Save Extra Money for Retirement

403(b) and 457 Savings Plans


Save extra money for retirement, on top of your primary retirement plan.

The 403(b) and 457 savings programs allow you to:

  1. Save up to $18,500 annually for retirement. If you are 50+ you may save an additional $6,000

  2. Get a cash match from UVA of up to 50%, to a monthly maximum of $40 (ex.: save $80 / month to receive a maximum $40 match)

  1. Save in both plans, and contribute the maximum to both

403(b) Plan

Find helpful information about the 403(b) plan. 

  • What you need to know

    • Contributions are pre-tax and Roth after-tax deferrals.
    • Vendors are Fidelity and/or TIAA.
    • Changes to your vendor and/or contribution amount will always take effect the next pay period.
    • Change your contribution amount at any time through UVA Employee Self-Service (UVA will not make retroactive changes to excess contributions or deductions).
    • In 2019, the savings limit increases from $18,500 to $19,000.
  • How to Enroll

    Due to UVA transitioning self-service to Workday, steps to enroll will change throughout December 2018 and January 2019. 

    Present - December 15, 2018:

    December 15, 2018 - Workday Launch:

    • The current benefit enrollment system will be unavailable after December 15, 2018. Academic and Medical Center employees can enroll or make changes to their 403b elections by using this 403b Salary Reduction Form.

    After completing the appropriate steps above:

    • Work with your vendor, TIAA and/or Fidelity, to make investment elections.
    • You will be placed into the default program if you don't make a specific fund choice.
  • Pre-tax 403(b) vs. After-tax Roth 403(b)

    Pre-tax

    • The traditional 403(b) is pre-tax, meaning you invest before you pay taxes on gross income.
    • When you withdraw the money during retirement, you will pay taxes at the current rate.

    Roth

    • Roth contributions are after-tax (pay taxes, then invest what remains).
    • When you withdraw money at retirement, you’ve paid your tax already.
    • You are not taxed later on all of Roth investment earnings beyond the up-front contributions (there may be exceptions).
    • Annual limits on contributions are the same, regardless of whether the contributions are pre-tax or after-tax; for instance, you can make all of your future 403(b) contributions—with Fidelity and/or TIAA—Roth contributions (after-tax).
  • ORP and Non-Hybrid VRS Participants

    • If you are newly hired or rehired, $40 / month of salary will automatically go to a default investment plan through the Fidelity 403(b) Plan—unless a you enroll in a different 403(b) or 457 plan within 60 days of hire.
    • Automatic enrollment triggers the monthly 50% UVA match of $20
    • You may decline to set aside $40 / month in retirement. By doing so, you give up the $20 / month match
  • Cash Match Requirements for VRS Hybrid Retirement Members

    Employees with VRS Hybrid Retirement Plans and a 403(b) plan get the UVA cash match only if they first put the full 4% optional voluntary contribution into their Hybrid Retirement Plan.

    The Value of Contributing More Money Over Time Graph

    The long-term advantage of saving up to 4% of your income in a deferred savings plan

  • Cash Match Requirements for Medical Center Team Members

    • If you are enrolled in the Medical Center Retirement Plan (MCRP) and hired prior to September 30, 2002, your employee contribution of $80 earns the maximum UVA cash match of $40.

      Employees with VRS and ORP plans earn the same match.

    • If you are enrolled in the MCRP and hired on or after September 30, 2002, saving 4% of salary gets the maximum UVA cash match of 2%; UVA matches half of your employee contributions.

      Employees may choose to save less than 4% of their salary, and UVA will still match half of what is saved.

Commonwealth 457 Plan

Get more info about the Commonwealth 457 Plan. 

  • What you need to know

    • Contributions are pre-tax and Roth after-tax deferrals.
    • Vendor is ICMA-RC, a retirement service for public sector employers and employees.
    • A one-time deferral option is available, by paper submission only.
    • You can change your 457 contribution amount through your ICMA-RC online account or by phone at 877.327.5261 (UVA will not make retroactive changes to excess contributions or deductions).
    • In 2019, the savings limit increases from $18,500 to $19,000.
  • Cash match requirements for Medical Center Team members

    • If you are enrolled in the Medical Center Retirement Plan (MCRP) and hired prior to September 30, 2002, your employee contribution of $80 earns the maximum UVA cash match of $40.

      Employees with VRS and ORP plans earn the same match.

    • If you are enrolled in the MCRP and hired on or after September 30, 2002, saving 4% of salary gets the maximum UVA cash match of 2%; UVA matches half of your employee contributions.

      Employees may choose to save less than 4% of their salary, and UVA will still match half of what is saved.

  • How to Enroll

    • Enroll online through ICMA-RC and create a user ID and password.
    • Make your investment decisions online at ICMA-RC Plan’s Investment Elections.
    • Call ICMA-RC at 877.327.5261 to enroll and to discuss investment choices on the Plan Information Line (UVA will not make retroactive changes to excess contributions or deductions).

Retirement Distribution Strategies

Changing employers? Retirement on the horizon? Understand the various distribution requirements and options under your 457 and 401(a) plans.

Universal Availability Notice

UVA (the Plan Sponsor) provides the opportunity to save for retirement through the UVA Supplemental 403(b) Plan. Your employer would like you to know more about how you can participate.

  • Eligibility

    All UVA employees who receive compensation reportable on an IRS W-2 form are eligible, as long as they contribute at least $200 per year.

    Please take a moment to review the 403(b) program before enrolling. 

  • How to Enroll

    • You may enroll as soon as you are hired. 
    • Contact Fidelity and TIAA, the two approved financial services companies, about plan investment options and services. They offer a wide range of mutual fund investment options and annuity products through their own funds and other investment managers in the industry, as well as resources and tools to help participants plan their investment strategy. 
    • Once you are enrolled, you can review and change your contribution and investment allocation amounts at any time.
    • The exact date your investment allocations will take effect may vary depending on the policies of the financial service firm providing the investment options you chose for plan contributions.
  • Decisions About Contributions

    You may choose to defer a portion of your compensation on a pre-tax or post-tax (Roth) basis.

    • Pre-tax contributions: Both federal and state income taxes are deferred on any contributions and earnings until a distribution is made from the plan. Distributions are taxed as ordinary income for federal and state income tax purposes. Generally, you must begin receiving a distribution no later than April 1 following the year you reach age 70½ or retire (whichever is later). 

    • Post-tax (Roth) contributions: Interest and earnings on these contributions when withdrawn are generally tax-free. If you retire or terminate employment, you can withdraw earnings tax-free as long as it has been five tax years since the first Roth 403(b) contribution and you are at least 59½ years old.

    The law limits the amount you may defer.

    • For 2018, the limit under all plans of this type is generally $18,500 (larger limits may apply if you are age 50 or over). In 2019, the savings limit increases from $18,500 to $19,00.
    • Each participant only gets one limit for contributions to all 403(b) plans, so if you are also a participant in another employer’s 403(b) plan, your combined contributions to that plan and to the UVA plan in 2018 are generally limited to $18,500.
      • If you do participate in more than one 403(b) plan, you are responsible for tracking and reporting the amount of all of your contributions to all plans so that the total amount does not exceed the limit.
      • The sum of all of your and your employers’ contributions to your 403(b) plan(s) are generally limited to $55,000 or 100% of your compensation in 2018 (whichever is less).