403(b) Retirement Plan - Effective 11/15/13
These are important details regarding this plan.
Eligible employees are eligible upon hire to make supplemental pre-tax contributions to the Retirement Plan.
To become an eligible participant in the Non-elective or Matching Contributions employees must have completed 1 year of service (defined as completing 1,000 hours of service in any plan year following from the employee’s date of hire). Credit for years of service performed with other institutions of higher education will also be immediately recognized for the purposes of eligibility once hired with the College, if applicable.
The Human Resources Office can provide you with the requirements that apply to you.
- Student employees are not eligible to participate in the Plan.
- Casual employees and adjunct faculty who have not completed one year of service are not eligible for contributions or College match.
- Interns are not eligible.
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Employees can make their own supplemental pre-tax contributions to the Retirement Plan immediately upon hire.
The Employer will make contributions to the plan on your behalf. The amount of the contribution is based on a formula that takes into consideration your salary both above and below the prevailing Social Security Wage Base. For a more detailed explanation of this formula, please call or visit the Human Resources Office.
The Hampshire College 403(b) Plan includes an employer match based on years of service and employee contribution level. For more details and specific contribution levels please see your Human Resources professional.
"Vesting" refers to an employee's right, usually earned over time, to receive some retirement benefits regardless of whether or not they remain with the employer. Your contribution to this account will be 100% vested immediately.
Your employer offers you a variety of investment choices from an array of asset classes. You can see a list of the investment choices under this plan on the Investment Choices page.
Expenses vary from investment to investment. To learn about expenses associated with an investment, see a list of the investment choices under this plan on the Investment Choices page, and read the Fact Sheet or the prospectus for that investment.
You have a variety of options1 when it’s time to take income from this plan:
This plan is designed to provide you with income throughout your retirement. Leaving money in your account may allow the funds to grow on a tax-deferred basis.
You can choose to receive income for a set period of two to 30 years, depending on the terms of our contract and your plan's rules (and not to exceed your life expectancy).
Payments stop at the end of the period, during which you will have received all your principal and earnings.
If your plan permits, you can withdraw your elective deferrals (but not earnings) due to financial hardship while still employed.
Generally, you must show an immediate, significant need that cannot be met with other resources, including loans from your retirement plan.
You can receive the current interest earned on your TIAA Traditional Account in monthly payments. Your principal remains intact while you receive the interest.
These payments are generally available to individuals between ages 55 and 70½ when minimum distributions are required.
Lifetime Retirement Income
One-life annuity — provides income for as long as you live.
Two-life annuity — provides lifetime income for you and an annuity partner (your spouse or someone else you name) for as long as either of you live.
One- or two-life annuity with guaranteed period — guarantees income for up to 20 years, as long as the period you choose does not exceed your life expectancy. It ensures that income continues to go to your beneficiaries for the remainder of the guaranteed period if you (one-life annuity) or both you and your annuity partner (two-life annuity) die before the end of that period.
You can withdraw all or part of your account in a single cash payment, depending on your plan rules and the terms of your contracts.
Your right to a lump-sum distribution from your TIAA Traditional Account may be restricted to taking 10 annual payments under those terms.
Minimum Distribution Option
Generally, you must begin taking minimum withdrawals from your account by April 1 following the year in which you turn age 70½ or retire, whichever is later.
This can help you defer the minimum required distribution while keeping you in compliance with federal regulations.
Other in Service
If your plan permits, you can withdraw cash from your account while still employed by your institution, but you generally must meet an IRS-defined "triggering event," such as reaching age 59½, to qualify.
Retirement Transition Benefit
If your contract allows, you can withdraw, in cash, up to 10% of your accumulation at the beginning of a conversion to lifetime annuity income. The amount you withdraw will reduce your lifetime annuity income accordingly.
Single-Sum Death Benefit
A set amount your beneficiary(ies) will receive from your retirement account if you die before taking income.
If your plan doesn't otherwise allow cash distributions, upon separation from service you can withdraw your entire retirement savings if your TIAA Traditional Account value does not exceed $2,000 and your overall account balance is below a limit set by your employer's plan (typically $4,000). If your plan does allow cash distributions, upon separation you may be able to withdraw your TIAA Traditional accumulation if the value does not exceed $2,000. Talk to your benefits office for details.
If your plan allows, you can choose to receive regular income payments (minimum $100) on a semimonthly, monthly, quarterly, semiannual or annual basis. You can increase, decrease or suspend the payments at any time.
These withdrawals are not available from TIAA Traditional Account balances.
TPA to Cash
If your plan allows, you can withdraw your TIAA Traditional Account accumulation through a Transfer Payout Annuity (TPA) in 10 approximately equal annual payments. A lump-sum payment, subject to a surrender fee, may be available depending on your plan rules and the terms of your contract.
This plan allows you to receive a cash withdrawal. This may be restricted by the terms of your TIAA-CREF contracts. Taxes and penalties may apply.
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Because you make contributions with pretax dollars, federal income taxes are deferred until you begin taking withdrawals later on.
No taxes are due on contributions and earnings until the money is withdrawn, but because these plans are intended primarily for retirement, you can generally withdraw funds only after termination of employment (subject to plan rules).
For additional information and guidance, contact your tax advisor.
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This plan does not offer a loan feature from the employer contribution account balance.
1 The availability of certain distributions may depend on the type of contract underlying your plan. Also, if you're married, your right to choose an option may be subject to your spouse's right to survivor benefits. Talk to your benefits office for details.