HR Policies: 6.8.5
Tax Deferred Plan
Subject: Providing Benefits
Number: 6.8.5
Issued: 3/1/82
Revised: 6/30/98
Purpose
This plan is designed to provide eligible employees with the opportunity
to save for retirement by making contributions on a tax-deferred
basis. Taxes are deferred on both the employee contributions and
investment earnings until retirement income begins or the savings
are withdrawn.
Providers
The plan offers a variety of investment options through insurance
and mutual funds.
Eligibility
All regular university employees may participate through a type
of payroll deduction known as salary reduction.
University Contribution
There is no employer contribution to this plan. The university contributes
to the Cornell University Retirement Plan for Endowed Employees (CURP)
described in Policy
6.8.3, Cornell University Retirement Plan for Endowed Employees (CURP).
Employee Contribution
Employee contributions are designated as a percentage of salary
which will be reflected in each paycheck. The amount must comply
with limitations established by the Internal Revenue Code Sections
403(b), 402(g) and 415. Contributions are deducted from the employee's
gross salary. State and federal taxes are then calculated on the
reduced salary amount, thereby reducing the employee's taxable income
(salary reduction).
Salary Reduction Calculations
University benefits administrators can provide illustrations of
the maximum amount contributed (maximum exclusion allowance calculation).
Employees should contact the Benefit
Services section of the Office of Human Resources for this service.
Employees are encouraged to discuss this and other benefit issues
with a benefits counselor.
Procedure
Employees who wish to participate must complete the required application,
allocation form and salary reduction agreement. These forms are
available to employees through Benefit Services.
Disclaimer
While every attempt has been made to ensure the accuracy of the
above statements, the legal documents, policies, or certificates
pertaining to this benefit prevail in the event of any discrepancy.
Contact the local hr representative or designee, or Benefit Services (607) 255-3936 in the Office of Human Resources for more information