With the end of the year quickly approaching, employees have limited time to maximize 2009 tax-free contributions into voluntary retirement plans.
WSU offers two voluntary retirement savings plans for which all employees are eligible:
The Voluntary Investment Program (VIP), a 403(b) offered through TIAA-CREF, and
The Deferred Compensation Program (DCP), a 457(b) offered through the state Department of Retirement Systems (DRS).
If you’re an employee, you would need to submit changes to your plan no later than Nov. 15 or 30 to impact one or both of the remaining 2009 pay periods. Changes to these plans can only occur with future earnings, not current earnings. Therefore:
Changes received by Nov. 15 will go into effect with Nov. 16 earnings and be reflected on the Dec. 10 and 23 paychecks.
Changes received Nov. 16-30 will go in effect with Dec. 1 earnings and be reflected on the Dec. 23 paycheck.
Any requests received Dec. 1 or later will not impact the 2009 tax year but will be reflected on 2010 earnings.
In both plans, the minimum contribution is $15 per pay period ($30 per month) and the maximum amount that can be contributed for 2009 is $16,500. You can contribute $22,000 if you are over age 50.
The plans have different IRS codes; therefore, employees can participate in both plans at the same time and contribute up to the maximum in both.
To increase or start a VIP plan, complete a “Salary Reduction Agreement,” available at Human Resource Services (HRS) or online at www.hrs.wsu.edu/utils/file.aspx?fileid=1109. Mail the completed form to HRS, P.O. Box 641014, Pullman, WA 99164-1014, or send through intercampus mail using campus zip 1014.
If you are a new participant, you also will need to create an account with TIAA-CREF. For online enrollment instructions, go to www.hrs.wsu.edu/utils/File.aspx?fileid=2223 and follow the step-by-step prompts.
To increase or start a DCP plan, complete the enrollment form in the DCP packet available at HRS or online at www.drs.wa.gov/dcp. Mail the completed form directly to DRS for processing.
Questions regarding either of the voluntary retirement plans may be directed to HRS at 335-4521 or hrs@wsu.edu. Please also visit www.hrs.wsu.edu/Voluntary Investment Plans for more information.
