These plans reduce the employee's gross wages before federal and state taxes are computed. Theoretically, when these funds are withdrawn later in life, the employee is in a lower income tax bracket. Additional amounts not matched by the University can be payroll deducted. The appropriate company will compute the maximum amount that may be tax sheltered through payroll deduction. There are several investment options available, giving the investor a wide spectrum of opportunities ranging from fixed and variable annuities to mutual funds.
Detailed information is provided by the approved companies listed below.
The amount must be coordinated with any Tax Deferred Annuity contributions, health insurance deductions, preferred dental plan deductions, and flexible spending account plan deductions. The income deferred is not includable in the employee's taxable wages for federal or state income tax purposes. This plan ONLY allows employee contributions.