Take advantage today

Your specific eligibility in the 403(b) Tax Deferred Annuity (TDA) is determined by your employer at date of your full-time employment. Some exceptions may apply. You should consult with your employer on specific eligibility requirements.

Please note that you should review your University's plan document in order to get the specific details of your plan or you may contact your financial professional. 

Starting early has its advantages

Contributions

Through payroll deduction, you will be able to contribute a portion of your compensation into the plan up to the maximum IRS contribution limit. Your contributions will be deducted from your pay, automatically, and on a pretax basis.

Depending on your University's plan provisions, Roth 403(b) contributions may also be permitted.

Your employer may contribute a certain percentage of your total compensation to the plan as well. The actual percentage amount for the employer contribution is determined by your University's plan document.

Catch-up contributions

You may be eligible for catch-up contributions depending on your University's plan document. The catch-up contributions are as follows:

Vesting

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, rollover contributions, plus any earnings they generate. 

For employer contributions, vesting schedules may apply. See your University's plan document for more details. 

Please note that you should review your University's plan document in order to get the specific details of your plan or you may contact your financial professional. 

Accessing your money before retirement

Withdrawals

Your plan was established to encourage long-term savings. A 403(b) plan has less stringent withdrawal restrictions than a 457(b) plan while you are employed; however, a 10% federal early withdrawal penalty can apply to withdrawals prior to age 59½. The 10% federal tax penalty on early withdrawals may also apply to amounts rolled into the 457(b) plan from non-457(b) plans.

Depending on your University's plan provisions, a distribution may be made in these events: 

• Severance from employment
• Retirement
• Disability
• Death 
• In-service withdrawals 

Income taxes are payable upon withdrawal. Federal restrictions and a 10% federal early withdrawal penalty may apply to withdrawals prior to age 59½ unless an exception applies. Be sure to talk with your tax advisor before withdrawing any money from your plan account. 

Loans

The plan is intended to help you put aside money for your retirement. However, your plan has included a feature that enables you to access money without permanently reducing your account. See your University's plan document for more details.

Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal early withdrawal penalty if you are under age 59½. Other requirements and limits must be met prior to borrowing money from your account. For additional information regarding loans, please see your financial professional. 

Please note that you should review your University's plan document in order to get the specific details of your plan or you may contact your financial professional.