, no RMD payment is required in 2023)
- Age 70 ½ if you were born before July 1, 1949.
Can I withdraw money in case of financial hardship?
If you have an immediate financial need created by severe hardship and you lack other reasonably available resources to meet that need, you may be eligible to receive a hardship withdrawal from your voluntary contributions.
If you feel you are facing a financial hardship, you should see your financial professional for more details.
Can I borrow money from my account?
The plan is intended to help you put aside money for your retirement. However, Auburn University has included a plan feature that enables you to access money from the plan.
The amount the plan can loan to you is limited by rules under the tax law. All loans will be limited to the lesser of: one-half of your vested account balance in all of your accounts or $50,000.
The minimum loan amount is $1,000.
All loans must generally be repaid within five years. A longer term may be available if the loan is to be used to purchase your principal residence.
You pay interest back to your account. The interest rate on your loan will be the Prime Rate plus 1%.
A $50.00 processing fee for all new loans and a $50.00 per year loan maintenance fee are charged to your account.
You are limited to 1 outstanding loan at a time.
Defaulted loan amounts will be taxed as ordinary income and may incur a 10% federal tax-penalty if you are under age 59½.
An array of investment choices
You decide how to invest all contributions made by you or on your behalf in your retirement plan.
The following funds are available in your plan. They provide you with the flexibility you need to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.
An effective annual gross charge of .24% will be assessed on mutual fund assets in the plan for which administrative services are provided. This does apply to the Fixed-Interest Option. Additionally, Fund Annual Operating Expenses apply depending on the mutual fund chosen and are described in the prospectus.
To view or print a prospectus, access “Prospectuses and Other Important Materials”. The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1.800.428.2542.
RO2767020(03/2023)