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A 403(b) group supplemental retirement annuity (GSRA) plan allows you to invest in fixed and variable annuities and mutual funds in a tax-deferred account. You can participate in the tax-deferred retirement program by entering into a Salary Reduction Agreement. You are allowed to change your contribution amounts on a monthly basis; to be effective the month after you sign the election form.
Contributions into the plan are automatically deducted from your salary before you receive your paycheck and before you pay taxes on that income. Because you report less income, you pay fewer taxes on your earnings. Federal and State income taxes are deferred until you begin taking withdrawals. UNI does not contribute toward this program.
The maximum tax-deferred contributions allowed by the IRS for Calendar Year 2012 are as follows:
SRA Maximum: $17,000.00
Over 50 "Catch-Up" Maximum: $5,500.00
If you are age 50 or over, you are eligible to take advantage of the "Catch-up Provision" and may defer additional amounts.
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