|
Tax Deferral
Many of you may not be aware of the unique tax deferral opportunities
available for faculty through the University's Tax deferred Annuity program
403 (b), and the Deferred Compensation Plan (457-DCP). Each of these plans
offers faculty and staff the opportunity to put aside pre-tax dollar to
build income for retirement.
Based on the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of
2001, participants can defer up to $13,000 in 2004 in each plan, with
eligibility for an additional $3,000 if age 50 or above. In 2005 all
participants will be eligible to defer up to $14,000 per plan with an
additional $4,000 available to those over 50 for a total of $36,000
($18,000 per plan). Additional catch up provisions may apply to employees
based on years of service.
For enrollment information, please see the Human Resources Benefits
websites at: http://www.hr.vcu.edu/benefits/tax-deferredannuity.htm or
http://guest.vadcp.com/t1001/menu/frameSet.asp?M1=123
This is a wonderful retirement saving oportunity and I encourage you to
take full advantage of the programs.
For questions please contact benefits@vcu.edu |