How will you pay for expenses when you stop working? The employer-funded defined contribution plan 401(a) helps you save now for future living expenses. It’s an important way to help with future financial health!
Here’s how it works:
- The University contributes an amount equal to 10% of your salary up to the Social Security wage base ($117,00 in 2014), and an amount equal to 12% above the Social Security wage base up to an annual maximum ($260,000 in 2014).
- You choose how to invest your money. If you do not make a selection, the default investment option is the LifeCycle Fund closest to the year you turn age 65.
- Your account grows tax-free through the University’s contribution and becomes taxable at distribution. It can also grow through returns on the investments you choose.
- You are vested after three years of service with USF, meaning that the money is yours. Previous vesting status or years of service at a non-profit organization or higher education institution may be credited toward USF’s vesting requirement.
Take the time to establish and monitor your financial goals at least annually by scheduling an appointment with a TIAA-CREF representative. Here’s how: