Retirement Savings Plan
New Plan Features coming January 2024!
Brandeis University is pleased to offer a new Roth 403(b) contribution source effective January 1, 2024. Roth 403(b) option offers the potential for tax-free retirement income.
Unlike a traditional pretax 403(b) the Roth 403(b) allows you to contribute after-tax dollar and then withdraw tax-free dollars from your account when you retire.*
Just as with a traditional pre-tax 403(b):
You elect how much of your salary you wish to contribute.
- Your contributions to a Roth 403(b) and traditional pretax 403(b) cannot exceed IRS limits.
- Your contribution is based on your eligible compensation.
- If eligible you may receive university matching contribution based on your Roth 403(b) election.
- Younger employees who have a longer retirement horizon and more time to accumulate tax-free earnings.
- Highly compensated individuals who aren’t eligible for Roth IRAs, but who want a pool of tax-free money to draw on in retirement.
- Employees who want to leave tax-free money to their heirs
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Taxes: Pay now or pay later |
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Traditional Pre-tax 403(b) |
Roth 403(b) |
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Employee contributions |
Pre-tax dollars |
After-tax dollars |
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Employee withdrawals |
Taxable upon withdrawal |
Tax free upon withdrawal* |
*In the event of either retirement or termination, your earnings can be withdrawn tax free as long as it has been five tax years since your first Roth 403(b) contribution and you are at least 59½ years old. In the event of death, beneficiaries may be able to receive distributions tax free if the deceased started making Roth contributions more than five tax years prior to the distribution. In the event of disability, your earnings can be withdrawn tax free if it has been five tax years from your first Roth 403(b) contribution.
Deferral election changes are made on Fidelity’s NetBenefits (User Guide, page 7) or by calling the Retirement Service Center at 800-343-0860.
We encourage you to consult with a tax professional, financial advisor or retirement specialist to optimize your retirement savings strategy. They can provide personalized guidance based on your individual circumstances and goals.
In preparation for the addition of the Roth 403(b) contribution, the current 403(b) Employee Basic contribution source and 403(b) Supplemental contribution source will be combined to one Pre-tax Employee Election source.
Your current deferral is listed separately, Employee Basic deferral and Employee Supplemental deferral.
At the end of December 2023, your deferral will be listed as Employee Supplemental with a January 1 effective date. There will be no change in your overall deferral amount. In addition, your balance from your Employee Basic source will be transferred to your Employee Supplemental/Voluntary source. Going forward the University matching contribution will be based off your mandatory contribution rate, Exempt employees at 5% and Non-Exempt employees at 3%.
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Source # |
Source Name |
To |
Source # |
Source Name |
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02 |
Employee Basic |
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03 |
Employee Supplemental/Voluntary |
403(b) Supplemental contributions:
- Pre-tax deferred deductions made in addition to the 403(b) Employee Basic
- Can be changed (increased, decreased or stopped) at any time
- Election changes become effective in the pay period elected
403(b) Employee Basic contributions:
- 3% or 5% pre-tax deferred deductions linked to the University Matching contribution
- Cannot be changed once elected while in a benefits eligible position
- Elections become effective the 1st of the following month
403(b) Pre-tax Employee contributions (prior name 403(b) Supplemental)
- Pre-tax employee deductions
- University matching contributions are based on your mandatory contribution rate, exempt (paid semi monthly) employees 5% and non-exempt (paid weekly) employees 3%.
- Can be changed (increased, decreased or stopped) at any time
- Election changes become effective in the pay period following election date
403(b) Employer Basic - University matching contribution
- 8% of your eligible compensation, plus 2% contribution on the July 1 following attainment of age 50 - (semi-monthly paid)
- 6% of your eligible compensation, plus 2% contribution on the July 1 following attainment of age 50 - (weekly paid)
Once this change is complete, the transfer of source balances will appear as a “Transfer Out” and “Transfer In” on your Fidelity quarterly statement and in your account transaction history online at www.NetBenefits.com/atwork.
If you have any questions, please contact Fidelity at 800-343-0860, Monday through Friday, between 8:30 a.m. and 8 p.m. Eastern Time.
403(b) elective deferral changes suspended midnight 12/15/2023 through 12/31/2023
To ensure that all information is transferred accurately from the current sources to new sources, there will be a brief period of time when you will be unable to change your 403(b) supplemental deferral election on NetBenefits.
The “blackout period” will begin at midnight Eastern time on December 15, 2003 and is expected to end on December 31, 2023. During this time your benefit under the 403(b) will continue to be credited with gains and losses based on your investment allocations on file and will not be out of the market.
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Automatic Enrollment
You will be automatically enrolled to make 403(b) Supplemental contributions in the retirement plan at a pretax rate of 5% if exempt, paid semi monthly or 3% nonexempt, paid weekly. Your contributions will be invested in the Target Date Fund that's closest to your anticipated retirement date (assuming retirement at age 65).
If you wish to waive your enrollment in the Plan, you must change your contribution rate to 0% within the first 30 calendar days from the date indicated on your automatic enrollment notification in the mail.
We encourage you to choose a contribution rate and investment options that are appropriate for you. You may change your elections at any time by logging in to your account with your username and password. See how to enroll instructions.
Website User Guides
Contribution Limits for 2023
- Employees 49 or younger: $22,500 for combined 403(b) Employee Basic and Employee Supplemental contributions.
- Employees 50 or older: $30,000 for combined 403(b) Employee Basic and Employee Supplemental contributions, the latter of which includes a maximum $7,500 "catch-up" contribution.
IRS contribution guidelines for 2023
Contribution Limits for 2024
- Employees 49 or younger: $23,000 for combined 403(b) Employee Basic and Employee Supplemental contributions.
- Employees 50 or older: $30,500 for combined 403(b) Employee Basic and Employee Supplemental contributions, the latter of which includes a maximum $7,500 "catch-up" contribution.
Important Reminders
- You must make a 403(b) Employee Basic contribution in order to receive a university matching contribution.
- Workday will not permit you to make contributions above the IRS maximum contribution limit
- Brandeis does not monitor individual's maximum contributions to your plan.
- You are responsible for monitoring your annual contribution amounts, which are reflected on your pay slip.
- You may seek assistance in determining your supplemental contribution amount from representatives at Fidelity (800-343-0860) or your tax advisor.
Meet With a Retirement Planner
To help you plan for your future, Retirement Planners from Fidelity Investments are on campus regularly to provide one-on-one guidance appointments. Consultations may be conducted in person virtually or over the phone.
To schedule your confidential consultation, please visit:
- Fidelity: www.fidelity.com/schedule or 800-642-7131
Work-Life Balance-Financial Well-Being
Visit the Financial Well-Being page for additional information.
Questions?
If you have additional questions about this service, contact Fidelity Investments at 800-343-0860 or online at www.netbenefits.com/brandeis.