· Post-Tax (Roth) Contributions - - Federal and State income taxes are withheld from Roth contributions at the time that they are contributed to the Plan. However, contributions and any earnings thereon are not subject to Federal and State income taxes upon distribution if a five year period has passed since Roth contributions were first made to the Plan and the distribution is a qualified distribution. A qualified distribution is a distribution (i) made on or after the date on which the participant attains age 59 ½, (ii) made to a beneficiary on or after the death of the participant, or (iii) attributable to the participant being disabled.
Employee contributions to the Plan can be allocated among the investment options offered by any approved vendor under the Plan. Employees are 100% vested in their accounts under the Plan at all times.
Annual contributions to the Plan are limited per IRS regulations. The contribution limits for the 2012 calendar year are:
Basic Elective Contribution Limit - $17,000
Age 50+ Catch-up Contribution - $5,500
15 Years of Service Catch-up Contribution - $3,000*
* The 15 years of service catch-up contribution applies before the age 50+ catch-up, and is based on a formula that takes into account all past contributions to the Plan and the employee's total years of service to the University. The maximum 15 years of service catch-up available is $3,000 per year up to a $15,000 lifetime benefit, but an employee's actual catch-up may be lower than this maximum. If you wish to defer more than $17,000 ($22,500 if age 50 or older), please contact the UPB Benefits Services office on your campus to determine if you are eligible for the 15 years of service catch-up.
Eligible employees may begin participating in the Plan at any time. To enroll in the Plan, an employee must complete both (i) an application with an approved vendor to open an account and (ii) a Salary Reduction and/or Redirection Agreement (SRA) to elect the contribution amount. Employees can access the 403(b) Plan Enrollment Guide online. The SRA can be completed online. Contributions may be designated as a percent of salary or as a flat dollar amount. The SRA will apply only to amounts earned after enrolling in the Plan, and an employee's election under the SRA will continue until the SRA is modified or revoked by the employee.
To Modify a Deferral Election
Employees may increase, decrease or stop their contributions to the Plan at any time. Employees may also change the approved vendor to which their contributions are made at any time. Access the SRA using the link provided above to make these changes.
The current approved vendors under the Plan are Fidelity Investments and TIAA-CREF. Employees should contact each vendor for information about the Plan investment options and services it offers.
· Fidelity Investments - - Fidelity offers a wide range of mutual funds as Plan investment options. Instructions for opening a Plan account online with Fidelity are available.
· TIAA-CREF - - TIAA-CREF offers a wide range of fixed and variable annuities and mutual funds as Plan investment options. Instructions for opening a Plan account online with TIAA-CREF are available.
Contact your campus UPB Benefits Services office or one of the approved vendors directly with questions or for help enrolling in the Plan. A paper copy of this notice is also available at your campus UPB Benefits Services office.
UPB Benefits Services Offices
· Email: firstname.lastname@example.org
· Urbana: 217-333-3111
· Chicago: 312-996-6471
· Springfield: 217-206-7144
· Fidelity Investments: 800-343-0860
· TIAA-CREF: 800-842-2776