Tax-deferred annuity plans provide a way for you to contribute to a retirement account on a pre-tax basis through payroll deduction. Your contributions, plus earnings, are not taxed until you withdraw the funds. Usually this will be during your retirement, when your income often falls within a lower tax bracket. There is no employer contribution made to these plans.
Where is my money invested?
The following programs are available to all employees:
Teachers Insurance Annuity Association-College Retirement Equities Fund (TIAA-CREF)
Voya (formerly ING Life Insurance and Annuity Company)
Fidelity Investments (403(b)(7) Mutual Funds)
These providers offer a wide choice of funds, including stock, bond and guaranteed funds.
To participate in any of these programs or to change the amount of your contribution, you must sign a Salary Reduction Agreement with the Human Resources Office. You may change your contribution as frequently as you wish.
How much can I contribute?
You choose the amount, within certain limits.
Limit if under age 50
2011 - $16,500
2012 - $17,000
2013 - $17,500
2014 - $17,500
2015 - $18,000
Limit if age 50 or over (by 12/31)
2011 - $22,000
2012 - $22,500
2013 - $23,000
2014 - $23,000
2015 - $24,000
Employees who have at least 15 years of service with SUNY may be eligible to contribute an extra $3,000 per year (lifetime maximum $15,000) in addition to the amounts listed above. If interested, contact your Human Resources Office to see if you qualify.
This plan is set up under Section 403(b) of the Internal Revenue Code. If you contribute to a 403(b) or 401(k) plan through another employer, the limit applies to all contributions combined. Contributions to a 457 (deferred compensation) plan do not affect contributions to this program.
How do I get started?
To enroll, make changes to, or discontinue an existing tax deferred program listed above, please complete a Salary Reduction Agreement and return it to the Employee Benefits Office, Couper Administration Building, AD 244.
Other Ways to Save on a Tax-Deferred Basis
You may also be eligible to participate in the NYS Deferred Compensation Plan. Because such Section 457 plans are set up under a different section of the Internal Revenue Code than SUNY's tax-deferred savings program, the amount you can contribute and rules for withdrawal differ. You may choose whether to participate in the Deferred Compensation Plan, in SUNY's tax-deferred savings program, or both.
For more information or to enroll, contact NYS Deferred Comp at www.nysdcp.com or 1-800-422-8463.
All employees are eligible for this plan