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Your Retirement Benefits
HOW MUCH CAN I CONTRIBUTE?
Both programs allow you to contribute up to $19,500 or 100% of your salary, whichever is less. If you are age 50 or older, both plans offer you the opportunity to make additional contributions of up to $6,500 through the “catch-up” provision.
If you are an employee whose service with the College is longer than 15 years, you may be able to defer an additional $3,000 per year, up to a lifetime max of $15,000, in the 403(b) plan. To determine if you are eligible for an additional deferral, speak with your tax accountant, financial planner or 403(b) representative.
If you are nearing retirement, you may be able to contribute more funds with the 457(b) plan than with the 403(b) plan. During the three years prior to your normal Social Security retirement age, you may be eligible to defer an additional $19,500 under the “final three-year” provision. Participants who take advantage of this provision cannot also take advantage of the catch-up provision. To determine if you are eligible for an additional deferral, speak with your tax accountant, financial planner or 457(b) representative.
As an employee of a public higher education institution, you belong to a retirement plan that is part of a public retirement system, or Alternative Retirement Plan, rather than Social Security. You and the College both make contributions to your retirement benefit at a rate specified by the Ohio Revised Code. You also have access to voluntary retirement savings vehicles through Tri-C. Read on for more information about these plans.
Voluntary Retirement Savings Plans
The College offers 403(b), 457(b) and Roth plan options. Participation in these plans is optional. Funds accumulated in these accounts can be used to supplement retirement benefits from other sources such as OPERS, STRS, ARP or Social Security. Contributions to the 403(b) and 457(b) reduce taxable wages for federal and state purposes but do not reduce wages for determining OPERS, STRS or ARP deductions. The College does not match contributions to voluntary retirement plans. There are several approved 403(b) and 457(b) vendors for you to choose from. A list of approved vendors is available on the Total Rewards KWeb page.
403(b) Tax-Deferred Annuity Plan
A 403(b) plan is a defined contribution retirement plan that allows you to make pre-tax contributions to a 403(b) account in which funds grow tax-deferred until distribution. Distributions at age 59½ or later will be distributed without penalty and taxed at your ordinary tax rate. Withdrawals prior to age 59½ are subject to IRS regulations. If you make withdrawals before age 59½, these will be taxed as ordinary income and you may be subject to an additional 10% early withdrawal penalty.
457(b) Deferred Compensation Plan
This is a defined contribution retirement plan that allows employees to make pre-tax contributions to an account. These funds grow tax-deferred until you withdraw them at retirement or separation of employment. Distribution options are available at separation or when you reach age 70½. Upon distribution, funds are taxed at your ordinary tax rate. Roth 457(b) contributions limits are the same as the traditional 457(b) limits.
457(b) Roth Plan Options
In addition to pretax deferrals, our two 457(b) plan vendors — Ohio Public Employees Deferred Compensation and Voya — also permit Roth 457(b) deferrals, which are made on an after-tax basis. Roth deferrals and associated earnings can be withdrawn tax-free in retirement if qualified distribution requirements are met.
Retirement Manager
Retirement Manager is a convenient, secure, web-based access point from which you can manage your 403(b) plan and Voya Financial 457(b) accounts at any time. The Ohio Deferred Compensation 457(b) and Roth 457(b) plans are excluded from management via Retirement Manager. Users of these plans should continue to access them online or via phone. Contribution changes must be made online through Retirement Manager. Visit myretirementmanager.com to get started.
