Summer Eligibility to Contribute to the Bates College 403(b) Retirement Plan
During the summer time you are considered an employee that is eligible to contribute to the Bates College 403(b) Retirement Plan (the Plan). Once you return to an active student status in the fall you will cease to be eligible to contribute to the Plan and your contributions will automatically stop.
Why would I want to contribute?
Any contributions you make to the Plan will be invested and any earnings will grow tax-free until you withdraw them (note there are penalties for taking funds out before you reach age 59 1/2). Retirement may seem like a distant vision but that is the point, the earlier you begin to save the more your money will work for you over time.
What is the Bates College 403(b) Retirement Plan?
The Bates College 403(b) Retirement Plan is a 403(b) Tax Deferred Annuity plan, which provides employees with an additional opportunity to save for future financial security for retirement. All employees are eligible to participate in the Bates College 403(b) Retirement Plan; to participate employees must complete the appropriate on-line enrollment at www.tiaa.org/bates and sign and return a salary reduction agreement to Human Resources.
What happens if I contribute but do not create an account online?
If you fail to enroll online and make investment elections your contributions will be defaulted into the Lifecycle Fund that most closely matches your expected retirement date at age 65. Information on how to enroll, the Lifecycle Funds and the Qualified Default Investment Notice are available in Human Resources or found on our web-site at www.bates.edu/hr/benefits or at TIAA-CREF at the above internet address.
How do my contributions affect my taxes?
Because contributions to a 403(b) plan are automatically deducted from an employee’s pay before federal and state tax withholdings are calculated, the employee saves tax dollars now by having their current taxable income amount reduced. These contributions are not exempt from Social Security or Medicare Taxes. Employees can elect a percent of their earnings or a flat dollar amount. (election of a flat dollar amount must exceed 6% of eligible earnings – see salary reduction agreement for instructions). The amount that an employee may contribute to the Bates College Savings Plan is limited each year by law.