UTSaver 403(b) Tax-Sheltered Annuity

What is the UTSaver 403(b) Tax Sheltered Annuity (TSA) Program?

The UTSaver 403(b) TSA is a supplemental retirement savings program that allows participants contribute additional income for retirement, through salary deferral. These contributions are in addition to contributions made to the mandatory retirement program. The program does not include an employer contribution.  You may contribute to the UTSaver TSA with pre-tax (“Traditional”) or post-tax (“Roth”) payroll deductions. Depending on your personal financial situation, it may be beneficial for you to choose one contribution strategy over the other. For a comparison between Traditional, Roth 403(b), and Roth IRA contributions, click here . The contributions may then be invested in a fixed or variable annuity or mutual fund product with an authorized retirement provider. For additional information, please consult your investment or financial advisor.   

How much can I contribute?

• For 2010, you can contribute 100% of your TSA eligible compensation or $16,500 per year, whichever is less.
• If you are age 50 or older, you may contribute an additional $5,500.
• If you have 15 years of UT System service, and previous deferrals have averaged less than $5,000 per year, you may be able to defer an additional $3,000 above the annual maximum.
• The additional deferral may not exceed a lifetime maximum of $15,000.

How do I get started?

• Contact Charles Marrs at 499-4662 and request a calculation of your contribution limit.
• Review and select a provider(s) from the list of authorized providers . You may select more than one provider for your UTSaver TSA participation.
• Log onto UTRetirement Manager and click on the TSA Enroll/Change page.
• Complete an account application(s) with the provider(s) you have selected.

May I change my contribution amount?

• You may increase, decrease, or stop contributions as often as once per month.
• To change or discontinue your contribution, log onto UTRetirement Manager and select "TSA Enroll/Make Changes."

May I change vendors?

• You may change your contributions to a new provider at any time by logging onto UTRetirement Manager.
• To transfer existing money, please complete a Transfer Verification Form. This form must be signed by your local benefits office as well as the receiving provider.

What happens if I separate employment?

• You have the option to leave your funds in the existing 403(b) account or roll your account into a qualified plan, such as another 403(b) plan, a governmental 457 plan, a 401(a) plan, or an IRA.
• Distributions are available for participants who separate from state employment (or due to financial hardship or death), but a 10% tax penalty applies to distributions made before age 59 1/2.
• Income tax must also be paid on the distribution amount.

For your protection, you should not sign any transaction forms relating to application, transfer, or withdrawal of any TSA contributions based solely on assurances from a company representative, broker, or agent if you have any doubts about the transaction.

Lack of knowledge or deceptive practices by a representative, broker, or agent could be costly to you in terms of money, taxes, and penalties. The UT System can not assume any responsibility either for investment terms or for tax status. There is no guarantee of the tax rate that will be in effect at the time of an employee's retirement.

Questions?

If you have any questions, contact:

Charles Marrs, Retirement Program Analyst
Office of Employee Benefits
(512) 499-4662
cmarrs@utsystem.edu

or visit the website: http://www.utretirement.utsystem.edu/.