University of Tennessee 403(b) Plan Overview
Below are the important features about the Plan. This website is intended to be a summary of the plan provisions. In the event that a conflict exists between the information contained within this website and the plan document, the plan document provisions prevail. For more information, please contact your local representative.
The contributions are made on a pre-tax basis. Contributions made from your wages "reduce" your salary by the amount of your contribution, and you are not taxed on those contributions or the earnings until the money is distributed. Contributions are invested according to your investment selection. Please note that distributions will be taxed as ordinary income when distributed and are subject to any applicable tax penalties.
Under the Plan, the maximum annual contribution amount is set by Internal Revenue Service (IRS) guidelines on a yearly basis. You may view the current limits here.
The Plan permits you to move existing Plan assets with prior investment providers to Voya®.
Consider your personal financial situation; compare your options for differences in cost, benefits, charges and other important features, before you exchange assets.*
The Plan permits you to rollover amounts from a 401(a)/(k), 403(b) or governmental 457(b) plan or a traditional IRA.
Consider your personal financial situation; compare your options for differences in cost, benefits, charges and other important features, before you rollover assets.*
Please note: Any rollover amounts from a 401(a)/(k) plan; a 403(b); or a traditional IRA will remain subject to the 10% early withdrawal tax penalty when rolled into a governmental 457(b) plan.
Loans are not available in the Plan.
403(b) plans are intended to be long-term investment vehicles. In general, contributions made to the Plan may only be withdrawn due to:
- Attainment of age 59½ (withdrawals prior to age 59½ may be subject to an IRS 10% premature distribution penalty tax);
- Severance from employment;
- Your death or disability;
- Financial hardship.
A 403(b) plan may also include provisions allowing for additional access to funds in your account. Funds may be withdrawn by an alternate payee under a qualified domestic relations order once your account is divided in accordance with a court order.
For 403(b)(1) fixed or variable annuities, employee deferrals (including earnings) may generally be distributed only upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals made after 12/31/88. Exceptions to the distribution rules: No Internal Revenue Code withdrawal restrictions apply to '88 cash value (employee deferrals (including earnings) as of 12/31/88) and employer contributions (including earnings). However, employer contributions made to an annuity contract issued after December 31, 2008 may not be paid or made available before a distributable event occurs. Such amounts may be distributed to a participant or if applicable, the beneficiary: upon the participant's severance from employment or upon the occurrence of an event, such as after a fixed number of years, the attainment of a stated age, or disability. For 403(b)(7) custodial accounts, Employee deferrals and employer contributions (including earnings) may only be distributed upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: hardship withdrawals are limited to: employee deferrals and '88 cash value (earnings on employee deferrals and employer contributions (including earnings) as of 12/31/88).
Payment Options at Separation of Service
- Distribution over your lifetime;
- Distribution over your lifetime and the lifetime of your designated beneficiary;
- Distribution over a set time period not extending beyond your life expectancy;
- Distribution over a set time period not extending beyond the joint and last survivor life expectancy of both you and your designated beneficiary;
- Lump sum or partial lump sum distribution in combination with one of the other options.
*Neither Voya® nor its affiliated companies or representatives provide tax or legal advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.
Not FDIC/NCUA/NCUSIF Insured I Not a Deposit of a Bank/Credit Union I May Lose Value I Not Bank/Credit Union Guaranteed I Not Insured by Any Federal Government Agency
Insurance products issued by Voya Retirement Insurance and Annuity Company, One Orange Way, Windsor, CT 06095-4774. Securities are distributed by Voya Financial Partners, LLC (member SIPC). Custodial account agreements or trust agreements are provided by Voya Institutional Trust Company. Insurance obligations are the responsibility of each individual company. All companies are members of the Voya® family of companies. Securities may also be through other broker-dealers with which Voya has selling agreements. Product and services may not be available in all states.