Looking for ways to add to your retirement savings?
The new year is a great time to review your savings plans to ensure you’re maximizing your contributions. In addition to the state retirement plans offered, as a UF employee you may also participate in a 457(b) Deferred Compensation plan and/or voluntary 403(b) plans to supplement your retirement via payroll deductions.
Both the 457(b) and 403(b) plans are voluntary savings plans available to faculty, TEAMS, USPS and OPS employees — including housestaff/residents, graduate assistants, postdocs and adjunct faculty. Read on for a breakdown of each plan.
The 457(b) plan is available to all UF employees. Plan contributions are taken via payroll deductions on a pre-tax basis, which lowers your taxable income. There are no administrative, maintenance or commission fees associated with the plan, and no tax penalties if you withdraw your funds 30 days after leaving your job.
A 457(b) plan also offers you excellent investment options, including Guaranteed Principal and Interest Accounts, Target Date Funds and numerous Mutual Funds. You also benefit from immediate vesting and can rollover other pre-tax retirement accounts into a 457(b) plan.
UF offers employees three types of 403(b) plans: Tax-Deferred UF 403(b), After-tax Roth UF 403(b) and a Voluntary ORP 403(b) plan.
Tax-Deferred UF 403(b)
All UF employees can enroll in a tax-deferred UF 403(b) plan. Plan contributions are taken via payroll deductions on a pre-tax basis, which lowers your taxable income, and you decide how much money you contribute to the plan. You benefit from immediate vesting and may pick from multiple investment options, including Guaranteed Principal and Interest Accounts, Target Date Funds and numerous Mutual Funds. You will pay an early withdrawal penalty fee if you withdraw funds before you’re 59 ½.
After-Tax Roth UF 403(b)
All UF employees can enroll in an after-tax Roth UF 403(b) plan. Participants pay taxes as contributions are made and qualified distributions are tax-free. You decide how much money you contribute to the plan and benefit from immediate vesting. You may pick from multiple investment options, including Guaranteed Principal and Interest Accounts, Target Date Funds and numerous Mutual Funds. You will pay an early withdrawal penalty fee if you withdraw funds before you’re 59 ½.
Voluntary ORP 403(b)
The Voluntary ORP 403(b) tax deferred plan is available to TEAMS-A and faculty participating in the State University System Optional Retirement Program, or SUSORP. Plan contributions are taken via payroll deductions on a pre-tax basis, which lowers your taxable income, and you can contribute up to 5.14% of your SUSORP-eligible earnings to the plan. You benefit from immediate vesting and may pick from multiple investment options, including Guaranteed Principal and Interest Accounts, Target Date Funds and numerous Mutual Funds. You will pay an early withdrawal penalty fee if you withdraw funds before you’re 59 ½.
If you have questions about these voluntary retirement plans or need assistance enrolling, contact the UF Benefits team at (352) 392-2477 or via email at benefits@ufl.edu.