TAX DEFERRED PLANS

The following plans are available to employees under the rules and regulations of the Internal Revenue Service as well as legislation know as the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). Employees may participate in both plans simultaneously or independently. Both plans are voluntary and there are no matching university contributions.

Tax Deferred Annuity Program (TDA)

Employees may purchase tax deferred plans with a portion of their salary. The employee’s contributions are deposited with an approved company of the employee’s selection and are tax sheltered. A variety of investment options are available including fixed annuities, variable annuities and mutual funds. The minimum monthly contribution is $25.00 and the maximum amount is determined according to EGTRRA regulations and qualifications. Employees may increase or reduce the monthly amount (within the maximum limit), change companies or cancel their participation at any time with the required documentation. TDA’s have a 10% penalty tax applied to distributions made prior to age 59 ½ unless an exception applies.  For additional information please contact the Office of Human Resources. 

457 Deferred Compensation Program

Employees may also enroll in the State of Texas 457 deferred compensation program administered by CitiStreets under the guidelines set by ERS. There are several investment allocations available that include money market funds, bond fund, index funds, value accounts, overseas funds and growth funds.  One and or more funds may be selected as the investment option.  The minimum monthly contribution is $20.00 and the maximum amount is determined according to EGTRRA regulations and qualifications. Employees may increase or reduce the monthly amount (within the maximum limit), change companies or cancel their participation at any time with the required documentation.  This 457 has no penalty tax on distributions at any age after termination of employment.  For additional information, please refer to www.ers.state.tx.us. using the Texa$aver link.