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Tax-Sheltered Annuity (TSA) 403(b) Program

Overview

The CSU 403 (b) Tax Sheltered Annuity (TSA) Program is a voluntary program that allows eligible CSU employees to save toward retirement by investing pre-tax contributions in tax-deferred investments in either annuities or mutual funds, under Internal Revenue Code (IRC) Section 403 (b). TSA contributions are made solely by the employee through payroll deductions, prior to federal and state taxes being calculated. 

Program Details

  • Eligible employees may participate in the CSU 403(b) tax-sheltered annuity plan.
  • Allows an eligible employee to defer a maximum pre-tax/post-tax deduction of $18,500 for 2018.
    • This annual limit includes any contributions to a 403(b) and a 401(k) combined.
  • Roth Contributions, Brokerage Link, and Portfolio Advisory Services are some of the Program features.

Enrollment Information

Employees may access enrollment, deferral, and investment information at Fidelity NetBenefits.

Transfers

If you have balances with MetLife, TIAA, VALIC, VOYA or other legacy fund sponsor, and would like to transfer your 403(b) account, contact Fidelity for Information and guidance.

Change or Reallocation of TSA Contributions

  • To change the amount you contribute or how your funds are invested, login to your account through Fidelity NetBenefits.
  • The cutoff day to make Contribution changes at Fidelity is the 5th of each month before 9PM, for the next month's pay warrant.
  • Other TSA transactions - What would you like to do?

Catch-Up Provisions

  • You may be eligible for the 15-Year and/or Age 50 Cattch-Up Contribution Allowance.
  • If an employee qualifies for both the 15-Year and Age 50 Catch-Up, the 15-Year Catch-Up must be exhausted before the Age 50 Catch-Up is applied.
  • employees must demonstrate eligibility by completing the 2018 TSA Maximum Catchup Worksheet and returning it to the Benefits Office.

 Loans and Hardship Withdrawals

  • Participants can have one outstanding loan at any time with Fidelity or from an existing CSU 403(b) account with one of the following legacy vendors: TIAA, VALIC, Ameriprise, AXA Equitable, Lincoln and National Life Group.
  • Minimum loan amount i $1,000.
  • If an employee has defaulted on any prior CSU TSA 403(b) Program loan, a new loan will not be permissible.
  • Retired and separated employees are not eligible to take a loan.

Fees

  • CSU TSA Program participants pay a fixed dollar plan administration fee of $11.50 each calendar quarter ($46.0 per year).
  • This fee will be deducted from each currently contributing participant's account per year.
  • The fee will appear in your Retirement Plan account each quarter. You will see this fee as a line item on the quarterly statement.
  • See Understanding the fees in the CSU TSA Program for more details.

Dual Participation

Employees may make maximum contributions to a 403(b) plan and a 457 plan. For example, for tax year 2018, a participant could elect to contribute up to $18, 500 to a 403(b) plan AND up to $18, 500 to a 457 plan, for a total contribution of up to $37,000. However, contributions to a 403(b) plan are offset by any contributions to a 401(k) plan in the same tax year.  Employees contributing to both a 403(b) and a 401(k) plan are restricted by IRS regulations to a combined total of $18,500.

Each employee is responsible for their own calculations and to make sure the IRS limits are not exceeded.