ITHACA COLLEGE

Ithaca College 403(b) Retirement Plan

These are important details regarding this plan.

ELIGIBILITY

Ithaca College 403(b) Retirement Plan
Auto Enrollment
New eligible employees, hired after June 1, 2013, are automatically enrolled at a 5% employee contribution rate. Ithaca College will provide a matching contribution. Participation is voluntary and employees can change or stop their contributions at any time.

Eligibility requirements for voluntary participation in this plan:
  • Eligible faculty members holding the rank of Professor or Associate Professor, or Administrators with Group I Benefits:

    May participate in the plan immediately provided at least age 21.
  • For eligible faculty members (other than those holding the rank of Professor or Associate Professor), eligible Administrators and Staff with Group II benefits*:

    May participate after the completion of 1 year of eligible service at the college provided at least age 21.
*Group II employees who were participating in an employer-funded 403(b) or 401(a) retirement plan under the terms of a retirement plan of a two- or four-year college or university in the twelve-month period immediately preceding employment at the Institution are eligible to participate immediately.
 
Ithaca College 403(b) Retirement Plan (Elective Deferral)
You are eligible to participate immediately in the plan.

*Students are not eligible to participate in this plan.

CONTRIBUTIONS

This plan allows you to make contributions in addition to those made by Ithaca College.

EMPLOYER MATCHING

When you set aside 5% of your annual salary on a tax deferred basis to the plan, Ithaca College will provide a matching contribution of 9% of your salary.

VESTING

"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.

INVESTMENTS

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

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.

DISTRIBUTIONS

When it's time to decide how to take income from your Ithaca College 403(b) Retirement Plan, you have a variety of options*:

  • Fixed Period — 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.
     
  • Interest Only — You can receive the current interest earned on your TIAA Traditional Account in monthly payments. Your principal remains intact while you receive the interest. (Note: 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.
     
  • Lump Sum — 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). Cash distribution is available at age 55 or older.
     
  • 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.
     
  • Rollover — If you have had an IRS-defined "triggering event," and your plan allows withdrawals, you can roll over your accumulations to another retirement plan that will accept them or to an Individual Retirement Account (IRA). Direct rollovers — from one account to another — are nontaxable and not reported as income to the federal government. Your plan's rules specify when you are eligible for a distribution.
     
  • 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.
     
  • Small-Sum Distribution — 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.
     
  • Systematic Withdrawals — 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. (Note: 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.


* 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.

Your Ithaca College Basic Retirement 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.

The Ithaca College Basic Retirement 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.

TAXATION

Any earnings on the contributions you make to a retirement choice plan can grow tax deferred. The taxable income you'll pay upon withdrawing funds depends on the type of contributions you make to the plan.

If you make pretax contributions, withdrawals are fully taxable as ordinary income. If you make after-tax Roth 403(b)/401(k) contributions, the contributions are always tax free when you begin to withdraw from the plan. However, in order to receive the Roth earnings tax-free you must meet the five year seasoning period and attain age 59½ or if you are disabled. The payment of Roth 403(b)/401(k) accumulations will be on a pro-rata basis including both contributions and earnings as required by the Internal Revenue Code.

For either type of contribution, withdrawals before age 59½ are generally subject to a 10% early withdrawal penalty on the taxable portion of the amount received.

The tax information contained herein is not intended to be used, and cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed herein. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

LOANS

This plan does not offer a loan feature.


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.

C35711, C41197, C47831