Supplemental Retirement Plans

Understanding Your Supplemental Retirement Options

Supplemental plans allow you to save extra money for retirement. You pay no federal or state income taxes on the amount you contribute. Income taxes are paid only when the money is distributed (usually after retirement).  The university does not match your contributions.

Plans

The university offers to types of supplemental retirement plans

Eligibility

All university employees (full-time, part-time, hourly, or temporary) are eligible to participate in a 403(b) plan or 457(b) plan.

Contribution limits

You can contribute up to the IRS annual maximum each calendar year to each plan. For 2014 the contribution maximum is $17,500.

Catch up contributions
  • If you are age 50 or older you can make catch-up contribution of an additional $5,500 each calendar year for and annual maximum of $23,000. 
  • Both plans also allow additional catch-up contributions provisions.  To find out if you are eligible to make these additional  catch-up contributions, contact your supplemental retirement plan vendor directly. 
Note: Contributions to the 457(b) plan must be coordinated with any other 457(b) plans.

Hardship

While you are an active employee, you are not allowed to access your account except for the reason of 'Hardship' as defined by the IRS.

Loans

Typically you can borrow between $1,000 and $50,000 per plan. The amount you can borrow depends on your account balance available for loans. 

Compare supplemental retirement plans

 

 403(b) Tax-Deferred Annuity Plan  457(b) Deferred Compensation Plan  
InvestmentsYour contributions can be invested with:
  • Fidelity
  • TIAA CREFF
Your contributions are invested with:
  • Nationwide Retirement Solutions.
Enrollment and changesYou enroll and make changes through the Fidelity website.
  • You enroll online through the State of Arizona Deferred Compensation website.
  • You make changes through LOUIE Self Service.
DistributionsOnce you leave the university system you may request a distribution.
  • Distribution taken prior to age 59 1/2 that are not rolled over maybe subject to taxes and penalties.
  • Contact your investment manager to request a distribution.
Once you leave the university system you may request a distribution.
  • There is no early withdrawal penalty, however, distributions are subject to taxes.
  • Contact your investment manager to request a distribution.