UT Human Resources : Tax-Deferred Annuities

(as defined in Section 403b and 457 of IRS code)

For information on changes to vendor listing or overall information regarding changes to Tax Deferred Annuities please contact the Benefits Department at 419.530.HRHR (4747)

What is a Tax Deferred Annuity (TDA)?
It is a plan that allows employees to put aside money into an investment account, which can build income for retirement.

The University of Toledo is a public non-profit organization and all permanent employees have the opportunity to participate in the valuable benefit of investing in TDAs, a benefit covered in Sections 403 (b) and 457 of the Internal Revenue Code. The Economic Growth and Tax Relief Reconciliation Acts of 2001 have increased the tax-deferred amount that can be saved for retirement. In 2009 most employees will be able to contribute up to $16,500 for those under the age of 50 and $22,000.00 for those 50 and over to a TDA plan.

When you participate in the TDA program you agree to have the University take out an amount of money you want to invest and redirect it into the annuity, mutual fund or Ohio deferred compensation that you select. Since contributions are taken from your salary before taxes are deducted, you receive an immediate tax-break. Your current taxable income is lowered for the year. Investing through the TDA only reduces your pay for income tax purposes; it does not affect how pay raises are calculated or any other benefits that are based upon pay.

You may sign up for a TDA, discontinue or make changes to your current TDA at any time during the year. To sign up for a TDA, please complete the following steps:

1. Simply contact the company of your choice from the approved list.  The companies authorized to offer TDA’s provide investments varying from conservative to aggressive. This allows you to select the right investment based on your individual objectives.

1. 403b Approved Vendors

2. 457: Ohio Deferred Compensation 1.877.644.6457 or www.ohio457.org    

1. 2009 457 On Campus Dates                               

2. Decide how much you want to have deducted from each pay and how that money is to be disbursed.

3. Complete an application obtained from the company you have selected and submit it to them.

4. You or the agent should send a copy of the application along with the UT Salary Reduction Agreement (for the 403 (b) account) to the University Human Resources office. 

Employees who are on a nine-month appointment will have 18 deductions per calendar year, and 12 month employees will have 24 deductions per calendar year. Deductions will begin on the pay date you indicate, if received within the payroll-processing deadline.