Retirement Plans
UNCA HR
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03/31/2020
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Description
Learn about the retirement plans available from the University of Nebraska.
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- [00:00:06.895]The University of Nebraska offers
- [00:00:08.765]opportunities that help you plan for tomorrow.
- [00:00:11.931]Employees have three options for retirement planning.
- [00:00:16.281]Basic Retirement 401(a)
- [00:00:18.835]Supplemental Retirement 403(b) and
- [00:00:22.501]Deferred Compensation Retirement 457(b)
- [00:00:26.344]With all three plans, money is deducted
- [00:00:28.734]from your paycheck and contributed
- [00:00:30.763]to your retirement account.
- [00:00:32.193]Two investment companies offer options
- [00:00:34.628]for investing your retirement savings:
- [00:00:36.594]TIAA-CREF and Fidelity Investments
- [00:00:40.594]Each of these companies offers a variety of
- [00:00:43.100]investment options among the categories of
- [00:00:45.983]Money Market, Bonds, Stocks
- [00:00:49.338]Guaranteed Annuity and Lifecycle Funds
- [00:00:52.518]For more information about investment options,
- [00:00:54.769]both investment companies offer educational resources
- [00:00:58.077]and financial counseling to help you make your decisions.
- [00:01:02.379]With all three retirement plans, your contributions
- [00:01:05.344]are immediately vested upon participation.
- [00:01:08.304]That means if you leave the university,
- [00:01:10.515]you can take both your contributions
- [00:01:12.757]and the university’s contributions with you.
- [00:01:16.527]Now let’s explore the individual retirement plans
- [00:01:19.707]offered at the university…
- [00:01:21.536]starting with the Basic Retirement 401(a) Plan.
- [00:01:25.005]The university has a semi-annual enrollment period
- [00:01:28.125]for the basic retirement plan.
- [00:01:30.213]This means you will be enrolled either
- [00:01:32.697]February 1 or September 1 following
- [00:01:35.094]two years of service to the university or
- [00:01:37.864]if you establish proof of two years of prior
- [00:01:40.714]service at another educational institution.
- [00:01:43.901]If you’re between the ages of 26 and 29,
- [00:01:47.301]participation is voluntary.
- [00:01:49.283]At the age of 30, you’re required to participate.
- [00:01:52.477]Both you and the university contribute to the
- [00:01:55.547]plan based on a percentage of your salary.
- [00:01:58.483]You can choose between two levels of contribution
- [00:02:01.863]depending on what percentage you want
- [00:02:04.161]taken out of your paycheck each month.
- [00:02:06.094]Tier 1 takes a lower percentage than Tier 2
- [00:02:09.708]and also offers less of a university contribution than Tier 2.
- [00:02:15.137]All contributions are withheld from your
- [00:02:17.577]paycheck on a tax-deferred basis.
- [00:02:19.703]That means it’s not included as part of your income
- [00:02:23.379]so your federal and state income tax is reduced.
- [00:02:28.952]Next, let’s review the Supplemental Retirement 403(b) Plan.
- [00:02:34.192]You can participate in this plan no matter how old you are
- [00:02:37.622]or how long you’ve been at the university.
- [00:02:39.772]Participation is voluntary.
- [00:02:41.372]Contributions to the plan are withheld each pay period
- [00:02:44.607]either as a percentage or a flat dollar amount.
- [00:02:47.771]You have two options depending
- [00:02:50.042]on how you want to pay taxes.
- [00:02:52.092]With a traditional 403(b),
- [00:02:54.179]your contributions to the fund aren’t
- [00:02:56.339]included in your taxable income…
- [00:02:58.349]you don’t pay taxes on that amount.
- [00:03:00.889]But when you withdraw the funds,
- [00:03:03.034]your investments and earnings are taxed as income.
- [00:03:06.254]With a Roth 403(b),
- [00:03:08.800]your contributions each pay period are
- [00:03:11.298]not tax-deductible… you pay taxes on
- [00:03:13.897]your money before you invest it.
- [00:03:16.507]But it’s tax-free when you withdraw the funds.
- [00:03:20.890]The IRS limits the amount of money you
- [00:03:23.003]choose to have deducted from your paycheck
- [00:03:25.283]and invested in your retirement account…
- [00:03:27.253]known as the amount you elect to defer.
- [00:03:29.458]There are different limits depending on
- [00:03:31.632]factors like age and years of service.
- [00:03:35.699]Finally, let’s take a look at the
- [00:03:37.685]Deferred Compensation Retirement 457(b) plan.
- [00:03:41.685]Any employee at the university can participate in this plan,
- [00:03:45.530]as long as they elected to defer the maximum
- [00:03:48.320]amount allowable to the university’s
- [00:03:50.400]Supplemental Retirement Plan.
- [00:03:52.291]Participation is voluntary.
- [00:03:54.218]Contributions are withheld each pay period
- [00:03:57.949]as a flat dollar amount and are made on a tax-deferred basis.
- [00:04:01.949]The money isn’t included in your income
- [00:04:04.511]but you pay taxes later.
- [00:04:07.159]Whether this is your first job…
- [00:04:09.035]or you’ve been part of the workforce for decades…
- [00:04:11.765]the University of Nebraska wants to help you
- [00:04:14.687]reach your retirement goals.
- [00:04:16.527]For more information, contact your campus benefits office.
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