Supplemental Retirement Accounts (SRA)
TIAA and Empower Retirement Supplemental Retirement 403(b) and 457(b) Pre-tax Contributions
WVU provides supplemental, voluntary tax-deferred retirement plan(s), a
The 403(b) plan provides an opportunity for both benefits-eligible and non
benefits-eligible employees to voluntarily save for retirement. Just like the 401(a)
plan, contributions are tax deferred and made on a pre-tax basis. Unlike the 401(a)
plan however, there is no employer matching contribution. All employee contributions
are immediately 100% vested.
Both loans and hardship withdrawals are available with the 403(b) plan. In service withdrawals are also available from the plan once the participant has attained the age of 59 1/2. The IRS-imposed 10% penalty rules for pre age 59 1/2 withdrawals are the same as the 401(a) plan.
The 457(b) plan provides an opportunity for benefits-eligible employees to voluntarily save for retirement. Just like the 401(a) plan, contributions are tax deferred and made on a pre-tax basis. Unlike the 401(a) plan however, there is no employer matching contribution. All employee contributions are immediately 100% vested. Loans are available with the 457(b) plan. No in-service withdrawals are available from the plan. The IRS-imposed 10% penalty for pre age 59 1/2 withdrawals does not apply to the 457(b) plan.
These plans allow the benefits-eligible employees to supplement their retirement
savings with the advantages of tax-deferral and payroll deduction. Contributions
are limited to a maximum determined each year by the Internal Revenue Service.
Upon separation from service, the participant may begin annuity income or make
cash withdrawals. Cash withdrawals may be subject to the 10% early-withdrawal penalty
unless separation from service occurred after age 55 or the participant is at least
age 59 1/2. Also any contribution to a 457(b) plan is not subject to an early-withdrawal
penalty. There is no minimum limit and paycheck deduction changes at any time during
the calendar year. The supplemental retirement vendors are the same as for the
401(a), TIAA and Empower Retirement.
TIAA Supplemental Retirement
On Sept. 1, 2011, West Virginia University introduced the Roth 403(b) supplemental
retirement account available to all employees through TIAA. With this option, you
- Contribute after-tax dollars;
- Enjoy tax-free distributions, without penalty, when you are age 59 1/2 or older and when you take a distribution five years after you made the first Roth contribution to the contract. Withdrawals of earnings prior to age 59 1/2 are subject to ordinary income tax and a 10% penalty may apply.
- Roll over assets into a Roth Individual Retirement Account (IRA), or into/from
another Roth 403(b) Supplemental Plan that accepts such assets. (Rollovers and
withdrawals are subject to the provisions of your retirement plan.)
For information on the Roth Contribution Option go to:
WVU - Roth 403(b) Contribution Option Information
At the current time, Roth contributions are not available to Empower Retirement 403(b) accounts.
If you have questions regarding Roth 403(b) contributions, please contact TIAA at 800-842-2776.
Schedule face-to-face meeting (TIAA only)
1.800.701.8255 (toll free)
Supplemental Maximum Contributions
IRS contribution limits are established annually. For 2017, the limits are $18,000 for each the 403(b) and 457(b) supplemental retirement accounts. If you are at least 50 years of age, or will be at least 50 years of age, on the last day of the calendar year (12/31), you are eligible for a “catch up” contribution of an additional $6,000 annually for each of the 403(b) and 457(b) supplemental Retirement Accounts. For more details, see the IRS announcement.
Under the age of 50:
Age 50 or more by December 31, 2017:
When enrolling for the first time in any Supplemental Retirement Account
When enrolling in a 403(b) or 457(b) or both, with either TIAA-CREF or Empower Retirement, employees will need to complete the appropriate enrollment form with TIAA-CREF or Empower Retirement. In addition, employees will also need to complete a Salary Reduction Agreement to indicate the percent per pay they would like to have deducted from their pay.
Note: If you already have an existing 403(b) or 457(b) account with either TIAA or Empower Retirement, there is no need to re-enroll – just complete a Salary Reduction Agreement to either change or re-start the salary reductions.
Enroll online at www.tiaa-cref.com/wvuEmpower Retirement 403(b) Enrollment Form
Empower Retirement 457(b) Enrollment Form
Health Science Center staff with Dual Appointments
HSC staff with both West Virginia University and University Health Associates (Medical Corp. included) appointments should consider enrolling in the 457(b) plan with WVU, and the 403(b) plan with UHA. If the employee does have an appointment with WVU and UHA (Dental Corp.) but does not have a 403(b) available to him, then the employee can enroll in WVU’s 403(b) plan. The important point is the employee does not want to be enrolled in 403(b) plans with each employer and “max out” under both 403(b) plans.