A voluntary 403(b) retirement plan permits you to make contributions to an investment company without paying tax during the current year on the amounts invested. Additionally, until you start taking money out of such a plan your investment compounds tax-free. It is only when you receive money at retirement that you will be taxed - usually at a lower level than during your prime earning years. (In certain circumstances early withdrawal can incur substantial tax penalties.) You may also make after-tax contributions to a Roth 403(b) plan. Contributions to a Roth 403(b) offer you the potential for tax free income when you retire. For details please read your company's prospectus or check with your financial planner.
Depending on whether you chose a life insurance company or a mutual fund, you will be guaranteed a lifetime income, or periodic withdrawals based on your life expectancy. The amount of lifetime income depends on the amount of money paid in, earnings accrued on that money, and the option selected.
For additional information about the Voluntary Retirement Plan, please visit the Kansas Board of Regents website.
Employees participating in, or in a waiting period for either KPERS, KP&F or the Board of Regents Retirement Plans are eligible to participate.
Most employees may defer $17,500. If you are age 50+, you may contribute an additional $5,500. If you have more than 15 years of service, you may contribute up to an additional $3,000. The Benefits Office will calculate your maximum deferral taking into account these and other IRS limits.
You may contribute to both a voluntary pre-tax 403(b) and a Roth after-tax 403(b). You may use different companies for your plans. However, your total contributions may not exceed the IRS limits for 403(b) plans.
An eligible employee may contribute to a retirement plan with any company which has been approved by the Board of Regents. These companies offer various types of accounts in which to invest (e.g., corporate bonds, long term mortgages, common stocks, etc.). VTSA Companies Authorized through the Kansas Board of Regents Plan.
An employee need only contact an authorized representative who will process the required forms to begin a retirement plan. Contact the Benefits Office for names of authorized representatives. An exception is TIAA/CREF. The Benefits Office handles the applications for that company. Download Investment Agreement - Pre-Tax Voluntary Investment Agreement Form for the pre-tax 403(b) or Investment Agreement - Roth After-Tax for the Roth 403(b).
Please feel free to contact KUMC Benefits, 913-588-5087 with any questions. The Wichita School of Medicine Campus contact is Leona Johnson, (316) 293-1803.