The Tax-Deferred Annuity Plan, Section 403(b) of the Internal Revenue Code allows you to postpone paying income tax on contributions towards an annuity until after you retire. Your contributions to a 403(b) are made by deferring some of your salary to it before paying tax. Taxes are due when you eventually withdraw the money. This lets you benefit from tax-deferred compounding, which helps your money grow over time.
The contribution limit established by the Internal Revenue Service for the 403(b) in 2023 is $22,500.00 for most employees. Contribution maximums vary per individual. There is a catch-up provision for all employees age 50 and over to make an additional contribution of $7,500.00 on top of the normal $22,500.00 maximum limit for a total of $30,000 in 2023. Also anther catch-up provision may be available for employees with 15 years of service or more to put in up to $3,000.00 more, however, this catch-up provision requires proof of eligibility. Payroll deductions for the 403(b) plan are made in accordance with your employment status: faculty ten (10) times a year, unclassified staff twelve (12) times a year and classified staff twenty four (24) times a year.
UL Lafayette is not authorized to give tax advice. You should consult your tax advisor or any firm that has qualified and is authorized for payroll deduction privileges for the 403(b) plan at the University to make sure that you are within the limits of the maximum allowable contributions. Contributions over your maximum for any calendar year could result in a monetary penalty for the IRS.
For general information on the 403(b) program you can log on to a generic website: www.403bwise.com from the annuity provider.
Timing, frequency and cancellation of 403(b) salary reduction agreements have no specific limits, therefore, you can enter into, modify or revoke your salary reduction agreement at any time provided it is within the time restraints set by the University.
Planwithease is a Third Party Administrator for UL’s 403b plan and is a partner with Voya. They provide authorizations for the transactions that take place within the 403b, i.e., transfers, exchanges, withdrawals, hardships, loans, etc. They are aware of the rules of the plan from the Sponsor and the IRS.
All participants in the 403b that have not already registered with planwithease were sent a pin code to use for their password as an additional security measure. All will eventually want access to their 403b assets, It's adviseable that they go to www.planwithease.com and register for future use.
457 Louisiana Public Employees Deferred Compensation Plan
The Louisiana Deferred Compensation Plan is a powerful tool to help you reach your retirement dreams. As a supplement to other retirement benefits or savings that you may have, this voluntary Plan allows you to save and invest extra money for retirement...tax-deferred!
Not only will you defer taxes immediately, you may build extra savings consistently and automatically, have a variety of investment options to choose from, and learn more about saving and investing for a secure financial future.
You may also qualify for a federal tax credit by participating in this Plan. For more information about this tax credit, please contact your Plan representative. You may call or visit your Louisiana Deferred Compensation Plan office.
2237 S. Acadian Thruway, Suite 702
Baton Rouge, LA 70808
Great West Home Office
Tax-Deferred Annuity Forms: Please click the following link to access all appropriate forms regarding Tax-Deferred Annuities.