STATE UNIVERSITY OF NEW YORK

Voluntary Savings Plan

These are important details regarding this plan.

ELIGIBILITY

You are eligible to participate immediately in this plan.

CONTRIBUTIONS

This plan allows only employee contributions.

EMPLOYER MATCHING

State University of New York does not make matching contributions with this plan.

VESTING

"Vesting" refers to employees' right, to receive retirement benefits whether or not they continue their SUNY employement. 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

You have a variety of options1 when it’s time to take income from this plan:

  • 59½ in Service

    You generally can withdraw funds, attributable to elective deferrals, from your account while still employed once you have reached age 59½. The amount you can withdraw is subject to your plan's rules.
     
  • 90-24 Transfer

    You can directly transfer your 403(b) funds from one approved financial provider to another under your employer's retirement plan, or to another 403(b) annuity contract or mutual fund under another plan, as your plan and contract permit. This transfer is not considered a taxable distribution.
     
  • 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.
       
  • Hardship Distribution

    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.
       
  • 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.
       
  • 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.
     
  • 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. Talk to your benefits office for details.
     
  • 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.

    • These withdrawals are not available from TIAA Traditional Account balances.
       
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.

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.

TAXATION

Because you make contributions with pretax dollars, federal income taxes are deferred on supplemental plans until you begin taking withdrawals later on.

An IRS 10% tax penalty will generally apply to cash withdrawals made before age 59½, unless you have medical expenses exceeding the tax-deductible limit or you become disabled, die or retire after reaching age 55. No IRS 10% tax penalty is applied to payments made to children or to a divorced spouse in accordance with a qualified domestic-relations order. This information is not intended to be relied upon as tax advice.

You are encouraged to consult a tax advisor.

LOANS

Employees may borrow up to 45% of the accumulated value of their contracts, subject to Internal Revenue Service regulations and rules promulgated by the investment provider. Current IRS regulations set a maximum aggregate loan balance of $50,000.

If you have accumulations in other employer's plans, you may be able to transfer or roll them over to the SUNY Voluntary Savings Plan to increase your maximum loan amount.


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.

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