Supplemental Retirement Plans


As an eligible employee of Augusta University, you are permitted to participate in a 403(b) and/or 457(b) tax deferred retirement program.
WHAT IS A 403(b) AND 457(b) PLAN?
WHY CONTRIBUTE TO A 403(b) AND/OR A 457(b)?
WHAT COMPANIES CAN I PARTICIPATE WITH?
HOW MUCH CAN I CONTRIBUTE?
HOW DO I GET MORE INFORMATION?

 

What is a 403(b) and 457(b) plan?

A 403(b) and a 457(b) plan is a tax-deferred retirement plan available to employees of educational institutions and certain non-profit organizations. In this plan, you can make pretax contributions for retirement savings.

 

Why contribute to a 403(b) and/or a 457(b)?

Participating in your plan can provide a number of benefits including:

  • LOWER TAXES TODAY. Your 403(b) and/or 457(b) contributions are made on a pre-tax basis which can greatly reduce your current income tax bill. For example, if your federal marginal income tax rate is 25%, and if you contribute $100 a month to a 403(b) and/or a 457(b) plan, you've reduced your federal income taxes by roughly $25 (assuming a 25% tax bracket). In effect, your $100 contribution costs you only $75. The tax savings grow with the size of your 403(b) and/or 457(b) contribution.
  • TAX-DEFERRED GROWTH. Your account in the 403(b) and/or 457(b) plan is tax-deferred. This means your account can grow tax-free until time of withdrawal.
  • ENHANCED RETIREMENT. Other sources of retirement income, including state pension plans and, Social Security, often do not adequately replace a person's salary upon retirement. A 403(b) and/or 457(b) plan can provide a healthy supplement to an employee's retirement income.

Why contribute to a Roth 403(b) and/or a 457(b)?

  • Contribute after-tax dollars.
  • Take tax-free distributions if the following conditions are met:
    • You attain age 59 1/2; or
    • Your total disability or death
    • If withdrawn after the end of the five-year period beginning with the first year for which a Roth contribution was made to the plan; and
  • Reduce taxable income during retirement and possibly help reduce taxation of Social Security benefits under current law.

 

What companies can I participate with?

Plan Type Plan Number
403(b) 54314
457(b) 61819
  • VALIC - (706-722-4600)

Plan Type Group Number Plan Number
403(b) 04262 001
457(b) 04262 003
Plan Type Plan Number
403(b) 100401
457(b) 100402
 
 
How much can I contribute ?

403(b),457(b), Roth 403(b), and 457(b) contributions for Augusta University employees in 2017 are generally limited to 95% of full gross salary not to exceed $18,000 for employees less than age of 50, or 95% of full gross salary not to exceed $24,000 for employees who are projected to attain age 50 or more by December 31, 2017. (Age-based catch-up under section 414(v)).

 

How do I get more information?

To obtain more information, including information about how to participate, and about the savings products made available under the plan, contact the Benefits and Data Management Staff at 706/721-3770.

 

Salary Reduction Agreements