Tax Deferred Annuity Retirement Plan
Postdoctoral scholars, regardless of the percentage of their appointments, are eligible to contribute salary on a before-tax basis to the Stanford University Tax-Deferred Annuity (TDA) plan.
You are able to contribute to the TDA only from income that you receive from the University as salary, not as stipend. You may contribute any amount up to an annual limit $15,500 in 2008. Higher limits apply to participants who will be 50 years old or more before the end of a calendar year. If you are not sure if your income is salary, stipend, or a combination of the two, you should consult with your department administrator.
A TDA is a defined contribution retirement plan in which you elect to contribute a percentage of your salary on a before-tax basis and invest it in one or more of the available investment options. You may enroll in the TDA at any time.
You may change your payroll deduction election every pay period if you wish, but changes need to be made by the 10th or the 25th of the month in order to be effective with your next paycheck. The payroll system will not allow you to contribute beyond your annual limit, regardless of your election.
How a TDA works:
You must wait until you've received one salary paycheck before enrolling in the TDA via the Stanford Retirement Manager.
You elect to contribute
a percentage of your regular salary to the TDA on a before-tax basis.
Before-tax contributions are not treated as taxable income, so the
Federal and State withholding on your paycheck is reduced, as well
as the taxable income reported on your annual W-2.
You invest
your contributions among available investment options.
As
a participant, you accept all investment risk.
Contributions
and any investment earnings they produce are sheltered from taxes
until you take a distribution from the plan.
You may take
a loan from your TDA account balance, up to certain limits, while
you are a Stanford University Postdoctoral Scholar.
You may take a distribution
from your TDA account when your appointment at Stanford ends, or when
you reach age 59-1/2 even while still employed with Stanford. Generally,
lump sum distributions taken from retirement plans before age 59
and received directly by participants, as opposed to being rolled
over directly to another eligible retirement plan, are subject to
early withdrawal penalties.
Balances from certain other retirement
plans may also be transferred to the TDA if you wish to consolidate
any other accounts.
Review your paystub every pay period to confirm your elections are appropriately deducted.
How to enroll:
Step 1: Visit http://benefits.stanford.edu
Step 2: On the left-hand side, click on "retirement" then click on "Stanford retirement Manager"
Step 3: Follow the instructions to set up a personal account if you do not already have a Fidelity NetBenefits account.
Before enrolling,
you may wish to have in mind the percentage of your eligible salary
you will contribute and the investment options you will choose. You
may change these elections at any time. The web site has information
on deciding your contribution percentages, contribution limits, investment
options, and a link to an enrollment guide to assist you with your
enrollment. You may also call 1-888-793-8733 and a Fidelity Retirement
Services Specialist will help you enroll.
If you have any questions about the TDA Plan, please e-mail the Benefits department in the Office of Postdoctoral Affairs at :
Mona Hartmann |
Cecilia Avila |
*updated 4/11/08