All employees are eligible to make tax-deferred contributions to a 403(b) tax-deferred annuity plan and/or a 457(b) deferred compensation plan. Contributions to these supplemental retirement plans are in addition to and separate from contributions that are made to your mandatory Penn State retirement plan.
You may begin making voluntary contributions to a supplemental retirement plan at any time during the year. You also may change or stop your voluntary contributions at any time.
All questions regarding Penn State Supplemental Retirement Plans should be directed to TIAA-CREF at 1-800-842-2252, Mon through Fri, 8 am - 10pm and Sat from 9 am - 6pm.
|Provision||403(b) Tax-Deferred Annuity||457(b) Deferred Compensation|
|Contribution Limits||Annual salary reduction contributions are limited to
$18,000 in 2015
|Annual salary reduction contributions are limited to
$18,000 in 2015
|Age 50 Catch-up Provision||If you are age 50 or older, you may contribute an additional $6,000 above the maximum annual deferral amount.
|Distributions||Distributions must meet a qualifying event:
||Distribution must meet a qualifying event:
|Rollovers||Rollovers are allowed if the guidelines of a qualifying event are met. Employer approval may be required.||Rollovers are allowed from a governmental plan if the guidelines of a qualifying event are met. Employer approval may be required.|
|Additional Catch-up Provision
(Cannot be used with the Age 50 and Over Catch-up Provision)
|"3 Year Rule": An additional amount up to $12,000* may be available if you have not deferred in previous years when you were eligible for a 457(b) Plan. This provision may be used only in the three years before you attain normal retirement age.|
Loans are available to the extent permitted by the plans. Effective January 1, 2015 the following provisions apply to the loan policy:
|Withdrawals While Employed at Penn State
(Considered only when an employee has no other resources, including Plan loans)
|Withdrawals can be made any time after age 59½ or in the event of a Qualified Financial Hardship: Unreimbursed medical expenses, purchase of a primary residence, tuition expenses, funeral expenses, or prevention of a foreclosure or eviction.||Withdrawals can be made any time after age 70½ or in the event of unforeseen emergencies: unreimbursed medical expenses, casualty loss, sudden and unforeseeable emergency, funeral expenses, or prevention of a foreclosure or eviction.|
- Determine if you will contribute to a 403(b) tax-deferred annuity, a 457(b) deferred compensation plan, or both.
- Complete an enrollment form. TIAA-CREF 403(b) tax-deferred annuity and TIAA-CREF 457(b) deferred compensation applications are available online.
- Regardless of which option you choose, you must complete a Voluntary Salary Reduction Agreement indicating the amount of your contribution from each pay.
- During your enrollment, you will be able to select how your contributions will be allocated among investment options. You will also be asked to select your beneficiaries.
Managing Your Contributions/Investments
To Change Your Contributions
Complete a new Voluntary Salary Reduction Agreement indicating the amount of your new contribution from each pay.
To Manage Your Investments
You can change your investment selection at any time by logging into your TIAA-CREF account, or by phone at 800-842-2252.