The Internal Revenue Service Code 1954, as amended in Section 403(b) allows an employee to take advantage of certain tax advantages by excluding a portion of his/her gross salary to purchase an annuity for retirement purposes. The plan defers taxes on the income and the growth of the income until the monies are withdrawn from the program. Once the funds are withdrawn, the funds are treated as ordinary income and taxed at the current rate of the employee at that time. Contribution amounts have maximum limits based on age.
For information on enrollment, contact the Division of Human Resources.