Tax Sheltered Investment Section 403(b) and Section 457

Tax Sheltered Investment Programs
and Deferred Compensation Plan

Introduction:

University employees are eligible to participate in a tax-sheltered investment program through the payroll deduction method as authorized under Section 403(b) and Section 457 of the Internal Revenue Code. These investment plans allow employees to contribute a part of their income on a tax-deferred basis to qualified retirement plans. When employees receive benefits from their tax sheltered investment, the payments will be reportable as income for tax purposes. Since the reportable income employees receive at retirement is likely to be less than their income while working, they usually gain a tax advantage.  Employees may participate in both a 403(b) program and the State of Missouri Deferred Compensation Plan (457 Plan).

403(b)

All employees (except student workers) may elect to participate in a tax-sheltered investment program under Section 403(b) of the Internal Revenue Code. This voluntary option also includes the opportunity to save under a 403(b) Roth account. The Office of Human Resources website, http://www.missouristate.edu/human/approv.html contains additional information such as the written Plan Document and the available vendors. Employees interested in participating in a tax-sheltered investment program must contact an agent from one of the approved companies listed on the website. Additional information about investment options can also be obtained from each of the vendors. From this website employees may access the "Retirement Manager."

To START or STOP a 403(b):  

Employees wishing to start a 403(b) should first contact a company representative from the list of approved 403(b) companies shown below.  Enrollment forms for TIAA are in the Payroll Office.

Retirement Manager is a convenient, secure, Web-based access point to help employees manage their retirement 403(b) plan accounts anytime and anywhere, 24 hours a day, seven days a week. To gain access employees must enroll in the Retirement Manager. See instructions in "How to Enroll in Retirement Manager." The "Employee Unique ID" referred in the instructions is the M#. Simply go to https://www.myretirementmanager.com/.

You can use the Retirement Manager site to:

• Learn about your retirement savings plan.
• Request loan and hardship withdrawal certificates.
• Request an in-service exchange or severance of employment certificate.
• Change your Retirement Manager account password.
• Read educational articles on a range of financial planning topics.
• Calculate what you will need to stay on track for retirement with easy-to-use financial calculators.

COMPANIES APPROVED TO WRITE
SECTION 403(b) PROGRAMS

  For quick access to a specific company's web site, simply click on the company's name if it is underlined.

Section 457 Deferred Compensation

Information on the Section 457 Plan can be found at: https://mo.ingplans.com/csportal/welcome.do

Section 457 Deferred Compensation General Information and Policies:     

• The Section 457 State of Missouri deferred compensation plan is administered by ING.
• Contributions to a 457 plan are limited by the Internal Revenue Service (IRS) to the lesser of $16,500 (2009) or 100% of gross annual salary.
• The rules for exceeding the deferral on the 457 plan differ from the 403(b) plan.  ING will be responsible for calculating and monitoring contributions that exceed the General Limit.
• An employee who qualifies for a "Catch up" provision should direct his/her questions to the ING office in Jefferson City, Missouri, at   (800) 392-0925.
• Employees may participate in a 457 and a 403(b) plan.  

To START a 457:  

Employees must contact the ING office in Jefferson City, Missouri at (800) 392-0925 (Opt 1) or (573) 761-5445 (ext. 2107) to speak with our service area representative, Ms. Deborah Taylor.

The ING Representative will assist the employee in completing the appropriate forms and will forward the forms to Jefferson City for processing.

ING will forward documentation to the University's Payroll Office indicating the amount and the date to start the salary deferral. 

Without the confirming documentation, the University will not initiate any salary deferrals.  

To CHANGE or STOP a 457:  

Contact the ING Representative who will assist the employee in completing the appropriate forms and will forward the forms to Jefferson City for processing.

ING will forward documentation to the University's Payroll Office indicating the amount and the date to start the new salary deferment.

Without the confirming documentation, the University will not change or stop any salary deferments.

Revised 04/09