Supplemental Retirement Accounts
Supplemental Retirement 403(b) and 457(b)
WVU provides supplemental, voluntary tax-deferred retirement plan(s), a
403(b) plan and a
These plans allow the benefits-eligible employees to supplement their retirement
savings with the advantages of tax-deferral and payroll deduction. Non-benefits-eligible
employees are also eligible to contribute to any of WVU's supplemental retirement
Also available is a 403(b) Roth plan, that allows post-tax contributions.WVU 403(b) and 457(b) At a Glance
The 403(b) - Pre-Tax Contributions
The 403(b) provides an opportunity for both benefits-eligible and
non-benefits-eligible employees to voluntarily save for retirement. Just like the
401(a) plan, contributions are tax deferred and made on a
pre-tax basis. Unlike the 401(a) plan however, there is no employer matching
contribution. All employee contributions are immediately 100% vested.
Both loans and hardship withdrawals are available with the 403(b) plan. In-service withdrawals are also available from the plan once the participant has attained the age of 59 1/2. The IRS-imposed 10% penalty rules for pre-age 59 1/2 withdrawals are the same as the 401(a) plan. There is no minimum contribution and paycheck deduction changes may be made at any time.
Roth 403(b) - Post-tax Contributions
On Sept. 1, 2011, West Virginia University introduced the Roth 403(b) supplemental retirement account available to all employees through TIAA. With this option, you may:
- Contribute after-tax dollars;
- Enjoy tax-free distributions, without penalty, when you are age 59 1/2 or older and when you take a distribution five years after you made the first Roth contribution to the contract. Withdrawals of earnings prior to age 59 1/2 are subject to ordinary income tax and a 10% penalty may apply.
- Rollover assets into a Roth Individual Retirement Account (IRA), or into/from another Roth 403(b) Supplemental Plan that accepts such assets. (Rollovers and withdrawals are subject to the provisions of your retirement plan.)
457(b) Plan - Pre-Tax Contributions
The 457(b) plan provides an opportunity for both benefits-eligible and non-benefits-eligible employees to voluntarily save for retirement. Just like the 401(a) plan, contributions are tax deferred and made on a pre-tax basis. Unlike the 401(a) plan however, there is no employer matching contribution. All employee contributions are immediately 100% vested. Loans are available with the 457(b) plan. No in-service withdrawals are available from the plan. The IRS-imposed 10% penalty for pre-age 59 1/2 withdrawals does not apply to the 457(b) plan. U pon separation from service, the participant may begin ann uity income or ma ke a cash withdrawal. T here is no minimum contribution an d paycheck deduction changes may be made at any time.
Supplemental Maximum ContributionsContributions are limited to a maximum established annually by the Internal Revenue Service (IRS).
When enrolling for the first time in any Supplemental Retirement Account
When enrolling in a 403(b) or 457(b) or both with TIAA, employees will need to complete a Salary Reduction Agreement . Once your first deduction has occurred, create a TIAA account login at www.tiaa-cref.com/wvu and allocate your dollars.
Note: If you already have an existing 403(b) or 457(b) account with TIAA complete the Salary Reduction Agreement to either change your current deduction or re-start the salary reductions.
At the current time, Roth contributions are only available through TIAA. If you have questions regarding Roth 403(b) contributions, please contact TIAA at 800-842-2252.
Health Science Center employees with Dual Appointments
HSC staff with both West Virginia University and University Health Associates (Medical Corp. included) appointments should consider enrolling in the 457(b) plan with WVU, and the 403(b) plan with UHA. If the employee does have an appointment with WVU and UHA (Dental Corp.) but does not have a 403(b) available to him, then the employee can enroll in WVU’s 403(b) plan. Important to note is the employee does not want to be enrolled in 403(b) plans with each employer and “max out” under both 403(b) plans.