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In addition to the mandatory retirement plans to which you contribute, you may also choose to participate in the voluntary retirement plans offered by Auburn University.
There are two plan options from which to choose: the 403(b) Tax Deferred Annuity Plan or the 457(b) Deferred Compensation Plan. Visit the Side by Side Comparison of 403(b) Tax Deferred Annuity Plan and 457(b) Deferred Compensation Plan along with the Summary of Plan Services and Cost to learn more about the two plan options. Read below for additional plan details.
University personnel have a means of deferring federal and state income tax that is unique to colleges, universities and other nonprofit organizations. Under Section 403(b) of the Internal Revenue Code, tax deferred annuity plans offer individuals tax and retirement benefit advantages.
These plans reduce the employee's gross wages before federal and state taxes are computed. Theoretically, when these funds are withdrawn later in life, the employee is in a lower income tax bracket. A Summary Explanation of the Plan can be downloaded by selecting: 403(b) Plan Summary Explanation.
Employees are divided into the following two classes:
Excluded employees are not eligible to contribute to the plan. An excluded employee is a former employee, an independent contractor or a student-employee who is enrolled and regularly attending classes at Auburn University.
Federal law limits the amount you may elect to defer under this Plan during the 2020 calendar year to $19,500. If you are over age 50 or turn age 50 during the 2020 calendar year, you may defer an additional amount up to $6,000. These dollar limits may change each year with cost-of-living adjustments issued by the IRS in October.
Please note that the amount you defer must be made in a whole percentage and sent to one vendor at a time. You can increase, decrease or stop your deferral contribution at any time. After completing the appropriate forms, requests shall become effective on the first day of the month following receipt of such change, or as soon thereafter as administratively practicable.
Participants who wish to elect to defer 50 percent or more of his or her Includible Compensation must first contact Auburn University Human Resources to confirm adequate remaining Includible Compensation to pay for all other benefits for each pay period.
Employer Matching Contributions will be made for eligible employees in amounts equal to 100 percent; of Elective Deferral contributions up to 5 percent of your Plan compensation. The Matching Contribution cannot exceed $1,650 for any Plan Year (calendar year).
Employee Deferrals are always 100 percent vested. The Employer Matching contribution is subject to the following vesting schedule:
There are several investment options available at four vendors. These options give the investor a wide spectrum of investments ranging from fixed and variable annuities to mutual funds. Detailed information may be obtained by contacting the approved companies listed below:
(404) 330-4815
www.netbenefits.com/auburn
(404) 625-8402
www.auburnlincoln.com
Service and Scheduling Group – (800) 732-8353
www.tiaa.org/schedulenow
(334) 734-0823 (Cindy), (334) 201-4861 (Brian), or (334) 740-7835/(334) 703-5657 (Jessica)
www.valic.com/auburn
(334) 235-0654
Retirement plan advisers are available by appointment to help Auburn University employees review and better understand the University's voluntary retirement plans. Calendar
Deferred Compensation plans are another investment vehicle to defer current income from federal and state income taxation. A Summary Explanation of the Plan can be downloaded by selecting: 457(b) Plan Summary Explanation.
If you are a full-time, part-time, or temporary employee, you are eligible to make Elective Deferrals under the Plan out of your own compensation.
Excluded employees are not eligible to contribute to the plan. Under the plan, an excluded employee is a former employee, an independent contractor or a student-employee who is enrolled and regularly attending classes at Auburn University.
In addition to contributions made to the 403(b) Plan, Federal law limits the amount you may elect to defer under this Plan during the 2020 calendar year to $19,500. If you are over age 50 or turn age 50 during the 2020 calendar year, you may defer an additional amount up to $6,000. These dollar limits may change each year with cost-of-living adjustments issued by the IRS in October.
Please note that the amount you defer must be made in a whole percentage and sent to one vendor at a time. You can increase, decrease or stop your deferral contribution at any time. After completing the appropriate forms, requests shall become effective on the first day of the month following receipt of such change, or as soon thereafter as administratively practicable. Participants who wish to elect to defer 50% or more of his or her Includible Compensation must first contact Auburn University Human Resources to confirm adequate remaining Includible Compensation to pay for all other benefits for each pay period.
You will not receive an Employer Contribution under the 457(b) Plan.
Employee Deferrals are always 100 percent vested. No employer contribution is made to the 457(b) Plan
The Plan has numerous investment options available at three vendors. These options give the investor a wide spectrum of investments ranging from fixed and variable annuities to mutual funds. Detailed information may be obtained by contacting the approved companies listed below:
(800) 842-2003, ext. 263508 (Jim), (205) 582-6908 (Jared), or (205) 582-6922 (Brad)
As an employee of Auburn University, qualified employees may also participate in the 457(b) plan offered by the Retirement System of Alabama, the RSA-1. Additional information may be obtained by contacting RSA at (877) 517-0020 or www.rsa-al.gov.
An eligible employee may enroll in the voluntary retirement plans at any time during the year. Enrolling requires completion of a Salary Deferral Agreement as well as new account forms with the provider of your choice.
An on-line calculator is available to assist you with determining your contribution percentages and completing the Salary Deferral Agreement form. To access the on-line calculator, visit How To Complete New Salary Deferral Agreements, or access blank forms for 403(b) and 457(b) here.
Salary Deferral Agreements and new account forms are also available at Auburn University Human Resources located at 1550 East Glenn Avenue. Please use the Secure Document website to upload the forms, or you can return them to 1550 East Glenn Avenue.
For employees at AUM, forms can be obtained at the AUM Human Resources Office located at 705 Library Tower.
