SUPPLEMENTAL RETIREMENT PLAN – EMPLOYEE FUNDED
All faculty members are eligible to contribute to supplemental retirement accounts.
Pre-tax Contributions
IRS regulations allow participants to make tax-deferred contributions from salary to a supplemental retirement account. Wesleyan calls such accounts pre-tax SRAs (supplemental retirement accounts). Another common name for this type of account is TDA (tax-deferred annuity). Federal and Connecticut income taxes on SRA contributions are deferred until retirement income is paid out.
Roth Contributions
IRS regulations allow participants to make after-tax contributions from salary to a supplemental retirement account. Wesleyan calls these accounts after-tax SRAs (supplemental retirement accounts) or Roth 403(b) accounts. Since contributions are made with after-tax dollars, you can withdraw all your Roth funds, including earnings, tax-free.*
* In the event of retirement, termination or disability, your earnings can be withdrawn tax-free as long as it has been 5 years since your first Roth 403(b) contribution and you are at least 59 1/2 years old. In the event of death, beneficiaries may be able to receive distributions tax-free if the deceased started making contributions more than 5 years prior to the distribution.
Vesting
Supplemental retirement contributions (pre-tax and after-tax) vest immediately.
Minimum and Maximum SRA Contribution (pre-tax and after-tax combined)
The maximum contribution that can be made to an SRA is determined by the IRS each year and communicated to employees by Human Resources.. The minimum contribution to an SRA is 1% of retirement-eligible earnings and the maximum is 85% (subject to the IRS maximum).
Investment Options
Pre-tax and after-tax supplemental retirement contributions may be invested in the TIAA and Fidelity investment options available under the retirement plan.
Starting or Changing SRA Contributions
SRA contributions may be started, canceled, or changed as follows:
- Changes to an SRA during fall open enrollment are effective the following January 1.
- Changes made during other times of the year are effective on the next available pay period of the following month.
Enrollment forms and more information about investment options and SRA’s are available from Human Resources.
Consultation Opportunities with TIAA and Fidelity
Meet with a TIAA or Fidelity financial advisor for an individual retirement consultation and to learn more about their offerings. Schedule a free one-on-one consultation at: