UTSaver TSA 403(b) Plan

Below are the important features of the UTSaver Tax-Sheltered Annuity (TSA) Plan. This website is intended to be a summary of the plan provisions. If a conflict exists between the information contained within and the plan document, the plan document provisions prevail. For more information, please contact your dedicated UT approved financial professional.

Your Teacher Retirement System (TRS) or Optional Retirement Program (ORP) pension gives you a good start toward your retirement years, but think about where you want to be in retirement. Like most, you’ll probably need your own personal retirement savings to help fund that vision. The UTSaver TSA is designed with that extra income need in mind.

Whether you are in the TRS or ORP, you can enjoy the benefits of systematically saving pre-tax dollars by contributing to the UTSaver TSA. The UTSaver TSA is a voluntary supplemental retirement savings plan authorized under Section 403(b) of the Internal Revenue Code. Pre-tax contributions to the UTSaver TSA will reduce your currently taxable income.

Highlights of the UTSaver TSA include:

  • Choice in and control of your investments.
  • The flexibility to invest on a pre-tax or Roth after-tax basis, depending on your specific needs.
  • The ability to take your vested account balance with you if you terminate employment with the University of Texas System.
  • Personalized account services.
  • Retirement information and resources that continue even after you retire.
  • A variety of payout options at retirement.
  • A declared interest rate on the Voya Fixed Plus Account II (offered through Voya Retirement Insurance and Annuity Company).
  • Unlimited transfers between variable investment options, subject to Voya’s market timing and excessive trading policy.
  • Personalized retirement planning support and assistance.

Contributions

You can choose how much of your paycheck to contribute to the UTSaver TSA. Your employer then forwards your contributions to Voya to be invested according to your instructions. The IRS determines how much you may defer in any given year, and catch-up contribution options are available starting at age 50. Your Voya financial professional can help you calculate the maximum deferral amount based on your age. 

As a voluntary retirement savings plan, you can change your contribution amount to the UTSaver TSA at any time. You’ll see the change take place within a couple payroll periods.

Roth 403(b)

The UTSaver TSA also offers you the opportunity to make after-tax contributions under the Roth 403(b) option. Whether it better suits your personal financial situation to contribute to the UTSaver TSA with pre-tax or Roth after-tax payroll deductions is up to you.

To consider if the Roth option is right for you, consider visiting the Roth Contribution Comparison Calculator. This interactive calculator is designed to help compare the possible results of investing on a pre-tax and/or Roth after-tax basis.

You can elect to save on a Roth after-tax basis when you enroll in the UTSaver TSA. If you already have a UTSaver account, you can add the Roth contribution option at any time. Please contact your dedicated UT approved financial professional to learn more.

Loans

Loans are available under the UTSaver TSA to all participants with an account value of at least $2,000. You may borrow up to 50% of your UTSaver TSA account value, not to exceed $50,000. All applications for loans must be submitted to the UT System Office of Employee Benefits for approval. The maximum term for all loans is 5 years, unless the loan is used to acquire your principal residence. The maximum loan term for a principal residence may be extended to 20 years. Loan repayments are made quarterly. Please note: loans will reduce your account balance, may impact your withdrawal value and limit participation in future growth potential. Other restrictions may apply.

Withdrawals

Financial Hardship / Unforeseeable Emergency

Withdrawals may be available for unreimbursed medical expenses, purchase of a primary residence, tuition expenses, prevention of a foreclosure or eviction from your primary residence, payments for funeral expenses, or repair of damage to principal residence due to casualty.

Distributions while employed

While still employed, you may take a distribution from your UTSaver TSA account after age 59½ to avoid an IRS 10% premature distribution penalty tax.

Distributions after severance from employment

After leaving employment, you may roll over funds into other types of employer-sponsored plans or IRAs. If your distribution is an eligible rollover distribution, 20% of the amount automatically must be withheld for federal taxes unless you make a direct rollover to an eligible retirement plan or IRA that accepts rollovers.

Required Minimum Distributions 

Required Minimum Distributions (RMDs) must begin on or before April 1 of the calendar year following the later of the calendar year in which you reach age 73 or retire.

Distributions

When you are ready to retire, you may have several disbursement options to choose from. Please contact your dedicated UT approved financial professional to learn more about the withdrawal options that are available for your account.

  • Request a full or partial withdrawal (may be subject to federal withholding and possible tax penalties).
  • Utilize the funds to purchase a single premium immediate annuity.
  • Rollover to an IRA or another eligible retirement plan.

 

Investment adviser representative and/or registered representatives of, and securities and investment advisory services offered through Voya Financial Advisors, Inc. (member SIPC). Investment advisory services are only offered through Investment adviser representatives of Voya Financial Advisors.

You should consider the investment objectives, risks, and charges and expenses of the variable product and its underlying fund options; or mutual funds offered through a retirement plan, carefully before investing. The prospectuses/prospectus summaries/information booklets contain this and other information, which can be obtained by contacting your local representative. Please read the information carefully before investing.

Mutual funds under a trust or custodial account agreement are intended to be long-term investments designed for retirement purposes. If withdrawals are taken prior to age 59 ½, an IRC 10% premature distribution penalty tax will apply, unless an IRS exception applies. Account values fluctuate with market conditions, and when surrendered, the principal may be worth more or less than the original amount invested. A group fixed annuity is an insurance contract designed for investing for retirement purposes. The guarantee of the fixed account is based on the claims-paying ability of the issuing insurance company. Although it is possible to have guaranteed income for life with a fixed annuity, there is no assurance that this income will keep up with inflation. Money taken from the plan will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax benefit, as tax deferral is provided by the Plan. Annuities may be subject to additional fees and expenses, to which other tax-deferred funding vehicles may not be subject. However, an annuity does offer other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.

For 403(b)(7) custodial accounts, employee deferrals and employer contributions (including earnings) may only be distributed upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: hardship withdrawals are limited to: employee deferrals and '88 cash value (earnings on employee deferrals and employer contributions (including earnings) as of 12/31/88).