Voluntary Retirement Plan
Eligible employees may sign up for the Voluntary Retirement Plan immediately. Utilization of the Voluntary Plan offers you a critical opportunity to build your retirement nest egg. Key to the growth of your accounts is the tax-deferred treatment of your contributions, as well as the investment allocations you choose.
To participate in the 403(b) Voluntary Retirement Plan, increase or decrease your contributions, or to change your investment elections, please log into Employee Self-Service at http://eserve.hr.tufts.edu
Contributions
You may elect to contribute an annual amount up to the Federal limit. The Benefits Office will notify you of your maximum federal limit anually. The contributions you make will be deducted from your pay on a pre-tax basis. In addition, taxes are deferred on the investment earnings that accumulate in your accounts. The tax-advantaged treatment of this Plan is a major advantage over ordinary savings and investment vehicles.
2008 Annual Maximums
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The annual maximum you may contribute to the Tufts University Voluntary
403 (b) Retirement Plan in calendar year 2008 is $15,500.
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If you will reach age 50 or older in 2008, you are eligible for the Age 50 Catch-up Limit provision and may contribute an additional $5,000 for the year.
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If you have 15 or more years of service with Tufts University, you may be eligible for the 15 year catch-up provision and may contribute an additional $3,000 for the year (up to a lifetime maximum of $15,000).
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In 2008, those employees age 50 and older who also have 15 years of service may take advantage of both the age and service catch-up provisions.
Vesting
You are always 100% vested in your contributions to the Voluntary Plan. This means if you leave the University, the value of your accounts, including earnings, is owned by you.
Payments and Distributions
Once you leave or retire from the University, a number of payment options are available for you to choose from. You elect the option that best meets your needs. In some circumstances you may receive distributions from your Plan while you are still employed with the University. These distribution options should be carefully explored since you will likely be subject to income and early withdrawal penalty taxes.
Loan Option
The Voluntary Retirement Plan also has a loan provision that allows you to receive funds during employment. You will be responsible for making monthly loan payments back to your Plan at a reasonable rate of interest. You will not be required to pay income taxes on the funds received since this is not a distribution.
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