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UT System offers two voluntary retirement savings programs, the UTSaver TSA (403(b)) and the UTSaver DCP (457(b)). These programs allow you to tax-defer additional income for retirement, through pre-tax contributions. The programs do not include an employer contribution. Participants reduce their taxable income by making pre-tax contributions from their paycheck to invest in fixed or variable annuities or mutual funds with an authorized company. Any investment earnings are tax-deferred until the money is withdrawn, and the earnings are subject to ordinary income tax rates; presumably, this will be done when income tax rates are lower for individuals.
See the Comparison of Supplemental Retirement Savings Programs for more details.
To download a document of the key plan features, click here.
Contributing to the UTSaver Deferred Compensation Plan (UTSaver DCP) can significantly reduce your current taxes and help you save for retirement. Contributions are conveniently taken by payroll deduction.
Eligibility
All employees of the UT System are eligible to participate in the UTSaver DCP.
Contributions
You can contribute as little as $20 per pay period or as much as 100% of your eligible compensation up to $15,500 (for 2007) in the UTSaver DCP. There are also two catch up provisions:
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Age 50 Catch up: If you are age 50 or older, you may contribute an additional $5,000.
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Special Catch-up: If you are within three years of the taxable year in which you attain normal retirement age, you may be able to contribute up to an additional $15,500 per year. Eligibility for this special catch-up provision is dependent upon your unused elective deferrals for the prior years you were eligible to participate in a 457(b) plan and must be calculated by your Benefits Office. The Age 50 Catch-up and the Special Catch-up may not be used simultaneously.
Neither your UTSaver Tax-Sheltered Annuity nor your Optional Retirement Program contributions affect the total amount you are able to defer under the UTSaver DCP.
Enrollment
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Log onto
UTRetirement Manager and click on the DCP Enroll/Change page.
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Complete an account application(s) with the provider(s) you have selected.
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If you are utilizing the special catch-up provision, contact your Benefits Office and request a calculation of your contribution limit.
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Complete the
Special Catch-Up Provision Agreement (if utilizing this option) and return it to your Benefits Office.
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