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 ask yourself - where do you want to be in retirement? Like most, you’ll probably need your own personal retirement savings to help fund that vision. The UT Saver TSA Plan is designed with that extra income need in mind.
Whether you are in the TRS or the ORP, you can enjoy the benefits of systematically saving pre-tax dollars by contributing to the UTSaver TSA Program. 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.
Under the UTSaver TSA Program, you may choose to contribute under either a 403(b)(1) variable annuity contract, issued by Voya Retirement Insurance and Annuity Company, or a 403(b)(7) custodial account offered through Voya Financial Partners, LLC, which offers mutual funds.
Highlights of the UTSaver TSA include:
- Choices and control of your investments.
- The flexibility to invest on a pre-tax or 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, prompt account services.
- Retirement information and services 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, individual assistance.
Contributions
You can choose how much of your paycheck to contribute to the UTSaver TSA. Your employer then forwards your contributions to Voya and 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 your maximum deferral amount. Pre-tax contributions and earnings, if any, are not subject to federal income tax until the funds are withdrawn or paid as a retirement annuity.
You can always change your contribution amount at any time, day or night – even at midnight on a Sunday! You’ll see the change take place within a couple payroll periods.
Roth 403(b)
Voya's UTSaver TSA Program 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 after-tax payroll deductions is up to you.
You may also want to check out the Roth Contribution Comparison Calculator. This interactive calculator is designed to help compare the possible results of investing on a Traditional (pre-tax) and/or Roth (after-tax) basis.
If you do not yet participate in the UTSaver TSA with Voya, you may select the Roth 403(b) option when you enroll. If you already have a Voya UTSaver account, you can add the Roth 403(b) contribution option to your account. Please contact your dedicated UT approved financial professional to learn more.
Loans
Loans are only available under the UTSaver TSA variable annuity contract. A participant must have an account value of at least $2,000 and may borrow up to 50% of their UTSaver TSA value, not to exceed $50,000. The maximum term for all loans is five years. If the loan is used to acquire your principal residence, the maximum loan term may be extended to 20 years. Loan repayments are made quarterly. 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
You may take a distribution from your UTSaver TSA account after age 59½ while still employed without the IRS 10% premature distribution penalty tax.
Distributions after severance from employment
Any time after severance from employment or disability. 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 that accepts rollovers or IRA.
Required Minimum Distributions 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.