Thus, the employee receives a current tax advantage. Income taxes are paid at the time funds are withdrawn or at annuitization. There are approximately 100 eligible insurance and investment companies participating in the program. The account is established in the employee's name as an individual account. Please contact your tax advisor to determine your own personal exclusion amount.
All employees are eligible to participate regardless of timebase.
Once the employee has selected a company, the employee must complete an individual company application as well as a Salary Reduction Agreement. The completed Salary Reduction Agreements must be received in the Human Resources Department by the first of the month in which the plan is to be effective. Investment Space has been included on the agreement for two company names, payroll deduction codes and monthly investment amounts for each company. An employee may contribute simultaneously to a maximum of two companies at any given time. The Salary Reduction Agreement contains the California State University administrative regulations and requirements.