403(b) Tax-Deferred ANnuity
Tax-deferred annuity plans or TDAs are tax-deferred retirement plans available to employees of community colleges, state colleges, universities, and other qualified individuals employed in an educational capacity including the Board of Higher Education.
Employees can contribute by payroll deduction a portion of before-tax salary into a TDA plan up to certain limits. The maximum contribution to a 403(b) account is defined by the IRS according to specific guidelines, including additional contributions if the individual is age 50 or older. The amounts contributed to the TDA plan on the employee's behalf are not included in the employee's income for the purposes of federal and state income tax withholding, but they are subject to Medicare taxes.
As of July 1, 2007, all new participants must select one of the contract providers of the Commonwealth 403(b) Plan: Fidelity, Voya Financial, Lincoln Financial, MetLife, TIAA-CREF, and VALIC.
Employees should contact their local payroll representatives for additional information.
Board of Higher Education staff and campus employees may also contribute to the Commonwealth's 457 Deferred Compensation SMART Plan.