(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 email@example.com.
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 403b 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 2015 most employees will be able to contribute up to $18,000 for those under the age of 50 and $24,000.00 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:
- Contact the company of your choice from the approved vendor list below. The companies are authorized to offer TDA investments varying from conservative to aggressive. This allows you to select the right investment based on your individual objectives.
- Approved Vendor Contact Information
- Decide how much you want to have deducted from each pay and how that money is to be distributed.
- Complete an application obtained from the company you have selected and submit it to them.
- You or the agent should send a copy of the UT Salary Reduction Agreement (for the 403b account) to UT Human Resources.
Employees who are on a 9-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.
Additional Tax Deferred Annuity Information
To help keep our 403(b) Plan in compliance, The University of Toledo has entered into an administrative agreement with planwithease.com. Some of you may have already been told by your 403(b) provider that certain requests (including loans, withdrawals, contract exchanges, transfers, rollovers, hardship withdrawals, purchase of service credit, and others) must now receive approval by the plan administrator via signature before the transaction can be completed. As our plan administrator, planwithease.com will review and authorize these requests electronically. Please note that planwithease.com works 24 hours a day, so it’s always ready when you need it.
We have provided planwithease.com with basic information about each employee eligible to participate (or participating in) our 403(b) Plan, so that a profile on the site for each such employee could be created. When you log into the site for the first time, you will be asked to create your own unique user ID and password. We ask that you log in as soon as possible to create these items, and begin using the site. Please log in at: www.planwithease.com. The first time you log in, your User ID is your social security number, and your password is the month and year of birth in MMYY format. For example, a birth date of June 9, 1960 would be “0660”. Once logged in, you will be prompted to change both your User ID and Password so that they are specific to you. You will also find a Participant User's Guide on the site that you can access online or print for reference. I suggest that you complete this initial log in and become familiar with the site now and not wait until you want to use it!
To obtain approvals from planwithease.com, start by obtaining the necessary paperwork from your 403(b) provider by calling them or going to their website for the forms needed to complete the transaction. This is the same process as always, as each provider will have unique transaction paperwork for that company. Next, log into www.planwithease.com and, in the left-hand navigation column, click on the type of transaction being requested. The site will walk you through each step, prompting you for answers to basic questions and instructing you to provide any additional documentation needed to complete your request. Once you receive notice that your requested transaction is approved, you simply print the approval notice document (not the email or screen image!) and attach it to the paperwork you received from your provider. For example, if you requested a loan, you will attach the planwithease.com approval notice to the loan application you received from your 403(b) provider and send both to your 403(b) provider, who will then process your request.
The planwithease.com website also offers financial education information and calculators, which are available to all employees.
We realize change is never easy and most people don’t like to make changes. These administrative changes were mandated by the IRS, and the University felt the best way to stay in compliance and provide the highest level of service to our employees was to utilize the services available with planwithease.com. We are confident this system is easy to use, will speed transaction approvals and will keep any inconvenience to a minimum.
Should you have questions, please contact firstname.lastname@example.org or you can refer to the planwithease Participant User's Guide.