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Human Resources & Employee Development
403b/Roth 403b/457b Tax Deferred Annuities
403(b)/Roth 403(b)/457(b)
VSU permits deductions for an individual's tax deferred annuity plan. The money deducted is not immediately subject to Federal or State income taxes, but it will be taxed at the time you receive it. Employee Benefits will assist you in making the salary reduction you authorize and remitting the amount to the retirement company each month on your behalf. Go to the 403B Website or 457B Website for instructions on how to enroll in these plans.
For upcoming Fidelity one-on-one counseling sessions click here.
For upcoming TIAA-CREF one-on-one counseling sessions click here.
For upcoming VALIC one-on-one counseling sessions click here.
403b Tax Deferred Annuities: Effective January 1, 2009
| Fidelity Investments | (220) 868-1023 |
| Teachers Insurance & Annuity Assoc (TIAA-CREF) | (888) 842-7782 |
| Variable Annuity Life Ins Company (VALIC) | (229) 988-4035 |
ABOUT YOUR 403(b) RETIREMENT PLAN
As an eligible employee of Valdosta State University, you are permitted to participate in a 403(b) tax deferred retirement program.
What is a 403(b) plan?
A 403(b) plan is a tax-deferred retirement plan available to employees of educational institutions and certain non-profit organizations. In this plan, you can make pre-tax contributions for retirement savings.
Why contribute to a 403(b)?
Participating in your plan can provide a number of benefits, including:
- LOWER TAXES TODAY. Your 403(b) contributions are made on a pre-tax basis which can greatly reduce your current income tax bill. For example, if your federal marginal income tax rate is 25%, and if you contribute $100 a month to a 403(b) plan, you’ve reduced your federal income taxes by roughly $25 (assuming a 25% tax bracket). In effect, your $100 contribution costs you only $75. The tax savings grow with the size of your 403(b) contribution.
- TAX-DEFERRED GROWTH. Your account in the 403(b) plan is tax-deferred. This means that your account can grow tax-free until time of withdrawal.
- ENHANCED RETIREMENT. Other sources of retirement income, including state pension plans and, Social Security, often do not adequately replace a person’s salary upon retirement. A 403(b) plan can provide a healthy supplement to an employee’s retirement income.
How do I get more information?
To obtain more information, including information about how to participate, and about the savings products made available under the plan, contact Human Resources and Employee Development at 333-5709.
Not intended as tax or legal advice. Neither your employer nor the investment providers offering savings products under the plan can provide you with tax or legal advice.