403(b) Retirement Savings Plan
The Ithaca College 403(b) Retirement Plan provides all employees of the College, who receive compensation reportable on an IRS Form W-2, the opportunity to save for their retirement. Student workers are not eligible to participate in the plan. Participants must contribute at least $200 per year and be at least 21 years of age. The Plan which is administered by TIAA-CREF is a defined contribution plan that operates under Section 403(b) of the Internal Revenue Code (IRC). Participation is voluntary.
New eligible employees, hired after June 1, 2013, are automatically enrolled at a 5% employee contribution rate. Ithaca College will provide a matching contribution. Participation is voluntary and employees can change or stop their contributions at any time. See the Automatic Enrollment and Qualified Default Investment Alternative Initial Notice for more information.
If you wish to opt-out of the Ithaca College 403(b) Retirement Plan, complete the Agreement for Opting Out.
Eligibility to Make Elective Deferrals
All employees who meet the above criteria are eligible to contribute a portion of their pay into the Plan as a pre-tax Deferral and/or a Roth Deferral. Roth deferrals are made with after-tax dollars, and any qualified distributions of the contributions plus earnings are tax-free. Please see the Universal Availability Notice for more information.
Eligibility to Receive Matching Contributions from Ithaca College
When eligible employees set aside 5% of their base salary to the plan, Ithaca College will provide a matching contribution of 9% of the base salary.
Eligible faculty members holding the rank of Professor or Associate Professor, or Administrators with Group I Benefits are eligible to receive matching contributions immediately upon employment.
Other eligible faculty members (other than those holding the rank of Professor or Associate Professor), or eligible Administrators and Staff with Group II benefits are eligible to receive matching contributions after one year of eligible service at the College. The one-year waiting period may be waived if you were participating in an employer-funded 403(b) retirement plan under the terms of a retirement plan of a two- or four-year college or university in the twelve-month period immediately preceding employment at Ithaca College. To request that the waiting period be waived please complete the Application for Waiver form.
Contribution Limits for Calendar Year 2015
An employee may contribute up to $18,000 during the calendar year. (IRC §402g limit)
An employee who is age 50 or older in the calendar year may contribute up to an additional $6,000, for a maximum limit of $24,000.
An employee who has 15 or more years of service with Ithaca College may be eligible to contribute up to an additional $3,000 for the calendar year. Contact the benefits and work/life department to determine eligibility to contribute under this option.
Contributions made by an employee as well as contributions the College makes on an employee’s behalf are subject to a number of complex Internal Revenue Code limits. An employee’s salary reduction contributions (to this Plan and to most other retirement plans) cannot exceed the lesser of the dollar limits above or 100% of their pay.
Contributions made to another employer’s retirement plan in the same calendar year may limit contributions to IC’s plan. Please contact the Employee Benefits & Work/Life Department for more information.
The annual compensation limit that can be taken into account for calculating retirement plan contributions is $265,000 for 2015. (IRC §401a(17) limit)
The limit on annual combined employer and employee contributions is $53,000. (IRC §415c(1)(A) limit)