UGA Tax Deferred Savings Plans
UGA offers two voluntary supplemental retirement savings programs, the University of Georgia 403(b) Deferred Compensation Plan and the University of Georgia 457(b) Deferred Compensation Plan. These programs allow you to tax-defer income for retirement, through pre-tax payroll contributions.
Participants reduce their taxable income by making convenient payroll deductions with an authorized company. A broad range of investment options are available. As investments grow, the earnings are also tax-deferred until the money is withdrawn, presumably at retirement when income tax rates are generally lower.
Lincoln Financial Group is proud to be one of the authorized companies, offering the UGA Lincoln Alliance program.
To download a complete plan booklet and enrollment kit, click here for the 403(b) plan and click here for the 457(b) plan.
Why Participate?
There are many compelling reasons for enrolling in a UGA tax deferred savings plan. Just a few of them are:
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The employment plans in which you are required to participate are not designed to completely replace your pre-retirement income after you retire
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If you are concerned about what you may receive from Social Security, you can supplement it with benefits from these plans
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Your gross taxable income is reduced by the contributions you make in the year they are made
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Your money grows tax deferred which helps speed the growth your retirement savings
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It helps build the habit of paying yourself first and spending less than you earn
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You are always 100% vested in the full account balance and you control how it is invested
Eligibility
All employees of the UGA system are eligible to participate in either or both plans.
Contribution Changes
Participants can change contribution amounts or cease plan contributions any time. The proper change form must be submitted to the staff benefits office the month prior to the payroll period the change is to be effective. For example, to change contributions for May the form must be received by the staff benefits office by the end of April.
Contribution Limits
Employees are eligible to contribute any amount per pay period up to 100% of eligible compensation and subject to the following limits for 2009:
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$16,500 for the 403(b) Plan*
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$16,500 for the 457(b) Plan*
* Participants age 50 or older may contribute an additional $5,500.
Rolling Over Other Retirement Accounts
Both plans will accept transfers and rollovers of other retirement accounts. Your local plan representatives can assist you with consolidating your retirement assets. Click here to learn how to contact your local representative.
Withdrawal Options
Participants may take withdrawals from the plans under the following circumstances:
403(b) Plan
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Retirement
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Attainment of age 59½
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Separation from service with UGA
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Financial hardship (subject to restrictions)
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Distributions made to your beneficiaries upon your death
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Total and permanent disability
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Qualified domestic relations order (divorce payments to ex-spouse or children)
457(b) Plan
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Separation from service with UGA
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Total and permanent disability
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Qualified domestic relations order (divorce payments to ex-spouse or children)
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Distributions made to your beneficiaries upon your death
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Unforeseeable emergency (subject to restrictions)
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