Benefits of Participating
- Allows you to increase your retirement income through regular, planned investing.
- Participating with before-tax contributions, you lower your federal and state taxable wages (this does not apply to Social Security or Medicare taxable wages)
Pre-tax vs. After-tax
The pre-tax investment allows your contributions and earnings to grow over time while deferring the payment of taxes until you withdraw the funds.
After-tax Roth contributions allow your already taxed contributions and earnings to grow over time with no tax liabilities upon withdrawal.
Two Plan Options Available
You can choose to contribute to one of these plans or maximize your savings by using both plans.
| 457(b) Deferred Compensation Plan |
403(b) Voluntary Retirement Savings Account (VRSP) |
|
|---|---|---|
| Companies |
One vendor available:
|
Six vendors to choose from: |
| Contributions |
can make pre-tax or after-tax contributions |
can make pre-tax or after-tax contributions |
| Catch-up | Catch-up contributions are allowed | Catch-up contributions are allowed |
| UI Contributions | No | No |
| Required Participation | No, voluntary participation | No, voluntary participation |
| Enrollment | Enroll with TIAA first and then complete enrollment in Employee Self Service | Enroll with the selected company of choice and to complete enrollment, finish enrollment in Employee Self Service |
Eligibility
The following groups are eligible to enroll:
- Regular Faculty and Staff with taxable wages
- House Staff
- Postdoc Research Scholars
- Research Interns
- Temporary Staff
Enrollment
Enrollment or changes will take effect the following month, depending on the timing of your elections. For example, if you submit your enrollment and/changes before Payroll Cutoff, which is always 5 business days before the last day of the month, you should see your new elections on the next paycheck.
All regular Faculty, Staff, and House Staff members should complete their enrollment and/or changes within Employee Self Service. If you are a bi-weekly employee, please contact University Benefits for a paper form.
- VRSP Enrollment Instructions in Employee Self Service
- Voluntary Retirement Savings Program, Calculation Worksheet (xlsx)
Purchasing U.S. Treasury Products through Payroll Deduction
Treasury Direct (U. S. Savings Bonds)
TreasuryDirect lets you buy and redeem securities, including savings bonds, directly from the U.S. Department of the Treasury in paperless electronic form. To participate in payroll deductions for TreasuryDirect, participants need first to open a TreasuryDirect account.
Once your account is established, you may log in to Employee Self Service to establish your monthly payroll deduction in any amount you choose. "Time & Pay" tile >> "Giving" >> "Savings Bond Enrollment" and then complete the online form.
For more specific information, please reach out to the Payroll Services Office at payroll-services@uiowa.edu.