What is the 457(b) plan?
The 457(b) is a tax-deferred compensation plan available to all eligible employees and allows you to make additional contributions toward your retirement, apart from any mandatory contributions to a retirement plan.
Eligible employees are those with income subject to tax withholding.
For 2020, TIAA is the only vendor for the 457(b) plan.
How much can you contribute?
Our 457(b) permits employee pre-tax or after-tax (Roth) contributions. There is no employer contribution to this plan. In 2020, you can contribute up to $19,500, which is the maximum employee contribution amount. The catch-up contribution for those age 50 and older is $6,500 for 2020.
How does participation in the 457(b) plan affect your VRSP?
You can choose to participate in the Voluntary Retirement Savings Plan (VRSP), the 457(b) plan, or both. The maximum allowable contribution is $19,500 to each plan or $39,000 total for both plans. If you elect to participate in both the VRSP and the 457(b), the VRSP deduction will occur first followed by the 457(b) deduction.
How do I enroll?
- Create your 457(b) account on the TIAA website first.
Note: if you are asked for a code when enrolling, please use 407892
- Once your TIAA account has been created, enroll online through Employee Self Service.
Select the Benefits and Wellness tile >> Retirement >> 457(b) Deferred Compensation Plan.
Eligible Bi-Weekly Employees
Employees paid bi-weekly or through a short-term appointment may not have access to the online 457(b) located in Employee Self Service, but can enroll by submitting a Salary Reduction Agreement to University Benefits. Please contact the Benefits Office to obtain this form.