Tax Deferred Annuity & Deferred Compensation Plan
- Deferred Compensation (Traditional & Roth 401(k) and 457)
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Forms - 403(b) companies
Enrollment/Change Periods
You may enroll anytime. You can make contribution changes up to 4 times each calendar
year.
- All full and part-time employees (faculty and staff)
- Temporary staff and part-time faculty are not eligible for the 401(k) state match
Description of Plans
The University of Memphis offers three long-term savings plans designed to supplement
income after retirement. These plans are authorized under the following sections of
the Internal Revenue Code.
- 403(b) - designed for educational and nonprofit institutions
- 401(k) Traditional and ROTH - designed as a deferred compensation plan
- 457- also designed as a deferred compensation plan
Contributions
Employees may contribute a specified amount to the plans through salary reduction.
Amounts contributed do not affect retirement or social security. Except for the 401(k)
ROTH, contributions and earnings of the plans are not subject to federal income tax
until funds are withdrawn. Generally, withdrawals are not permitted before age 59
1/2 or retirement. Early withdrawals are subject to taxes and IRS regulation, and
may be subject to a federal penalty. There is a minimum monthly contribution of $20.
See table below for the annual maximum amounts that can tax deferred under these programs.
Annual Maximum Contribution Amounts:
- 401(k) and 403(b) combination
- Less than age 50: $23,500
- Age 50+: $31,000
- 457
- Less than age 50: $23,500
- Age 50+: $31,000
The IRS has announced the cost-of-living adjustments (COLAs) affecting the contribution limits related to retirement accounts for the 2025 tax year. Below are the 2025 employee contribution limits for the UofM plans:
| Age | 401(k) (offered through Empower) | 403(b) (offered through TIAA_and VOYA) | 457 (offered through Empower) |
|---|---|---|---|
| Under age 50 | $23,500 (increase of $500) | $23,500 (increase of $500) | |
| Age 50 and over catch up | $7,500 | $7,500 | |
| Ages 60, 61, 62, or 63 catch up* | $11,250 | $11,250 | |
401(k) and 457: The 401(k) and 457 are administered by Empower Retirement. Each program
offers the same investment options. With at least the minimum contribution in the 401(k), the State of TN will also
contribute a match of up to $50 per month (see below). There is not a match in the
457.
**Effective July 1, 2024, the State of TN will match $1 for every $1 contributed by
the employee, up to $50 per month for an employee contribution of $50. Please note
that to receive the maximum match of $50, the employee must contribute $50.**
403(b): There is not a match in the 403(b). There are currently two companies that are available for investment in the 403(b). See above for a list of those companies. The University of Memphis makes no recommendations as to companies with which to do business.
- State of TN Deferred Compensation Forms
- 403(b) participation agreement form*
- 403(b) termination form
*Please contact the company for their specific enrollment form. This additional enrollment form must be completed before the 403(b) contribution can begin.