Effective January 1, 2009
Tax-Deferred Savings Program
The University of Virginia offers an optional savings program that allow employees to tax-defer income and invest for the future. The plans are available through TIAA/CREF, The Vanguard Group, and Fidelity Investments, and are open to all employees who can contribute the monthly minimum of $20. The maximum amount that can be contributed on a tax-deferred basis in 2009 is $16,500 with an additional age catch-up of $5,500. Employees who have been employed with the University for at least 15 consecutive years may be eligible for an additional catch-up of up to $3,000. The University calculates this maximum amount and the employee signs a Tax Deferred Savings Program Authorization Form (Salaried Employees) or Tax Deferred Savings Program Authorization Form (Wage Employees) which specifies the authorized amount of the salary reduction. These forms were previously referred to as the Salary Reduction Agreement (for salaried employees), and the Wage Reduction Agreement (for wage employees).
Employees may participate in both the 403(b) and Commonwealth 457(b) and can contribute the maximum to both.
Beginning January 1, 2008, all eligible newly hired or re-hired salaried state employees will have $40 per month automatically deferred to the 403(b) Plan with Fidelity Investments unless you actively enroll in a 403(b) or 457 plan within 60 days of your date of hire or opt out of participation. Employees who are enrolled automatically will receive a $20 per month match to the Cash Match Plan with Fidelity Investments.
For more information contact the Benefits Division at (434) 924-4392 or email benefits@virginia.edu.
| For Plan Details: |
| TIAA-CREF |
(800) 842-2733 |
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| Fidelity |
(800) 343-0860 |
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| Vanguard |
(800) 523-1188 |
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Forms:
Commonwealth Deferred Compensation Plan (457b)
The Commonwealth of Virginia offers for employees an optional savings program that allow employees to tax-defer income and invest for the future. The plan is available through the Commonwealth’s vendor, ING, and is open to all employees who can contribute a monthly minimum of $20 per month. The maximum amount that can be contributed on a tax-deferred basis in 2009 is $16,500 with an additional age catch-up of $5,500. In addition there is a standard catch-up that employees may be eligible for during the three calendar years prior to the designated normal retirement age. ING will determine eligibility for this catch-up.
To enroll in the Commonwealth’s plan employees need to complete the Participant Enrollment Form and Beneficiary Designation Form and submit to the Benefits Division.
For more information contact the Benefits Division at (434) 924-4392 or email benefits@virginia.edu.
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