Voluntary Retirement Plans
KU Medical Center employees can choose from two voluntary retirement plans, a 403(b) plan and a 457 deferred compensation plan.
403(b) Voluntary Retirement Plan
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.
How it works
- Your investment compounds tax-free until you start taking money out of your plan. 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, 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.
Employees participating in, or in a waiting period for either KPERS, KP&F or the Board of Regents Retirement Plans are eligible to participate.
- For 2023, most employees may defer up to $22,500. If you are age 50+, you may contribute an additional $7,500. If you have more than 15 years of service, you might be eligible to 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 that has been approved by the Kansas Board of Regents VTSA Companies. These companies offer various types of investments (e.g., corporate bonds, long term mortgages, common stocks, etc.).
An employee only needs to contact an authorized representative from either TIAA or Voya. Please click on the links below for online enrollment services through these two vendors:
- Voluntary Retirement Plan Document
- KUMC Benefits, 913-588-5080
- Wichita School of Medicine Campus: 316-293-1803
- Wichita Campus: 316-293-2615
457 Deferred Compensation Plan
Deferred compensation is a voluntary defined contribution retirement plan established by the state under IRS Code 457 to help employees provide a supplement to their retirement income. Deferred compensation reduces income taxes while helping retirement savings grow.
How it works
- The employee decides how much money to defer based on IRS limits.
- The amount is automatically invested in the investment options chosen by the employee.
- The employee currently pays no federal or state income taxes on the deferred amounts or on any of its earnings.
- The employee pays no up-front administrative charges or annual fees, so 100 percent of the employee's contribution is invested in the employee's account.
- KPERS / Great West Office: 1-800-232-0024
- KUMC Benefits Office: 913-588-5080
- Deferred Compensation: KPERS / Great West Website