UNC Asheville employees have several supplemental retirement programs available to them through voluntary payroll deductions. These options are not matched by the State but can offer pretax savings with a variety of investment options or some post-tax Roth options. You may enroll at any time, your account is always 100% vested and you may change the contribution rate at any time.
To help navigate the various programs, the State has put together a charted comparison.
North Carolina 401(k) Plan
Administered by Prudential since 2003, the 401k offers a variety of fund options to qualified employees. In order to participate in the 401k program, the employee must be eligible for benefits and in a permanent status. 401(k) participants can contribute up to 80% of their salary not to exceed the IRS specified contribution limit. The maximum annual contribution limit will be $18,000 for 2016 with a special catch-up provision offered for employees over the age of 50.
Please visit North Carolina's Supplemental Retirement Plans website.
457 Deferred Compensation Plan
The supplemental 457 plan is a Deferred Compensation plan offered through Prudential with a wide fund lineup. Just like the 401k and 403b offerings, investors can contribute up to 80% of their salary not to exceed the specified contribution limit. The 457 plan also has a $18,000 contribution limit for 2016 and offers catch-up options for individuals over the age of 50. However unlike a 401k or 403b plan, there is no 10% penalty for withdrawal before the age of 59 1/2 (although the withdrawal is subject to ordinary income taxation).
403(b) Tax-Sheltered Annuity Plan
Participants have a variety of choices in the 403b retirement program. In addition to choosing from two companies that can administer their investment, participants have a variety of fund options from simple lifecycle funds all the way to self-directed brokerage options. Both approved vendors, TIAA-CREF and Fidelity, will work with the participant to find the option best suited for their risk tolerance and plans for retirement. Just like the 401k offerings, 403b investors can contribute up to 80% of their salary not to exceed the specified contribution limit. The maximum annual contribution limit will be $18,000 for 2016 with a special catch-up provision offered for employees over the age of 50. All employees who pay FICA tax as part of their payroll deduction are eligible to enroll in the 403b program.
Contribution Limits For 401K, 403B, and 457 Deferred Compensation
- 2016: Age 49 & Below - $18,000; Age 50+ - $24,000
- 2015: Age 49 & Below - $18,000; Age 50+ - $24,000