Emailed to all employees on August 6, 2013.
TO: NMSU Employees
FROM: Benefit Services
RE: 403(b)/457(b) UNIVERSAL AVAILABILITY NOTIFICATION
DATE: August 1, 2013
This notice is to inform you that, as an employee of the New Mexico State University, you are eligible to participate in the 403(b) and 457(b) voluntary retirement plans.
Who is Eligible?
All employees are eligible to participate in the plans, including temporary employees, student employees and Graduate Assistants. If you are currently not a contributing member and wish to become one, you must first open an account with one of the approved providers.
Who is an Approved Provider?
NMSU has agreements with 13 investment companies to provide opportunities for employees to invest in their retirement. All companies offer the 403(b) plan and four offer the 457(b) plan.
How do I Make My Salary Deferral Elections?
After opening an account with one of the Plan’s approved provider, you will need to complete the appropriate Salary Reduction Agreement. By completing the Salary Reduction Agreement, you are confirming that you have established the necessary accounts with your selected provider(s) to participate in the Plan. Your Salary Reduction Agreement also confirms the proper amount of deferral you intend to have withheld from each paycheck.
How Much Can I Contribute?
For 2013, you may contribute up to $17,500 to your 403(b) and up to $17,500 to your 457(b) account. If you are age 50 or over, you are eligible to contribute an additional $5,500 in 2013, for a total of $23,000 to each 403(b) and 457(b) account (total contributions of $46,000 for the combination of both accounts). Some employees may be eligible for other “catch up” amounts so please contact your provider for details.
Contributions to the 403(b) account are made on a pre-tax basis. The 457(b) account has a Roth feature that allows post tax contributions in addition to, or in place of, the pre-tax contributions. Please speak to your provider regarding the benefits of pre-tax and post-tax contributions.
How Can I Access My Funds After I Contribute?
As these plans are intended for retirement, access to the funds while you are employed with NMSU are limited. Please be sure to read the plan documents available on the NMSU benefits website. Your account with the provider must be established prior to submitting your Salary Reduction Form to your contributions are received and posted to your account in a timely manner.
If you have any questions, you may contact Benefit Services at firstname.lastname@example.org or 575-646-8000.