Common use of VOLUNTARY & SUPPLEMENTAL RETIREMENT PLAN OPTIONS Clause in Contracts

VOLUNTARY & SUPPLEMENTAL RETIREMENT PLAN OPTIONS. Eligible employees may elect to participate in several tax deferred annuity and deferred compensation plans offered through Xxxxxxx State University under Internal Revenue Code provisions 403(b) and 457(b), respectively. Up to the IRS mandated maximum amount, these plans permit participants to tax shelter income into a number of investment vehicles (i.e. mutual funds). Taxes are deferred until the funds are withdrawn (usually upon retirement). Employees may participate in both the 403(b) and 457(b) plans. Xxxxxxx State does not contribute to either plan. Tax Sheltered Annuity Plan 403(b): In a 403(b) plan, interest and earnings accrue on a tax-deferred basis. Participants’ accounts grow tax-free until the funds are withdrawn. Penalties may incur if withdrawals are made prior to retirement. A list of approved vendors may be requested from the Department of Human Resources. Deferred Compensation Plan 457(b): Income may be invested in different investment options on a tax-deferred basis. Unlike the 403(b) plan, non- retirement withdrawals do not carry an early withdrawal penalty.

VOLUNTARY & SUPPLEMENTAL RETIREMENT PLAN OPTIONS. Eligible employees may elect to participate in several tax deferred annuity and deferred compensation plans offered through Xxxxxxx State University under Internal Revenue Code provisions 403(b) and 457(b), respectively. Up to the IRS mandated maximum amount, these plans permit participants to tax shelter income into a number of investment vehicles (i.e. i.e., mutual funds). Taxes are deferred until the funds are withdrawn (usually upon retirement). Employees may participate in both the 403(b) and 457(b) plans. Xxxxxxx State does not contribute to either plan. Tax Sheltered Annuity Plan 403(b): In a 403(b) planplans, interest and earnings accrue on a tax-deferred basis. Participants’ accounts grow tax-free until the funds are withdrawn. Penalties may incur if withdrawals are made prior to retirement. A list of approved vendors may be requested from the Department of Human Resources. Deferred Compensation Plan 457(b): Income may be invested in different investment options on a tax-deferred basis. Unlike the 403(b) plan, non- retirement withdrawals do not carry an early withdrawal penalty.