Employee Savings 403 (b)(7)

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Employee Savings 403(b)(7)- General Information

Retirement Savings Plan Maximum Contributions

Special Note

 

Employee Savings 403(b)(7) - General Information

All employees, including Adjunct Faculty, may voluntarily contribute pretax dollars to a 403(b)(7) Tax Deferred Annuity Plan (employee savings), up to the maximum exclusion allowed.  There is no waiting period and vesting is always 100%.  Funds may be invested through Transamerica Retirement Solutions (Transamerica).  The Office of Human Resources will provide enrollment material and information about options but the participating employee directs all investment choices within the SPU monitored core menus of funds available through Transamerica. Accessibility to funds is governed according to the Internal Revenue Code for 403(b)(7) plans.

 

Retirement Savings Plan Maximum Contributions

The Economic Growth and Tax Relief Reconciliation Act of 2001 provided increased retirement savings opportunities for employees.  If you make contributions or are planning to make contributions to the voluntary tax-deferred 403(b)(7) retirement savings program, following are the maximum contribution limits for 2014.  If you are not contributing to your 403(b)(7) you may begin making contributions or change your investments at any time.

 

 

Generally, your voluntary contribution to the 403(b)(7) program is limited to $17,500 in 2014.

    • The overall limit for combined retirement contributions to your own 403(b)(7) plan plus contributions from SPU to your 401(a) plan   is the lesser of 100% of your salary or $52,000.  SPU contributes 9% of salary to the  401(a) plan for eligible employees. 
  • The 15-year rule continues to apply, allowing employees with 15 or more years of service at SPU to make up to $3,000 in voluntary contributions beyond the basic $17,500.    Prior contributions made under the 15-year rule are taken into account and a calculation must be performed to determine your personal maximum contribution.  If your service exceeds 15 years and you want to contribute more than $17,500 to the 403(b)(7) you will need to contact Diversified Investment Advisors to determine if you are eligible.
  • For individuals over age 50, an additional contribution of $5,500 to the 403(b)(7) program is allowed, but only after the annual 15-year rule annual maximum is reached (if any). 
  • You may take advantage of both the 15-year rule and the over-age-50 rule, if both rules apply, but the 15-year rule will be applied first..
 

You can change the amount you contribute to your 403(b)(7) account at any time by going online to Transamerica at http://www.trsretire.com or by calling 1-800-755-5801

 

 

Call Jackie Belz x2837 with any questions.

 

 

 

Special Note

 

The above Retirement and Tax Deferred Annuity plan information and details are a summary of these benefits. The actual plan documents take precedent over the information printed here. The University reserves the right to make changes to these benefit plans at any time, at the University's sole discretion. If such changes are made, you will be notified. For more information, please contact the Office of Human Resources at 281-2809.