University of California Laboratory employees have another tax-deferred retirement savings plan available, thanks to recent action by the UC Board of Regents.
The regents approved a new voluntary savings plan that effectively doubles the amount of money UC faculty and staff may put into tax-advantaged retirement savings. The plan also is available to UC Lab employees, according to Benefits and Employment Services (HR-B).
In addition to the tax-deferred 403(b) plan UC currently offers, this plan gives employees additional opportunities to save for retirement and enjoy the valuable benefits of tax-deferred savings. Plan implementation will occur as soon as is administratively feasible, and is contingent upon the successful search for an external firm that can provide the required record-keeping and investment education services.
The new plan, defined as a 457(b) plan by the Internal Revenue Code (IRC), has the same contribution limits as the 403(b) plan, however, the contribution limits set by the IRC for each plan do not offset one another. For example, an employee who already contributes the maximum amount permitted to UC's 403(b) plan ($13,000 in 2004) also could contribute up to $13,000 annually in tax-deferred savings in the new 457(b) plan. Employees will have the choice to enroll in either or both plans.
To read a UC news release, click here.