Wednesday, August 5, 2015

Administration

 

Supplemental Retirement (457, Roth 457, 403(b), Roth 403(b)) Plans


The Nevada system of Higher Education (NSHE) offers employees the opportunity to set aside a portion of their earnings on a tax-deferred basis into a variety of investment vehicles provided through approved Fund Sponsors. The current approved fund sponsor for the 403(b) Plan is TIAA-CREF . The current approved fund sponsor for the 457 Deferred Compensation Plan is Voya. We also list on this page former fund sponsors for reference.

The minimum employee contribution is $25.00 per month for the 457 Plan, and $16.67 per month for the 403(b) Plan. Please see the comparison chart near the bottom of this page for further differences between the 403(b) and 457 Plans. As of January 1, 2015, VALIC and Fidelity are no longer available for the 403(b) Plan and The Hartford/MassMutual is no longer available for the 457 Plan. ING has a new name which is Voya. For the 457 Deferred Compensation Plan Voya is the only current approved fund sponsor.

 

403(b) Tax Sheltered Annuity

Enrollment/Change/Cancellation form

403(b) Tax Sheltered Annuity Plan Guide

VALIC

Fidelity Investments

TIAA-CREF

Vendor Contact Information for 403(b) Plan


Vendor Name

Website

Phone Number

 


www.valic.com

(702) 796-0047

 

plan.fidelity.com/nshe

(800) 343-0860

 

www.tiaa-cref.org
Customer Service:
(800) 842-2252

Kristopher Lanzer
(702) 990-3692
kristofer.lanzer@tiaa-cref.org

 

Roth 403(b)

The Nevada system of Higher Education (NSHE) began offering a voluntary Roth 403(b) option to all eligible employees effective April 1, 2008.  This option provides our employees with another vehicle for saving towards their retirement.  Under a Roth 403(b) plan, an employee contributes on an after tax basis.  Distributions from the account will be tax free and without penalty when the employee reaches age 59 ½ and the distribution is taken five years after the first Roth contribution was made.

Enrollment/Change/Cancellation form

 

Roth 457

The Roth 457 Plan functions similarly to the 403B Roth plan.   

  • The contribution to the traditional 457 and the Roth 457 will be subject to the annual contribution limits as one plan.
  • Contributions in the Roth 457 will need to stay in that plan for at least 5 years in order for the income to not be considered taxable upon distribution.


Please see the following link to Nevada Public Employees’ Deferred Compensation Program for information and the FAQ’s about the Roth 457 Plan:
http://defcomp.nv.gov

 

Vendor Contact Information for 457 Plan


Vendor Name

Website

Phone Number

Voya Financial

www.voyaretirementplans.com
Customer Service:
(800) 584-6001

Anthony Cardone
(702) 812-8200
Anthony.Cardone@voyafa.com


VoyaEzEnrollment.pdf

VoyaPayrollContribution.pdf

 

Comparison Chart / 403(b) Plan vs 457 Plan

 

403(b)

457

Employer Involvement Generally, employer involvement is very limited. You control how your monies are invested. Generally, employer involvement is very limited.  You control how your monies are invested.
Fund Sponsors TIAA-CREF, Fidelity Investments and AIG Retirement Hartford and ING
Minimum Contribution $16.67 per month pre-tax $25.00 per month pre-tax
Maximum Annual Contribution Up to $18,000 in employee deferrals in 2015 pre-tax Up to $18,000 total in employer and employee contributions in 2015 pre-tax.
Definition of Includible Compensation

Compensation for most recent one-year period of full-time equivalent service reduced by 414(h) pick-up contributions, not reduced by deferrals.

Calendar year compensation reduced by all pre-tax contributions, including cafeteria plan contributions, 414(h) pick-up contributions and voluntary deferrals.

Required Distributions at Age 70 ½
Can aggregate all 403(b) accounts and take distributions from any one or more accounts. Required distributions from the 457 plan.
Loans Loans available, if contract permits, except under Fidelity. Refer to Plan Guide for additional information. Loans available, if plan permits. Refer to the company plan document for additional information.
In-Service Withdrawals In-service withdrawals may be permitted if you are at least age 59 ½ or if your 403(b) annuity contains deferrals made prior to 1989.* Refer to Plan Guide for additional information. To the extent provided in the plan, in-service withdrawals may be permitted if your account value is $5,000 or less (provided certain requirements are met) or at age 70 ½.**
Withdrawals Withdrawals permitted due to Hardship, typically based upon participant certification.* Withdrawals due to Unforeseeable Emergency – provided that very stringent criteria are satisfied and employer approves.**
Plan-Based Catch-Up Provisions No Up to twice that applicable dollar limit for employees within three years of normal retirement age.  Limited to the total of underutilized contribution limits in prior years of service with this employer or another employer within the state when a plan was available to that employee.
Age-Based Catch-Up Provisions Allows for a catch up provision if you are 50+ years of $6,000. Allows for a catch up provision if you are 50+ years of $6,000.
Combining Plan-Specific and Age-Based Catch-Up Contributions Not allowed Allowed
Transfers to State Defined Benefit Plan to Purchase Service Credits Permitted if plan or act allows
Permitted if plan or contract allows
Qualifying Events for Distribution
  • Separation from service
  • Age 59½
  • Permanent and Total Disability
  • Financial Hardship (to purchase a primary residence, for example)
  • Death of participant
  • Separation from service
  • Retirement
  • Unforeseeable Emergency (unexpected illness, for example)
  • Death of participant
Employer Post-Separation Contributions
Permitted for up to 5 years
Not permitted
Federal Withholding on Distributions Mandatory 20% federal withholding on all distributions Mandatory 20% federal withholding on most governmental distributions
Portable (Can Move Assets to New Employer or IRA) No Yes
Incoming 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.

*  Keep in mind that in-service withdrawals are subject to a 10% premature distribution penalty unless an exemption applies

** A 10% premature distribution penalty does not apply to withdrawals, other than withdrawals from a non-457 rollover account.

If you have any questions or comments about any of the information contained on this or other Human Resources pages, please e-mail