Tax-Deferred Compensation/Annuity Plans 457(b) & 403(b)
As an employee of the University of Massachusetts, you have two valuable retirement investment options available to you: the University of Massachusetts 403(b) Elective Deferral Savings Plan, which Fidelity serves as the third party administrator and record-keeper, or the Commonwealth of Massachusetts 457(b) Deferred Compensation Plan (SMART Plan), which Empower Retirement (formerly Great West) serves as the third-party administrator and record-keeper. These options make it easy to save and invest more for retirement with special tax advantages and the convenience of regular payroll deductions.
Save and Invest More for Retirement, Pay Less in Taxes
Since your 403(b)/457(b) contributions are deducted from your gross income before tax, your contributions allow you to reduce your federal and state income taxes. For example, a pretax contribution of $10 per biweekly paycheck actually costs only $8 out of your net pay (if your combined federal and state tax rate is 20%). Saving and investing even small amounts from each paycheck now, can make a big difference in the amount you could have to work with when you retire. The sooner you begin saving and investing, the sooner any earnings on your money will grow tax deferred.
For 2018, if you are under age 50, your 403(b) plan and/or 457(b) elective deferral limit is $18,500. If you are age 50 or older, your 403(b) plan and/or 457(b) elective deferral limit is $24,500. University employees may contribute up to the maximums for both the university's 403(b) Plan and the 457(b) SMART Plan.
Please click here for a brief comparison of 403(b) and 457(b) plans.
UMass 403(b) Elective Deferral Savings Plan
To start or change a biweekly contribution amount with the University of Massachusetts 403(b) Elective Deferral Savings Plan:
You will need to register with your full name, date of birth and the last 4 digits of your Social Security Number at www.netbenefits.com/umass. If required, the university’s Plan number is 50266. Once registered you will be able to start biweekly payroll deductions and choose an investment lineup. You may also contact your local Fidelity representative, Michael Fraser, at 603.305.5590 or firstname.lastname@example.org, for a one-on-one appointment and consultation.
Commonwealth of Massachusetts 457(b) Deferred Compensation Plan (SMART Plan)
The SMART Plan allows for voluntary pretax contributions through payroll deduction. Employees may enroll at any time.
Empower, on behalf of the Commonwealth of Massachusetts, serves as the third-party administrator and record-keeper for the SMART Plan. Visit the SMART Plan or call 877.457.1900 for more information.
To start or change a biweekly contribution amount:
Visit www.mass-smart.com or call 877.457.1900 for more information on the 457(b) SMART Plan. You may also contact your local SMART Plan representative, Rich Carty, at email@example.com, or his direct line, 339.788.4621.
For more information, go to https://www.umassp.edu/employee-center/elective-deferral-retirement-plans.