Are you optimizing your tax-deferring opportunities?
Tax season is here—now is a great time to ensure you are taking advantage of the many tax-deferring opportunities available to you as a UF employee.
“Anything you can do to tax-defer helps stretch your dollar,” said Shannon Edwards, UFHR Benefits director. “The first thing I tell people who come to me for savings advice is to do a financial check-up at the beginning of each year to ensure they are taking advantage of every opportunity.”
Check your Form W-4
Many of us complete Form W-4 when we are hired and never go back to adjust for how our lives may have changed. When you get married, have a child or your children become independent, for example, you may want to update your Form W-4 elections, which drive the amount of federal withholding taxes you have deducted from your paychecks. Claimed dependents or other tax credits will usually result in less tax being withheld. Conversely, claiming other income, fewer dependents or extra withholding will usually result in more tax being withheld.
In order to check your current Form W-4 elections, log in to myUFL and navigate to Main Menu > My Self Service > Payroll and Compensation > W-4 Tax Information. You can update your W-4 and direct that more or less tax be withheld anytime your tax situation changes. The IRS also provides a useful Tax Withholding Estimator to help guide you in making your Form W-4 elections.
Optimize your retirement contributions
UF employees are fortunate to have access to two tax-deferred voluntary retirement savings plans—the UF 403(b) plan administered by Fidelity Investments and the 457(b) Florida Deferred Compensation plan administered by the State of Florida. After-tax Roth options are also available through both plans, offering participants the ability to pay taxes as contributions are made and later take tax-free qualified distributions.
During the calendar year 2025, employees may tax-defer up to $23,500 through each of these voluntary retirement plans. For participants who will turn 50 by the end of 2025, the limit is increased to $31,000. Employees may enroll or modify their contributions to these plans at any time throughout the year. Read this UF at Work article to learn more.
HDHP participants: Contribute to a health savings account
If you are currently enrolled in a State of Florida High Deductible Health Plan (HDHP), a health savings account (HSA) is included with that plan. The state automatically contributes to each employee’s HSA at a rate of $500 annually for individual coverage and $1,000 annually for family coverage. These contributions build up over the year and may be used to pay for qualifying medical expenses.
In addition to the state funds, enrollees may choose to contribute money to their HSA by pre-tax payroll deduction. Not only does this reduce taxable income and offer great savings on health expenses, the funds also roll over year after year and belong to the employee indefinitely, even after separation from the university. After age 65, withdrawals may even be taken at will. As with regular pre-tax retirement accounts, taxes would be owed on any withdrawals.
If you are not currently contributing to your HSA or want to change your amount, you may do so at any time throughout the year, up to the annual maximum of $3,800 for individual coverage or $7,550 for family coverage. To make a change, call the State of Florida’s People First Service Center at 866-663-4735.
Questions?
If you have questions about W-4 tax withholding, please contact UF Payroll Services at payroll-services@ufl.edu.
For help with voluntary retirement savings plans or HSAs, you may contact the Benefits team at 352-392-2477, Option 2, or benefits@ufl.edu. Please note that members of the Benefits team are not certified financial planners and may not provide any financial or investment advice.
Visit the Financial Literacy Workshop Series webpage for
more retirement and financial planning resources.