VMI offers four optional supplemental retirement annuity plans (covered under IRS code 403b) for employees who wish to take advantage of the tax savings and tax deferral benefits of these plans. The 403(b) providers are: Fidelity, TIAA-CREF, VALIC and AXA/Equitable. Contributions to an SRA are set aside from the rest of your income before your taxes are calculated and you pay no taxes on your SRA earnings until your receive them as income. An SRA plan is entirely optional and, subject to federal rules and the rules of the company you select for your SRA, you may enroll or discontinue participation at any time. You may contribute as little as $10 per pay period ($20 per month). When you enroll in a 403b plan, you are eligible to participate in the “Cash Match Program” where VMI will provide a 50% match of your monthly contribution to a participating provider up to a maximum of a $40 match per month (to receive the full $40 monthly match you will have to contribute $80 per month to your account).
Employees may contribute up to 100% of their gross annual salary not to exceed $18,000 if under age 50. If 50 years old or more, participants may shelter $24,000 for the 2015 tax year. Anyone receiving a W2 form from VMI may participate in this program. Contributions may be changed at any time by completing a new TSA Salary Reduction Agreement. Because this is a retirement savings, there is a penalty for withdrawal of funds before the age of 59 1/2. Contact the VMI Benefits Office for more details.
To enroll, complete a Salary Reduction Agreement and follow the enrollment instructions on Page 2.
- Fidelity Investments 403(b) and Cash Match Plan Investment Guides
- TIAA-CREF 403(b) and Cash Match Plan Highlights