Benefits: Retirement: Supplemental Retirement Options
401(k)
403(b)
457(b)
How to Begin
Supplemental Retirement Programs
Supplemental Retirement Programs
All benefit eligible University employees are eligible to participate in supplemental retirement plans. Faculty, classified and professional staff, enrolled in PERSI as their regular retirement plan, may also enroll in the 403(b), 401(k), and the 457(b) plans. Faculty and professional staff enrolled in the ORP as their regular retirement plan may enroll in the 403(b) and the 457(b) plans.
Supplemental Retirement Investment Options
The 403(b) is a retirement savings plan, which can only be offered by public school systems and other tax-exempt organizations. It is a tax-sheltered annuity where the employee may invest in annuities or mutual funds. It is very similar to qualified plans such as 401(k). It is entirely employee funded; Idaho State University does not contribute to this plan. Payroll deductions are pre-tax. Benefit eligible employees may enroll at any time. To sign up, the employee must complete the salary reduction agreement form and an enrollment form with the company administering the 403(b).
ISU has recently introduced the Roth option as another way to contribute to your 403(b) plan. With this option, you may:
- Contribute after-tax dollars
- Enjoy tax-free distributions, without penalty, when you are age 59 1/2 or older and a distribution is taken five years after the first Roth contribution was made to the contract. Withdrawals of earnings are subject to ordinary income tax and a 10% early withdrawal penalty may apply prior to age 59 1/2.
- Roll over assets into a Roth IRA, or into/from another Roth 403(b) plan that accepts such assets.
- TIAA-CREF and VALIC are the only vendors to accept after-tax roth contributions.
The employee may participate with the following approved 403(b) vendors:
Al Richmond (208) 569-6057 |
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Dalisha Boone (800) 421-0180 |
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Customer Service |
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Greg Finch (800) 842-2776 |
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Mitch Meng |
457(b): Idaho State University also offers employees an opportunity to enroll in an IRC Section 457(b) plan, commonly known as deferred compensation. Benefit eligible employees are able to contribute pre-tax dollars to this plan through payroll deduction to the following companies:
Al Richmond (208) 569-6057 |
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802 West Bannock, |
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Greg Finch (800) 842-2776 |
401(k)-PERSI Choice Plan: The 401(k) Choice Plan is a defined contribution plan, meaning that the amount you receive at retirement is based on your contributions and earnings in the plan. It is only available to active PERSI members. The Choice Plan contains your gain sharing distributions, any voluntary contributions you make, and the earnings on those funds. Payroll deductions are pre-tax. For further details, please refer to the PERSI handbook available online at: http://www.persi.state.id.us/. To enroll, please call toll-free 1-866-ID-PERSI.
How to Begin
To begin participating in these supplemental investment options, please complete a Salary Reduction Agreement with Human Resources. For contribution limits and vendor specific enrollment forms, please contact your supplemental retirement vendor of choice. Contact Human Resources at (208) 282-2517 with questions.