Savings Plans
The University offers three kinds of Tax-Deferred Plans: 403(b), 401(k) and 457. The differences are outlined in the side-by-
side Comparison Chart. The information contained herein is not intended to recommend that an employee
participate in the Tax Sheltered Annuity (TSA) or Savings Plus Program (SPP), nor will it give employees investment or tax advice.
Tax-Sheltered Annuity (TSA) Program 403(b)
- Eligible employees may participate in an IRC 403(b) Tax-Sheltered Annuity Plan.
- With exception of certain student classifications, all employees are eligible to participate in this program, including rehired annuitants (regardless
of age)
- All processing fees for the plan are paid by the CSU; there is no cost to the employee for participation.
- There is no employer matching contribution.
- The minimum monthly 403(b) contribution is $15 per month.
- The plan allows an employee to defer a maximum of $16,500 for 2009.
- The IRS now permits an employee to change his or her contribution at any time during the year.
Because the CSU has a monthly payroll cycle, employees may change their contribution amount each pay period if desired.
HOW TO ENROLL:
- Log onto the plan's master Administrator's official website AIG Retirement Services
- Once there, click I'm a new user.
- On the next screen, select California State University from the Group selection.
- Enter your last name, date of birth, and Social Security number in the designated fields and click Submit.
- Next you will be asked to create a secure password utilizing the password specifications listed. Once you create your password, click Enter.
- Your personal information and current total contribution (deferred amount) will be displayed.
Remember: You can direct your contribution to up to five different fund sponsors at any time.
- Choose the fund sponsor(s) to which your contributions will be directed.
Note: Before you complete this step, you may want to visit each fund sponsor's website and review the tools and resources offered by each fund sponsor (and, for some of the fund sponsors, talk with an on-campus representative).
- Indicate the dollar amount you wish to allocate to each fund sponsor you just selected. Then submit your contribution elections. At this point, you'll be given the opportunity to print a final confirmation of the transaction.
Note: Prior to leaving this page, write down the investment fund sponsor's plan number.
- Now that you've completed the enrollment in the CSU TSA Program, you're almost done. The final step is to set up an account with each fund sponsor you selected.
- To set up an account, click each fund sponso'r enrollment link. Elect how that fund sponsor will invest your contributions. Again, the tools and resources offered by the fund sponsors can help you decide which investments are right for you.
Over Age 50 Catch-Up Provision:
IRC Section 414(v), added under the Economic Growth and Tax Relief Reconciliation Act of
2001 (EGTRRA), created a catch-up provision available to individuals age 50 or older before the end of the plan year. It
allows them to make additional pre-tax elective deferrals to a 403(b) plan, a 401(k) plan and also $5,500 to a 457 plan over and above the
general contribution limits and without regard to previous contributions. The maximum amount of this additional contribution is
$5,500.
15-Year Rule Catch-Up Provision:
IRC Section 402(g)(7) "Catch-Up" election permits employees with 15 years of
service to contribute an additional $3,000 during the year, up to a maximum lifetime amount of $15,000. If you wish to contribute up to this amount you must demonstrate your eligibility for the catch-up
rule by completing a "15-Year Catch-Up Worksheet to Determine Eligibility for 403(b) Contributions over
$16,500". This worksheet must be completed every year you plan to contribute over the limit.
Savings Plus Program 401(k) and 457
The Savings Plus Program is a long-term savings program that gives members two ways to save for retirement. The State of California offers eligible employees two
plans authorized by the Internal Revenue Code: A Deferred Compensation plan under IRC Section 457, and a Thrift Plan authorized by IRC 401(k). The Department of
Personnel Administration (DPA) is responsible for administering the Savings Plus Program.
Plan Highlights:
- You will lower your federal and state income tax due to a reduction in your taxable income.
- There is a potential for rapid growth of your tax deferred investment earnings.
- A variety of investments options are available for you to choose from
- The plans offer convenient payroll deductions and program flexibility to manage your accounts.
- A maximum deduction of $16,500.
- There is no employer matching contribution.
Enrollment information:
- Log onto DPA Savings Plus Program official website
- Follow instructions to enroll on-line.
- Enrollment and changes are handled between you and the DPA.
ScholarShare College Savings Trust
Vendor: TIAA - CREF Tuition Financing, Inc.
Telephone: 866-842-2905 x5405
Website: http://www.scholarshare.com/
The Scholarshare Program is based upon the Internal Revenue code that will allow you to place money in a trust for your family's college expenses.
- The money you contribute is invested based upon your needs and investment philosophy.
- A minumum of $25 allows you to open a ScholarShare Account
- You can contribute as little as $15 per pay period.
- Qualified withdrawals are free from Federal and State Income Taxes.
Other Savings Plans
U.S. Savings Bonds
- Employees are eligible to purchase U.S. Savings Bonds (Series EE) through payroll deduction.
- The principal and interest are paid when the bond is cashed.
- Bonds are sent to employees as they are purchased.
- Can be replaced if lost, stolen or destroyed.
Enrollment information:
Arrowhead Credit Union (ACU)
The ACU offers CSU Employees Totally Free Checking Accounts, Regular Savings Accounts, Special Savings and many other services. The ACU enables you to save
conveniently, borrow at low interest rates and repay loans through payroll deduction.
For more information, visit the Arrowhead Credit Union website.
