Tax-Sheltered Annuity Programs (403b) for OPS Employees

Published: September 29th, 1999

Category: Memos

Joanne Dice, Assistant Director

In our continuing effort to promote and offer added benefits, we are pleased to announce that 403(b) programs are now available to all OPS employees and seek your assistance in sharing this news. Please direct adjunct faculty, teaching assistants, graduate assistants, interns, residents, or any other employees who may benefit from this program to our web site at for specific information. It may be most convenient for you to share this memo, which briefly outlines how 403(b) plans work and the benefits of participating.

The 403(b) tax-sheltered plans provide an excellent way for employees, through payroll reduction, to save money while reducing current taxes on contributions and earned interest. Employees may elect how the money is invested and with which company. They also have the flexibility to change the investment and the amount of reduction at any time.

The Internal Revenue Service (IRS) establishes the criteria for participation in 403(b) programs. Employees may contribute up to 20% of their gross salary up to $10,000, whichever is less. Employees are responsible for ensuring contributions do not exceed the maximum permitted by the IRS for the calendar year. If an employee has excess contributions for the calendar year, he or she will be responsible for requesting a refund of excess contributions from the 403(b) company and paying taxes on the money refunded. OPS employees, like all participating employees, need to closely monitor the amount of dollars set aside through the 403(b) tax-deferred programs to ensure that they are in compliance with IRS regulations.

Employees may choose to participate with any of the following ten companies approved for payroll reduction.

Fidelity Investments

Great American Reserve Company (GARCO)
(352) 372-1802

Lincoln Life
(352) 377-2078

Merrill Lynch
(352) 374-1037

Nationwide Best of America
(352) 373-1927 or (352) 375-7977

Prudential Life Insurance Company
(352) 376-3941

Smith Barney

Security First Group


(352) 372-3497

Employees may contact any of the companies listed above for information on their specific programs. Company representatives will be glad to explain the program and products they offer. University Retirement staff is also available at (352) 392-4941 to assist employees.

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