The following important updates apply to the 403(b) and Deferred Comp (457) plans for University employees. This notice is informational only, and no action is required at this time.
Deferred Comp (457) Plan to offer Roth option in 2016
Beginning January 1, 2016, a new Roth (after-tax) option will be available in the State of Illinois Deferred Compensation (Deferred Comp) 457 Plan.
Deferred Comp is an optional retirement savings plan offered to University employees. The Roth option gives you the opportunity to make after-tax contributions to your plan account. Roth contributions are taxed when you are paid, and are included in current taxable income. Roth contributions and any associated earnings can be withdrawn tax-free, if part of a qualified distribution. Qualified distributions are those made at least five years after the first Roth contribution, and upon one of the following events:
- Participant attains age 59 ½
- Participant’s death
- Participant becomes totally disabled
If you would like to enroll in the Deferred Comp plan, you will need to complete an Enrollment Form and fax or hand-deliver it to University Payroll and Benefits (UPB). For assistance with the form, see the How To Enroll page in NESSIE, or contact UPB.
Please note: The University 403(b) plan also offers a Roth option.
Contribution Limits remain the same for 2016
The 2016 contribution limit remains $18,000 ($24,000 if you are age 50 or over) for both the Deferred Comp (457) and the University 403(b) plan. You may contribute both traditional (pre-tax) and Roth (after-tax) at the same time, but your combined contributions cannot exceed the limit for each plan. You may contribute to these plans simultaneously and you may be eligible to make additional contributions in some cases. See the Supplemental Retirement Plan Comparison Chart for more information.
Information and Questions
For more information, please see the Retirement & Investment Plans page in NESSIE. If you need assistance completing forms or have further questions, contact UPB:
Please do not send forms or documentation that include your Social Security Number as email attachments. Send these via fax or hand-deliver them to UPB.
- Fax Number: 217-244-3135
- Email: benefits@uillinois.edu
- Urbana: 217-333-3111
- Chicago: 312-996-6471
- Springfield: 217-206-7144 or 217-206-7211
