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As a full-time Mount employee, you are eligible to enroll in one of two available retirement programs: Teachers Insurance Annuity Association-College Retirement Equity Fund (TIAA-CREF) or Metropolitan Life (MetLife).
Either program is designed to give you an income when you retire which is in addition to your Social Security benefit. Tax advantages are an important reason why the Mount provides this Plan. You do not pay taxes on the money the College contributes to the Plan when it is deposited in your account. Also, you do not pay taxes on the earnings of your account as they build up. You will pay taxes only when you receive payments from the Plan. By that time, you are likely to be in a lower tax bracket.
This summary will help to answer some of the questions you may have about the Plan. Please read this summary carefully and talk it over with your family. If you have any questions, please feel free to contact the plan sponsors directly or stop in or contact the Human Resource Office.
Eligibility
You are eligible to join the Mount’s retirement plan if you are 21 years of age and are a full-time employee of the Mount. You may choose to contribute a fixed dollar amount or percentage of your salary into one of the two available retirement programs on a tax-deferred basis. While there is no minimum contribution required; the Internal Revenue Code enforces a maximum amount that can be tax-deferred by employees.
Regardless of whether or not you choose to contribute into the Plan, the Mount will contribute an amount equal to 5% of your salary into one of the two available retirement options on your behalf. The contribution begins on the first day of the month following your date of full-time employment.
Building your Portfolio
To start your retirement plan, you’ll need to allocate your contributions among the fixed and variable annuity accounts listed with both retirement options. You can change your allocation of future contributions at any time, and you have considerable flexibility in transferring funds among accounts.
How do I enroll?
Mount Contribution: The Human Resources Office will enroll all full-time employees upon orientation. The Mount’s contributions will begin on the first day of the month following employment.
Employee Contribution: an employee may choose to contribute any portion of their salary by completing a Salary Reduction Form. Additional forms may be required depending upon the choices made by the employee and are available in the Human Resources office.
How much can I contribute towards my retirement?
There is a contribution limit that applies to Tax Sheltered Annuities. In the calendar year 2004, your contribution is limited to a total amount of $14,000.
There are, however, special provisions to allow you to contribute more if:
- you are 50 years of age or older
- you have been employed at Mount Saint Mary’s for 15 years or longer
If you are 50 or older, you may increase the $14,000 maximum by $4,000 in 2004. And if you have been employed for more than 15 years, you can have a maximum contribution illustration done that may increase your $14,000 maximum by another $4,000 in 2005. (See the Human Resources Office for the details.)
It is important to remember that any contributions you make to the plan are on a pre-tax, before tax, basis and reduce your taxable income in the year contributed. Also, any earnings generated in your account grow on a tax-deferred basis.
More About the Retirement Options
TIAA-CREF
MetLife
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