Universal Availability Notice*
Tax Deferred Savings Plan (Section 403(b) Plan)
Offered By UNIVERSITY OF MARY WASHINGTON (UMW)
The University of Mary Washington is a not-for-profit public education institution eligible to offer a retirement savings program as described under section 403(b) of the Internal Revenue Code (commonly referred to as a “403(b) Plan”). This notice is to make you aware of the 403(b) Plan and provide enrollment information. Under the 403(b) Plan, employees may contribute on a pre-tax basis to a 403(b) account, in which any investment earnings are tax-deferred until they are distributed. The employee is responsible for investigating and selecting an investment service provider (a “vendor”) from among the vendors available under the UMW 403(b) Plan and selecting from the investments offered by the vendor. It is your responsibility to understanding the tax and investment consequences of the custodial account/mutual fund or annuity selected. You should also understand the costs of the investment selected and any administrative charges. You are encouraged to seek investment, legal, and/or tax advice. IRS Publication 571 (Tax Sheltered Annuity Programs for Employees of Public Schools) is available at www.irs.gov (the IRS’s website) for further information and reference.
Who is eligible to participate: All employees are eligible to participate in the 403(b) plan and elect to have elective deferrals made on their behalf immediately upon becoming employed by UMW. However, a student hired through the University Financial Aid Department’s student employment program is not eligible to participate in the 403(b) Plan.
Cancellation by the Employee: You have the right to cancel your future 403(b) contributions at any time. To do so, contact the Payroll department and complete any required form(s) to discontinue future salary reductions.
Termination of Payroll Deduction: In certain circumstances your employer may automatically stop your 403(b) contributions. If your contributions will exceed the IRS annual contribution limit, your employer will automatically terminate payroll deductions to prevent excess contributions. If the University of Mary Washington is notified by a vendor that it has no record of your account, deductions will be stopped until the problem is resolved.
Annual Contribution Limits: The contribution limit, set annually by the IRS, is $23,000 for 2024. Also, if you have at least 15 years of service with the University of Mary Washington and/or you are at least 50 years of age by the end of the year, you may qualify for special catch-up provisions. (Contribute an additional $7,500.)
Vendors (Investment Providers): The University of Mary Washington has a list of the current investment providers available at Office of Human Resources website, optional benefits at 403b-Programs
Required Form: To initiate payroll deductions to a 403(b) account you must execute the Salary Reduction Agreement (SRA) form. The SRA should be completed by you and returned to Office of Human Resources or Payroll for processing. There may be other documents, which are to be executed between you and the vendor.
*This Notice should not be regarded as tax or legal advice. Your employer cannot provide you with tax or legal advice. Your employer does not endorse, recommend or guarantee the 403(b) investment offered by any vendor. Please contact your financial representative or tax professional with any questions.