Voluntary Retirement Programs FAQ
Q: Is the contribution to this plan made on a pre-tax basis?
A: All contributions to the tax sheltered annuity 403(b) program and the tax deferred 457 program are made on a pre-tax basis.
Q: Can I begin participation in the voluntary retirement plans at any time?
A: Yes, employees can begin participation in these plans at any time.
Q: What happens to my voluntary retirement account if I terminate my employment with GSU?
A: You have several options. Employees can rollover their contributions to another qualified plan, leave the contributions in the account or take a lump sum withdrawal (subject to IRS regulations).
Q: Can I participate in the both the 403(b) plan and the 457 plan at the same time?
A: Employees can participate in both the 403(b) and 457 plans at the same time.
Q: What is the maximum dollar amount that I can contribute to each plan during calendar year 2008?
A: The general limit for 2008 is $15,500 to each plan. Some individuals may be allowed to contribute additional dollar amounts under the various catch-up provisions.
Q: If I am at least 50 years old, can I contribute an additional dollar amount under the age catch-up provision?
A: Participants who are at least 50 years old can contribute an additional $5,000 to both the 403(b) and 457 voluntary retirement plans during calendar year 2008.
Q: Who determines the maximum dollar amount that an individual can contribute to the 403(b) and 457 voluntary retirement plans?
A: The Internal Revenue Service Code determines the maximum dollar amount that an individual can contribute to a voluntary retirement plan.
Q: Who is eligible to contribute to the voluntary retirement plans?
A: Most employees* are eligible to participate in a voluntary tax-deferred annuity plan offered through Georgia State University under provision 403(b) of the Internal Revenue Code (IRC).
*Tax treaties generally disallow non-immigrant foreign nationals who work in the U.S. from excluding such contributions from their taxable income, so there is no advantage to participation.
Q: Does GSU contribute to the voluntary retirement plans on my behalf?
A: The voluntary retirement plans consist of employee contribution only. There are no matching funds from the University.