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FAQ - Tax-Deferred Annuity (TDA)
- What are the 2010 tax-deferral limits?
Employees under age 50 in 2010 may tax-defer $16,500.
Employees age 50 or over in 2010 may tax-defer $22,000.
Employees with 15 or more years of service may be eligible to tax-defer an additional $3,000 if they have not made maximum contributions in previous years (contact your state-authorized investment carrier for more information).
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What is the maximum amount an employee can tax-defer in 2010 if he or she makes an additional voluntary contribution (IRC 403-b) and participates in the NJ Deferred Compensation plan (IRC 457)?
Please refer to the chart below:
Plan Under Age 50 Age 50 and Older 403(b) $16,500 $22,000 457 $16,500 $22,000 $33,000
(less than 15 years of service at Rutgers)$44,000
(less than 15 years of service at Rutgers)403(b) catch-up
(at least 15 years of service at Rutgers)+ 3,000 (catch-up) + 3,000 (catch-up) $ 36,000 $ 47,000
- Can I submit a paper form to change my tax-deferral contribution amount or investment carrier?
Yes, you can access the Carrier Allocation/Salary Reduction Agreement form online. Send your completed form to: Payroll Services, 65 Davidson Road, ASB, Room 317, Busch Campus.
- I have never made a voluntary 403(b) contribution. How do I start?
1. Contact a state-authorized investment carrier to obtain the carrier’s enrollment application. Carriers are listed on the back of the Carrier Allocation/Salary Reduction Agreement form.
2. Complete the carrier’s enrollment application and return it directly to the carrier.
3. Complete the Carrier Allocation/Salary Reduction Agreement form. On the top section of the form, indicate either ACTS or ABP (depending on your retirement plan) and check the box for new enrollment. Designate your investment carrier(s) and allocation percentage. On the lower portion of the form, indicate the voluntary percentage you would like to contribute.
4. Send a copy of your completed carrier enrollment application (send the original to the carrier) with the Carrier Allocation/Salary Reduction Agreement form to: Payroll Services, 65 Davidson Road, ASB, Room 317, Busch Campus.
- How do I enroll in the NJSEDCP?
To enroll, you must complete a NJSEDCP enrollment kit and return the completed forms to Prudential Retirement. Enrollment kits are available from University Human Resources. To request an enrollment kit, call UHR at 732-932-3020.
- How can I change my investment carrier?
1. Contact a state-authorized investment carrier to obtain the carrier's enrollment application. Carriers are listed on the back of the Carrier Allocation/Salary Reduction Agreement form.
2. Complete the carrier’s enrollment application and return it directly to the carrier. Send a copy of your completed carrier enrollment application to: Payroll Services, 65 Davidson Road, ASB, Room 317, Busch Campus.
3. If you have your new carrier’s contract number, you can change your carrier online or complete the carrier allocation section of the Carrier Allocation/Salary Reduction Agreement form and return the form to: Payroll Services, 65 Davidson Road, ASB, Room 317, Busch Campus.
- Are there other plans available to Rutgers employees in addition to a 403(b) plan?
Yes, as a Rutgers employee, you can also participate in the New Jersey State Employees Deferred Compensation Plan (NJSEDCP). Through this plan, you can contribute an additional $16,500 (for a total of $33,000 using both plans) for employees under age 50 and $22,000 (for a total of $44,000 using both plans) for employees. The Deferred Compensation plan is an IRC 457 plan administered by Prudential Financial and offers a broad array of investment options.
For more information, download the Prudential NJSEDCP brochure, visit Prudential’s Deferred Compensation website, or contact Prudential at 866-657-3327.
- If I reach my maximum limit before the end of the year, will Payroll stop future deductions?
Yes, Payroll has a procedure in place to stop future deductions in order to prevent employees from exceeding maximum tax-deferral limits. When this occurs, the employee will receive a notification letter from University Human Resources.
