The University of the South 403(b) Retirement Plan allows all eligible employees to make contributions during working years to provide income during retirement. This document is provided to assist in answering common questions. In the event information differs between this document and the Plan Document, the Plan Document will govern.
What is an eligible employee?
An eligible employee is an employee of the University who is:
- a regular full-time employee,
- a regular part-time employee who is normally schedule to work at least 1,000 hours per year (20 hours per week)
- a full-time employee who has a term appointment in excess of two consecutive years, and
- not an excluded employee as defined by the plan
When am i eligible to receive university contributions?
The waiting period to receive University contributions (nonelective contributions) is one year from the date of employment. The one-year service requirement will be waived if you worked full-time at a four-year college or university for the 12-months period immediately prior to your employment with the University.
how much is the UNIVERSITY's CONTRIBUTION?
Once eligible, the University will contribute an amount equivalent to 10 percent of your base pay. For more information on how the Plan defines base pay, please refer to the University of the South’s 403(b) Retirement Plan Document, found on the Human Resources (HR) Benefits site.
Additionally, for each month during the period September 2022 through June 2025, the University will contribute an additional nonelective contribution to each eligible participant equivalent to an amount determined by (1) the ratio of the participant’s eligible monthly salary or wage to the total monthly salary or wage of all employees eligible for nonelective contributions multiplied by (2) the additional contribution available that month ($100,000 per month during Fiscal Year (FY) 23 and $85,000 per month during FY24 and FY25).
How do I enroll in the plan?
Once eligible, you will be automatically enrolled in the Plan and you will be notified to review your default investment allocations and update your personal information within your retirement account, including a beneficiary.
When am I eligible make my own contributions and how do I indicate the contribution amount?
You are eligible to make your own pre-tax contributions (elective contributions) on the first day of the month following the date of employment or anytime thereafter. To start, change or stop your elective contributions, complete and submit the Salary Reduction Agreement.
Are their limits to how much I can contribute to the plan each year?
Yes; the total contributions made during any Plan Year will not exceed the limits imposed by Internal Revenue Code (IRC) for that year. For Plan Year 2024, elective deferrals are limited to $23,000 with an additional $7,000 allowed for eligible catch-up contribution participants.
How long must I wait before contributions are vested in the plan?
You are fully and immediately vested in all contributions, nonelective and elective alike.
Where is my retirement plan invested?
The University currently sponsors a tax-deferred plan with TIAA.
Can I roll funds from other tax-deferred retirement accounts into this account?
Yes; please contact our fund sponsor, TIAA, at 800.842.2252 or by visiting tiaa.org/sewanee
If I need to withdraw money from my retirement account, can I?
Yes, but with specific restrictions. Understandably, contributions to a retirement plan are meant to be saved for retirement, and so restrictions on distributions do exist. For a comprehensive explanation of possible distributions options, including loans, please see Article 7 of the Plan Document.
Where can I learn more about the Plan?
More information on this plan is available in the Office of Human Resources at 380 University Avenue, Sewanee, TN 37383-1000, or by calling 931.598.1213.
Where can I learn more about investing my retirement funds?
To schedule a confidential consultation with a Certified Financial Planner (CFP) at CAPTRUST, our independent third-party financial advisor, visit their online scheduler. The consultation is a complimentary service provided by the University, and the advice provided is specific to you and your family and, again, completely confidential.
