Future Focus, Your Retirement Planning Resource
The University of Texas System Retirement Programs: The Best Place to Start!
The UT System Office of Employee Benefits will continue to provide this newsletter each quarter. We welcome your feedback on this issue and ideas about future topics you would like to see included.
What’s in this Issue?
Take advantage of the UTSaver Supplemental Retirement Plans
The best time to begin saving for retirement is now!
Most of us will need at least 70% of our pre-retirement income—and probably much more than that—to live comfortably in retirement. Whether you're on track to meet your retirement goals or not, contributing to one of the UTSaver supplemental retirement plans can help you increase your ultimate savings.
Here are some advantages:
- It's an easy way to save. With a UTSaver supplemental retirement plan, your contributions come directly from your paycheck. You don't have to worry about sending a check on time.
- You save on taxes now. You can contribute on a "pretax" basis—before taxes are subtracted from your salary, and you can lower your taxable salary and your current tax bill.
- Tax-deferral is powerful—use it. With a UTSaver Traditional 403(b) Tax Sheltered Annuity or a 457(b) Deferred Compensation Plan, you don't pay income taxes on either your earnings or contributions until you withdraw the money at retirement.
- You can save on taxes later. You can also receive a tax-free distribution. With a UTSaver Roth 403(b) Tax Sheltered Annuity, you can contribute on an “after tax” basis—after taxes are subtracted from your salary. Your investments and any earnings can then be returned to you tax free with a qualified* distribution.
*A qualified distribution is five years of Roth contributions and attainment of age 59 ½ at termination or five years of Roth participation upon death or disability.
- You can save a little or a lot of money. In 2007, you can contribute as little as $25 per month or as much as $15,500 per year, and up to $20,500 if you're 50 or older. (These limits may vary depending on your personal circumstances. Before enrolling in a UTSaver 403(b) Tax Sheltered Annuity, please contact your local benefit office to have your limit calculated.)
Back to TopTax Sheltered Annuity and Deferred Compensation. What’s the difference?
The University of Texas Retirement Plans offer two supplemental retirement plans. These plans are available to any employee receiving a paycheck from UT, whether full time or part time.
These plans are the UTSaver 403(b) Tax Sheltered Annuity (Traditional and Roth), and the UTSaver 457(b) Deferred Compensation Plan.
For more details on how the two plans compare, go to: http://www.utretirement.utsystem.edu/pubs/Vol_Ret_Sum.pdf
For information about the six currently approved retirement providers and the services they offer, go to: http://www.utretirement.utsystem.edu/pubs/VenderServices.pdf
The Fourth Quarter Fund Performance Summary Is Ready!
The University of Texas Retirement Programs offers numerous investment options. The Performance Summary allows for an easy comparison of your options.
View the Fourth Quarter 2006 Fund Performance Summary.