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Supplemental Retirement Savings
You can enhance your retirement savings through voluntary contributions to a Supplemental Retirement Account (SRA). The benefit is determined by your account balance and the payment option(s) you choose when you apply to receive benefits:
- Deferred Compensation Program (DCP) - as allowed under Section 457 of the Internal Revenue Code
- Tax-Deferred Accounts (TDA) - as allowed under sections 403(b) 403(b)7 of the Internal Revenue Code
Important Information For You to Know
- The university does not contribute to the 403(b) or 457 Plans.
- You can contribute up to the IRS established annual maximum. You may be eligible to contribute catch up contributions if you are age 50 or older.
- When you separate from the university (regardless of the reason), you are able to defer taxation of all or a portion of your vacation or sick pay out (if applicable) up to the IRS maximum by directing the pay out to a 403(b) or 457. You must make your election to defer at least 30 days prior to the effective date of your separation.
- You allocate a portion of your pay to be invested. The amount is deducted before taxes are paid.
- In order to establish an account, you must contact one of the providers approved by the university and complete the appropriate paperwork to establish an account (some vendors provide online enrollment).
- Once you’ve established an account, review your investment options and decide which are best for you.
- In order for UC payroll deduction to begin, complete the online Salary Reduction Agreement (for the 403(b)). If you elected the 457, contact Ohio Deferred Compensation to begin the enrollment process.
- You CAN contribute to both the 403(b) and 457 up to the IRS limits.
Two advantages of participating in a tax-deferred savings program are:
- A portion of your income is withheld and invested before federal and state income taxes are withheld.
- Your earnings accumulate tax-free. Tax free investing allows you to accumulate earnings without paying taxes until the money is withdrawn.
Catch up contributions are amounts you can contribute in excess of the IRS annual contribution maximum. If you have already contributed the maximum amount permitted under the plan and you are at least 50, you may make additional contributions. If you are interested in making ‘catch up’ contributions, you can do so by submitting the online Salary Reduction Agreement Form (for 403(b)) or by contacting Ohio Deferred Comp for the 457 Plan.
- The 403(b) Plan does not permit in-service withdrawals (unless age 59.5) or loans. Funds are only available following separation of employment (unless age 59.5).
- The 457 Plan permits in-service distribution in the event of an IRS approved financial hardship.
You may be able to access your 403(b) account balance for OPERS or STRS service purchase. Contact your retirement plan system with questions.
You can change your 403(b) contribution amount at any time. Your request will be processed on the next available payroll period following receipt of your request in Payroll Operations. If you are choosing a new vendor, you are responsible for contacting them and establishing your account. You must establish the account before you complete the online Salary Reduction Agreement.
You can make changes to your contributions to the 457 Plan at any time by contacting Ohio Deferred Compensation at (877) 644-6457.
Frequently Asked Questions
What is a Supplemental Retirement Account?
A Supplemental Retirement Account (SRA) allows you the opportunity to contribute to an additional retirement account. There are two types of SRAs - Deferred Compensation Programs (457 plans) and Tax-Deferred Accounts 403(b) and 403(b) 7 plans. SRAs allow you to enhance your mandatory retirement plan savings through voluntary pre-tax contributions.
What are catch-up contributions?
- Under certain circumstances, you may qualify through either SRA plan for the "catch up" contribution provision. Catch-up contributions are amounts you can contribute in excess of the annual plan contribution limits. If you have already contributed the maximum amount(s) under the plan(s) and you are at least age 50, you may make additional contributions which are limited based on federal guidelines.
What investment options are offered?
- Each vendor offers a variety of options in which you may elect to invest your contributions. You assume the investment risk; all earnings and losses accrue to your account. You assume the cost for any management fees associated with your investments, which may vary from vendor to vendor.
Can I access my 457 contributions during my employment with the university?
- The Ohio Deferred Compensation website has more information on the Ohio Deferred Compensation Program.
When can I change my elections?
You can change your SRA contribution amount and/or your SRA vendor at any time by submitting a completed Salary Reduction Agreement to Payroll Operations. Your existing account balance may remain with your previous vendor, or any portion may be transferred to the new vendor. (Applicable transfer fees may apply.)