Supplemental Retirement Plans

As an employee of Augusta University, you are permitted to participate in a 403(b) and/or 457(b) tax deferred retirement programs and a Roth 403(b) and/or a Roth 457(b).

What is a 403(b) and 457(b) plan?

A 403(b) and a 457(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 pretax contributions for retirement savings. A Roth 403(b) and a Roth 457(b) plan is an after-tax plan that allows tax-free distributions if certain conditions are met and reduces taxable income during retirement and possibly help reduce taxation of Social Security benefits under current law.

Why contribute to a 403(b) and/or a 457(b)?

Participating in your plan can provide a number of benefits including:

  • LOWER TAXES TODAY. Your 403(b) and/or 457(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) and/or a 457(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) and/or 457(b) contribution.
  • TAX-DEFERRED GROWTH. Your account in the 403(b) and/or 457(b) plan is tax-deferred. This means 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) and/or 457(b) plan can provide a healthy supplement to an employee's retirement income.

Why contribute to a Roth 403(b) and/or a 457(b)?

  • Contribute after-tax dollars.
  • Take tax-free distributions if the following conditions are met:
    • If withdrawn after the end of the five-year period beginning with the first year for which a Roth contribution was made to the plan; and
      • You attain age 59 1/2; or
      • Your total disability or death
  • Reduce taxable income during retirement and possibly help reduce taxation of Social Security benefits under current law.

What companies can I participate with?

Fidelity

Representative:

Telephone:

To Enroll/Update/View Account:

John Schultz

800-603-4015

www.fidelity.com/atwork
VALIC - Only Company available for the Roth 403(b) and Roth 457(b)

Representative:

Telephone:

Enrollment Information:

Tommy Burckhalter or Ross Douglas

706-722-4600

Contact Benefits & Data Management Office @ 721-3770 for more information.
TIAA-CREF

Representative:

Telephone:

To Enroll/Update/View Account:

Ricky Pavelock

770-512-3592

www.tiaa-cref.org/gru

How much can I contribute?

403(b),457(b), Roth 403(b), and 457(b) contributions for Augusta University employees in 2017 are generally limited to 95% of full gross salary not to exceed $17,500 for employees less than age of 50, or 95% of full gross salary not to exceed $23,000 for employees who are projected to attain age 50 or more by December 31, 2017. (Age-based catch-up under section 414(v)).