Supplemental Retirement Plans

(Supplemental Retirement Plan FAQ Sheet)

 

As an employee of Medical College of Georgia, you are permitted to participate in a 403(b) and/or 457(b) tax deferred retirement programs.

WHAT IS A 403(b) AND 457(b) PROGRAM?

WHY CONTRIBUTE TO A 403(b) AND/OR A 457(b)?

WHAT COMPANIES CAN I PARTICIPATE WITH?

HOW MUCH CAN I CONTRIBUTE?

 

What is a 403(b) and 457(b) plan?

A 403(b) and a 457(b) plan is a tax-deferred retirement plan available to employees of educational institutions and certain non-profit organizations. In this plan, you can make pretax contributions for retirement savings.

 

Why contribute to a 403(b) and/or a 457(b)? 

Participating in your plan can provide a number of benefits including:

• LOWER TAXES TODAY.  Your 403(b) and/or 457(b) contributions are made on a pre-tax basis which can greatly reduce your current income tax bill.  For example, if your federal marginal income tax rate is 25%, and if you contribute $100 a month to a 403(b) and/or a 457(b) plan, you've reduced your federal income taxes by roughly $25 (assuming a 25% tax bracket). In effect, your $100 contribution costs you only $75.  The tax savings grow with the size of your 403(b) and/or 457(b) contribution.
• TAX-DEFERRED GROWTH.  Your account in the 403(b) and/or 457(b) plan is tax-deferred.  This means your account can grow tax-free until time of withdrawal.
• ENHANCED RETIREMENT.  Other sources of retirement income, including state pension plans and, Social Security, often do not adequately replace a person's salary upon retirement.  A 403(b) and/or 457(b) plan can provide a healthy supplement to an employee's retirement income.

 

What companies can I participate with? 

Fidelity
Representative: Telephone: To Enroll/Update/View Account:	Jeff Juday 1-800-550-4068 www.fidelity.com/atwork
VALIC
Representative: Telephone: Enrollment Information:	Tommy Burckhalter or Ross Douglas 706-722-4600 Contact Benefits & Data Management Office @ 721-3770 for more information.
TIAA-CREF
Representative: Telephone: To Enroll/Update/View Account:	Dean Yarbrough 1-800-842-2003, Ext. 3527 http://enroll.tiaa-cref.org/medicalcollegeofgeorgia/

How much can I contribute?

403(b) and 457(b) contributions for MCG employees in 2010 are generally limited to 95% of full gross salary not to exceed $16,500 for employees less than age of 50, or 95% of full gross salary not to exceed $22,000 for employees who are projected to attain age 50 or more by 12/31/2010.  (Age-based catch-up under section 414(v)).