SUPPLEMENTAL RETIREMENT PLAN – EMPLOYEE FUNDED
All faculty members are eligible to contribute to supplemental retirement accounts.
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.
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* In the event of retirement, termination or disability, your earnings can be withdrawn tax-free as long as it has been 5 years since your first Roth 403(b) contribution and you are at least 59 1/2 years old.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.
Supplemental retirement contributions (pre-tax and after-tax) vest immediately.
Maximum SRA Contribution (pre-tax and after-tax combined)
The maximum amount of contributions that can be made to an SRA is re-calculated each year according to an IRS formula. Human Resources notifies participants of these maximums each year. The minimum contribution to an SRA is 1% of annual salary.
Pre-tax and after-tax supplemental retirement contributions may be invested in the TIAA/CREF and Fidelity investment options available under the retirement plan:
- CREF Bond Market Account
- CREF Global Equities Account
- CREF Growth Account
- CREF Equity Index Account
- CREF Inflation-linked Bond Account
- CREF Stock Account
- CREF Money Market Account
- CREF Social Choice Account
- TIAA Traditional Account
- TIAA Real Estate Account
- Vanguard Total Bond Market Index
- American Funds New Perspective Fund R4
- T.Rowe Price Growth Stock Fund Adv
- Vanguard 500 Index Fund Signal Shares
- Vanguard Inflation-Protected Securities Fund
- American Funds Euro-Pacific Growth Funds R4
- Columbia Mid-Cap Index
- Vanguard Small Cap Index
- PIMCO Total Return
- DFA Emerging Markets
- Vanguard Developed Markets Index Fund
- TIAA-CREF Life Cycle Funds
- DFA Inflation-Proctected Securities Portfolio
- Fidelity Money Market Trust Retirement Govt Money Market Portfolio
- Fidelity Contrafund
- Invesco Diversified Dividend Fund
- Spartan 500 Index Fund
- Spartan Emerging Markets Index Fund
- Spartan Extended Market Index Fund
- Spartan Global ex U.S. Index Fund
- Spartan Intermediate Treasury Bond Index Fund
- Spartan Real Estate Index Fund
- Spartan U.S. Bond Index Fund
- Wells Fargo Advantage Small Cap Value Fund
- Fidelity Freedom Funds
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.