Tax Deferred Annuity and Deferred Compensation Plan
- Deferred Compensation (Traditional & Roth 401(k) and 457)
1-800-922-7772
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Investment Options Performance
Forms - 403(b) companies
Enrollment/Change Periods
You may enroll anytime. You can make contribution changes up to 4 times each calendar year.
- All full and part-time employees (faculty and staff)
- Temporary staff and faculty are not eligible for the 401(k) state match
The University of Memphis offers three long-term savings plans designed to supplement income after retirement. These plans are authorized under the following sections of the Internal Revenue Code.
- 403(b) - designed for educational and nonprofit institutions
- 401(k) - designed as a deferred compensation plan
- 457- also designed as a deferred compensation plan
Contributions
Employees may contribute a specified amount to the plans through salary reduction. Amounts contributed do not affect retirement or social security. Contributions and earnings of the plans are not subject to federal income tax until funds are withdrawn. Generally, withdrawals are not permitted before age 59 1/2 or retirement. Early withdrawals are subject to taxes and IRS regulation, and will be subject to a federal penalty. There is a minimum monthly contribution of $20. See table below for the annual maximum amounts that can tax deferred under these programs.
Annual Maximum Contribution Amounts:
Age |
401(k) and 403(b) combination |
457 |
|---|---|---|
2008-09
|
2008-09
|
|
Less than 50 |
$16,500
|
$16,500
|
50 or older |
$22,000
|
$22,000
|
401(k) and 457 The 401(k) and 457 are administered by Great West. Each program offers the same 11 investment options. With at least the minimum contribution in the 401(k), the State of TN will also contribute a match between $20 and $50 per month. There is not a match in the 457.
403(b) There is not a match in the 403(b). There are currently three companies that are available for investment in the 403(b). Click here for a list of those companies. The University of Memphis makes no recommendations as to companies with which to do business.
Forms
State of TN Deferred Compensation Forms
403(b) participation agreement form*
403(b) termination form
*Please contact the company for their specific enrollment form. This additional enrollment form must be completed before the 403(b) contribution can begin.