The University
of Georgia offers a program which allows you to
invest a specific amount of your salary on a pre-tax
basis. Sections 403(b) and 457(b) of the Internal
Revenue Code allow employees of colleges, universities,
and other nonprofit organizations to place a portion
of their compensation in an annuity contract. This
portion of compensation and the earnings will not
be taxed currently, but will be taxed instead at
the time you receive it.
403(b)
and 457(b) contribution limits for 2008
The information provided is based on
the Board of Regents understanding of current tax
law. This information is not intended as tax advice.
You should seek the advice of your own tax adviser
with respect to your individual circumstances.
Employee
yearly maximum contribution: $15,500
Employees
age 50 or older: additional $5,000 for a total of
$20,500
Employees
with 15 or more years of full time service may be
eligible for additional “catch up” provisions
– consult your 403(b) or 457(b) vendor representative
or your tax adviser
For
2008, an employee may contribute the above maximum
contribution amounts, based on his/her age, to both
a 403(b) plan and a 457(b) plan.
Enrollment
Employee Benefits will assist you in making the
salary reduction you authorize and remitting the
amount to the annuity company each month on your
behalf.
If you
wish to purchase an annuity contract, you must select
an annuity company and make application directly
to them. The Employee Benefits Department maintains
a list
of investment companies that are authorized
to write new contracts.
Read more
about the tax deferred savings program.
View forms
related to the UGA tax deferred savings program.
If you have any
questions about your benefit options, please contact
Employee Benefits at
706-542-2222 or e-mail benefits@uga.edu.
Revised January 4, 2008
