FAU: Personnel Services - Benefits & Retirement

DON'T GAMBLE WITH YOUR FUTURE!

FAQ'S - 403b PLANS AND ANNUITIES
FOR EMPLOYEES ENROLLED IN THE
FLORIDA RETIREMENT SYSTEM

What is a 403b Plan or an annuity?

A 403-B is a tax code that gives you the ability to reduce your salary through payroll deduction, which reduces your tax liability to the federal government.

An annuity is a funding vehicle for a 403-B.

Are all of the companies' plans basically the same?

No.

How does this plan benefit me?

Employees should contact their tax advisor.

Are there limits to how much I can contribute?

Yes. See your tax advisor.

Does the University contribute a matching amount?

No.

Do these contributions in any way impact the State Retirement benefits?

How do I join up?

Contact Benefits and Retirement at 561-297-2061

Can I stop the contributions at anytime - either temporarily or permanently?

Yes

What happens to my money if I stop the contributions or quit before retirement age?

Nothing.

Can I continue to contribute after I quit?

I understand funds will be paid to my beneficiaries upon my death. Upon my death does it matter if I've retired, am still employed at FAU, or have quit FAU?

It does not matter whether you are retired, still employed or have quit FAU.

Upon my death, are the remaining funds paid immediately to my beneficiaries or will they be tied up in probate?

Contact your tax advisor.

Are funds paid to my beneficiaries taxable to them?

Contact your tax advisor.

What should my beneficiaries do in the case of my death in order to collect?

Contact your 403-B Provider.

Can I borrow against my contributions? Can they be used as collateral for a bank loan?

You may borrow against your contributions and use as collateral for a bank loan.

What if I disparately need the money before I retire - can I get it out?

Yes, contact your tax advisor.

Do the companies offer a choice of the way the money is invested - fixed, stock, bonds, etc?

Yes

Can I have more than one 403b plan?

Yes

How frequently can I make changes in my plan - change the amount of contribution or how it is invested?

Contact your 403-B Provider

Can past contributions be moved around either within a company's various funds or among companies?

Depends on the company

Can my pre-FAU IRA funds be moved to a 403b plan?

If I quit before retirement age, can these funds be moved into an IRA account?

Yes

Is my money safe in a 403b - are there any guarantees or is it insured?

See your 403-B provider.

RETIREMENT

At what age can I begin to collect from my 403b? At what age must I begin to collect?

See your tax advisor or your 403-B Provider.

Are 403-B payments taxable income?

Yes

Will 403-B payments impact the amount of Social Security I can collect?

What do I have to do to start collecting 403-B payments?

Contact Company Agent.

How is the money paid? Do I have any choice in the method and amount of 403-B payments?

You have choices on the method and amount of payment. Contact your 403-B Advisor.

If I do have a choice on the above, once payments start, can I make any changes in the payments?

It depends on the choice. See your 403-B advisor.

I understand that a "defined benefit retirement plan" pays me a monthly payment until I die - does a 403b do the same or is there a possibility I'll run out of money?

Yes, it does the same. See your 403-B Advisor.

How can I get an estimate of future benefit payments?

See your 403-B advisor.

Florida Retirement System - www.frs.state.fl.us/

If you have any questions, please contact Marie Mascaro at (561) 297-3074 or e-mail mmascaro@fau.edu.

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