403(b)
Tax-Sheltered Annuity Plan
A tax-sheltered annuity plan as provided for under the Internal Revenue
Code is a retirement income vehicle enabling many employees of public schools
and tax-exempt organizations described in section 501(c)(3)* of the
above-mentioned code to defer taxation on retirement savings to future
years. The employee selects the carrier and investments.
Plan
Highlights
-
All
permanent employees of UNC Asheville are eligible
-
You
may enroll anytime
-
Account
is always 100% vested
-
Change
contribution rate anytime
Contribution Limits
403(b) participants can contribute up to 80% of salary not to exceed the
specified contribution limit. The maximum annual contribution limit will be
:
Catch-Up Contributions
Participants who are age 50 or older are allowed to make additional catch-up
contributions as follows. Catch-up contributions can only be made after the
maximum allowable have been made.
* Note: The annual contribution limits for the 403(b) and the 401(k)
are combined - you may only contribute a total of the annual limits between the
two plans. For instance, in 2005 you could contribute $7,000 to the 401(k)
and $7,000 to the 403(b) for a total of $14,000 without exceeding the annual
limit.
*Generally,
section 501(c)(3) tax-exempt organizations are organized and operated
exclusively for religious, charitable, scientific, literary and educational
purposes.
Important
403(b) Changes Effective 01/01/09
For
more information about 403(b) Plan, please email or call Lisa Honeycutt
at 232-5114.
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