VALICwww.valic.com UAHuntsville offers additional 403(b) programs through VALIC - Variable Annuity Life Insurance Company. This voluntary tax shelter program has no UAH matching contributions. Eligibility: Full-time regular employees are eligible for the program. Costs: Employees may contribute a percentage of salary or a fixed dollar amount. The IRS allows tax-shelter contributions up to a maximum of $15,500. Employees over age 50 may tax defer an additional $5,000 for a total of $20,500. This maximum must include all 403(b) contributions. Vesting: Vesting is immediate!! Benefits: This is a defined contribution plan. The amount of retirement income is determined by the number of years of participation, the amount of premiums paid each year, age at time of retirement, the experience of the investments, the income option selected at retirement and other factors. Taxes: Participation is on a tax-deferred basis. If employees contribute on a tax-deferred basis, the result is less tax withheld and more take-home dollars in each paycheck. These contributions are not taxed until they are withdrawn, which usually occurs at retirement when the applicable tax rate will be lower for most individuals. Early lump sum withdrawals will be subject to the IRS 10% penalty and the 20% withholding tax. Tax Limits: The IRS limit on 403 (b) tax deferrals is $15,500 per year or $20,500 per year for employees over age 50. To learn more about VALIC visit their web site at: valic.com |
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