All employees (except student employees) are eligible to participate on a voluntary basis in the Rollins College Tax Deferred 403b Retirement Plan. Eligible employees can elect to contribute a flat dollar amount per pay, not to exceed the limit imposed under the IRS Tax Code 415. Voluntary contributions can be directed to TIAA/CREF Retirement Choice Annuity (RC), TIAA/CREF Retirement Choice Plus Annuity (RCP), and Fidelity.
Regular faculty and staff working greater than 1,000 hours per year are eligible for college contributions the first of the month after they meet the requirements of one year of service and age 21. Adjuncts, temporary employees, and students are not eligible for college contributions. There is a seven percent of base salary college contribution that requires no employee contribution. Then, with a deferred employee contribution of one to three percent of base salary, the college will contribute an additional one to three percent of base salary. The maximum college contribution is ten percent of base salary; however, the employee can contribute additional voluntary up to the IRS limit. Employee deferred and college contributions are 100 percent vested immediately and can be directed to TIAA/CREF (RC) or Fidelity. Matched employee and college contributions cannot be directed to the TIAA Retirement Choice Plus Annuity (RCP).
A Salary Reduction Agreement must be signed to begin or change contribution amounts (including the base college contribution of seven percent). To begin contributions, online enrollment with Fidelity or TIAA-CREF is required. There are two different Salary Reduction Agreements: one if you decide to contribute the maximum and one if you decide not to contribute the maximum. Details on IRS maximums are found on the Salary Reduction Agreement.
Information on fund choices and allocation options is included in the TIAA-CREF and Fidelity enrollment packages available in the Human Resources Department. Employees may also contact the company directly at: TIAA/CREF (800-842-2776) and Fidelity Investments (800-343-0860).
All employee deferred contributions (first 3% of contributions) are on a before-tax basis. Additional employee voluntary contributions may be on a before or after-tax basis. All voluntary contributions to the RCP under the TIAA/CREF Plan must be made on a before-tax basis.
The Roth 403(b) after-tax option is offered through Fidelity Investments. With a Roth 403(b) feature, you can designate all or a portion of your future deferral contributions as “Roth contributions.” Traditional 403(b) contributions are made on a pre-tax basis and are not
included in current taxable income. The pre-tax contributions and any earnings will be subject to income taxes when withdrawn. In contrast, Roth 403(b) contributions are made on an after-tax basis and are included in current taxable income. Earnings are tax free if they are part of a “qualified distribution.” The IRS contribution limit combines both Roth 403(b) and traditional 403(b) pre-tax contributions.
Fidelity provides a Roth Educational Calculator where you can view hypothetical scenarios showing some differences between a Roth 403(b) deferral and a pre-tax 403(b) deferral. Simply go to www.fidelity.com/atwork/roth, select the “Tools & Calculators” tab from the home page, click on “Planning Calculators” and go to the Roth Educational Calculator at the bottom of the page.
For additional information please review the Retirement Plan Policy in the Policy section on R-Net.
Rollins College also has an established 457(b) Deferred Compensation Plan through TIAA-CREF. These plans are established for a select group of highly compensated employees and allow additional tax-deferred contributions. The Internal Revenue Code requires that assets within the contract are considered part of Rollins College general assets until a distribution occurs at separation from employment. Participants do have the ability to select their own asset allocation from the same TIAA-CREF funds available in the 403(b) plan.
To determine eligibility and enroll, a 457b Voluntary Salary Deferral Agreement must be completed. Please contact Human Resources for further information and enrollment materials.