403 B - Voluntary Retirement Plan

IRS Section 403b - Voluntary Supplemental Retirement Plan

Section 403b of the Internal Revenue Code allows employees of educational institutions to establish a Supplemental Retirement Account (SRA) to set aside a portion of their salary before federal and state taxes are paid.  This deferred salary is placed into an investment account of your choice.  The salary deferred and any earnings are not taxed until you receive them.

There are a variety of investment options, each with a varying degrees of return and financial risk.

Participation is voluntary and THERE IS NO EMPLOYER CONTRIBUTION ON YOUR BEHALF.

Employees are eligible to participate on the first day of employment.

Highlights

• Tax Defer lesser of $22,000 age 50 and above, $16,500/year or 100% of adjusted gross income (after tax earnings).

• Minimum monthly contribution is $20.

• Can defer the maximum contribution to both the 403 (b) plans and the Louisiana Deferred Compensation Plan (up to $33,000 for employees under age 50; $44,000 for employees age 50 and over).

• Withdrawals prior to age 59 1/2 are subject to IRS penalty (10%).

• Enroll, change, or stop contributions at any time.

• Contributions can be rolled into an IRA upon termination of employment.

IRS Distributable Event Guidelines

Once enrolled, funds can only be withdrawn/rolled over if a distributable even has occurred.  Otherwise, the employee is limited to transferring funds from one employer sponsored vendor to another.

Distributable Events: Death, Disability, Attainment of age 50 1/2,  Termination of employment.

Annual Contribution Limits

403(b) Plan Approved Vendors

LSU E-Z Enrollment Retirement Program Form