403(b) Plan Information
TIAA is the sole record keeper for the University's retirement plan.
The Plan is a tax-favored retirement plan that the University of Richmond (the "University") has established for the benefit of its employees. The Plan allows all employees to make pre- and/or post-tax contributions out of their pay. In addition, the University makes certain types of employer contributions under the Plan for employees who meet specified eligibility requirements. Employees who participate in the Plan are permitted to elect how these contributions will be invested. The Plan allows you to invest these contributions in one or more funds provided by the fund sponsors available under the Plan.
The University of Richmond Retirement Plan is a defined contribution program governed by Sections 403(b) and 403(b)(7) of the Internal Revenue Code.
The Plan consists of two parts. The first part permits all employees to make pre- and/or post-tax contributions out of their pay through salary reduction agreements. The second part of the Plan permits employees who meet certain eligibility requirements to receive employer contributions. The Plan Administrator will notify you when you are eligible to participate in the Plan. All determinations about your eligibility and participation in the Plan will be made by the University. The University will base its determinations on its records and the official plan document on file with the Plan Administrator.
The employee may change their fund choices at any time.
To enroll online or make fund changes, go to TIAA.
All employees except for student employees are eligible to make pre- and/or post-tax contributions to the Plan as soon as they begin employment. Pre- and/or post-tax employee contributions are referred to under the plan as "salary reduction contributions."
Effective April 1, 2017, the University introduced a Roth post-tax contribution option. The Roth contribution option is another way for you to save for your financial future.
Here’s how it works:
- With the Roth option, you can contribute after-tax dollars. The savings with the Roth option and any attributed earnings will be tax-free at withdrawal when you reach age 59½ provided the contributions have been in the plan for five consecutive years.
- The combination of any pre-tax contributions and Roth contributions are together subject to the annual deferral limitations set by the IRS. For 2017, the limits are $18,000 for most and $24,000 if you are over the age of 50.
- For more information on the Roth option, see the TIAA Roth Flyer.
Eligibility for Employer Contributions
All employees who have completed a year of service, and have reached age 21, are eligible to participate in the employer contribution portion of the Plan. Once you have satisfied these eligibility requirements, you must complete the online enrollment process to participate in this portion of the Plan. If you do not enroll, an account will be established for you and the University will make the 5% contribution into the Target Date Funds closest to the date of your retirement. The year of service requirement will be waived if a new Staff member has been employed at an institution of higher education for the full 12 months immediately preceding his or her date of hire. In the case of a faculty member, the year of service requirement will be waived if they were employed at an institution of higher education for the full academic year immediately preceding his or her employment with the University.
If you are eligible to participate in the employer contribution portion of the plan, the University may make "basic contributions" and "matching contributions" on your behalf. All employer contributions are pre-tax.
Basic contributions are contributions made by the University on behalf of each eligible employee who is credited with a year of service during the plan year. The basic contribution is 5 percent of your base salary paid during each pay period in which you make a salary reduction contribution. No contribution is required by the employee to receive this contribution on his or her behalf.
Matching contributions are contributions made by the University on behalf of each eligible employee who is credited with a year of service during the plan year and has made a salary reduction contribution during the plan year. If you satisfy these criteria, the University will match 100 percent of your salary reduction contributions made in whole percentages up to 5 percent of your base salary paid during the plan year. Therefore, the total maximum contribution that will be made by the University on the employee's behalf is 10 percent of the participant's base salary paid during the plan year.
All employee and employer contributions are vested immediately.
The retirement plan has been established to assist with income security during retirement. Upon retirement you may access your retirement accumulations by establishing an annuity (monthly or periodic payments), partial lump sum distributions or a total lump sum distribution. Additional questions on annuity options or lump sum distributions may be directed to TIAA at 1-800-842-2776. Should an employee leave University employment, his or her retirement accumulations may be left with TIAA. The employee may rollover his or her retirement accumulations to another vendor or withdraw the retirement accumulations. If the employee is under age 59 1/2 and elects a cash distribution of his or her retirement account, then he or she will be penalized for an early retirement withdrawal as dictated by federal laws.
There may be restrictions on withdrawals from the TIAA Guaranteed Fund. Please contact TIAA at 1-800-842-2776 for additional information.