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403(b) Retirement Plan Provisions The University’s retirement income plan, provides faculty and staff with the opportunity to accumulate tax-deferred retirement savings. Employee Contributions Employees may defer part of their salary into the 403(b) Plan through pretax payroll deduction instead of receiving it as cash compensation. When an employee makes such a contribution into the Plan, the taxation on the amount of the contribution is tax-deferred. The term, “tax-deferred” means that amounts deducted from a participant’s paycheck are not subject to state or federal income taxes at the time of the payroll deduction. Earnings on the money contributed are also tax-deferred. Accumulations in the plan are taxed only when withdrawn, based on the federal and state tax rate in effect for the individual at the time of withdrawal. DePaul Contributions Employees who are eligible to make salary deferrals are also eligible to receive an 8% University matching contribution upon meeting the following criteria:
In some circumstances for faculty and staff with previous experience at another institution of higher education, the one year of service may be able to be waived. University matching contributions and employee deferrals are fully and immediately vested. That is, 100% of the University contributions and related earnings are fully owned by the participant and none are forfeited should the employee terminate employment. Investment of Contributions A participant in the Plan may direct his or her own contributions, University matching contributions, and related earnings to any fund offered by the two investment companies chosen by the University – TIAA-CREF and Fidelity Investments. Loans TIAA-CREF offers a loan option on a portion of the employee salary deferral accumulations which gives participants access to their savings before retirement and, provided all repayments are made on time, without tax penalty. 403(b) Retirement Plan Provisions Forms
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