Supplemental Plans

(403(b) Pre-Tax, 403(b) Roth After-Tax, 457(b) Pre-Tax and 457(b) Roth After-Tax)

Northern Illinois University offers four supplemental retirement plan options. Northern Illinois University sponsors a 403(b) Pre-Tax and 403(b) Roth After-Tax option in accordance with the Internal Revenue Code Section 403(b) . The State of Illinois Central Management Services sponsors the State of Illinois 457(b) Deferred Compensation Plan with pre-tax and after-tax Roth options.

Your contributions to the 403(b) and 457(b) tax-deferred Plans are made on a pre-tax basis and are not reported on your W-2 statement, which will reduce your taxable income for the year. That means your current taxable income is reduced. A qualified distribution can be obtained at age 59 1/2 and is taxable at the time of the distribution.

Tax deferral” means you pay no income taxes on the money your account earns until you receive a qualified distribution from the NIU Supplemental Retirement Plan.

Your contributions to the 403(b) NIU Supplemental Retirement Roth Plan or the 457(b) Deferred Compensation Plan (Roth option) are made on an after-tax basis are included in your current taxable income. Earnings are tax free if they are part of a “qualified distribution”.  A qualified distribution can be obtained after age 59 1/2 and can be taken at least 5 years from the year of the first Roth 403(b) contribution.

403(b) Roth” means contributions are made on an after-tax basis and are included in your current income.

You may contribute to both the 403(b) and or 457(b) Tax Deferred and the 403(b) and or 457(b) Roth after-tax Plan within the IRS calendar year contribution limit.

Eligibility

As an employee of Northern Illinois University receiving compensation reportable on a W-2, you are eligible to voluntarily elect to invest a portion of your compensation to the Plan to supplement your retirement savings. Employees may enroll in the NIU Supplemental Retirement 403(b) Tax-Deferred or after-tax Roth Plan at any time.

403(b) Special Features:

  • Administered by the university
  • Two (2) approved vendors
  • Pre-tax and Roth after-tax contributions
  • Minimum contribution amount is $10.00 per pay period
  • Contributions are taken via payroll deduction
  • Contributions can be a percentage or a flat dollar amount
  • Legal ownership of the account belongs to the employee

457(b) Special Features:

  • Administered by the State of Illinois/Central Management Service (CMS)
  • Pre-tax and Roth after-tax contributions
  • Contributions are taken via payroll deduction
  • Contributions flat dollar amount only
  • Minimum contribution amount is $10.00 per pay period
  • Exempt from ten percent federal penalty under section 72(t) of the IRS Code for eligible withdrawals made prior to age 59 ½.

The university itself and its employees are not authorized to offer investment advice. The university advises employees to contact a Certified Financial Advisor for professional financial advice. Approved vendor representatives may also offer advice on employee accounts.

The IRS calendar year contribution limit for both contribution plans together for 2018 is:

  • Pre-Tax and Roth Limit: $18,500 / year
  • Over age 50 catch-up Limit: $6,000 / year

Steps to begin participation in a 403(b) and/or a 457(b) plan:

403(b) Tax-Deferred and Roth:

457(b)

  • 403(b) An employee can change their current contribution amount in their 403(b) at any time during the calendar year. The employee must complete a NIU Salary Agreement form and send it to Human Resource Services.
  • 457(b) The employee must complete the CMS State Employees' Deferred Compensation Plan Change Form and send to Human Resource Services for processing with CMS. The form must be received in Human Resource Services the month before the month in which the change is to be made.

Campus Visits

Northern Illinois University sponsors the Northern Illinois University Supplemental Retirement Plan – Internal Revenue Code Section 403(b) (“Plan”). As an employee of Northern Illinois University receiving compensation reportable on a W-2, you are eligible to voluntarily elect to invest a portion of your compensation to the Plan to supplement your retirement savings. The Plan allows employees to make tax-deferred (pre-tax) and/or Roth option (after-tax) 403(b) investment contributions.

The approved Vendor(s) in the Plan will be coming to campus to provide individual financial counseling. Whether you are currently enrolled in the Plan or seeking additional information for future enrollment, each vendor listed below has provided a link to their company information and the dates of their future campus visits for those who would like individual financial counseling.

Fidelity Investments

Agents

  • Bob Intoccia
  • Hayden Lackey

Campus Visit Dates

  • August 15, 2018 – HSC Room 304
  • September 13, 2018 - HSC Room 304
  • September 27, 2018 - HSC Room 304

Appointments

Additional Information

TIAA

Agents

  • Patrick Windle
  • Jennifer McClure

Campus Visit Dates

  • September 20, 2018 - HSC Room 304

Appointments

Additional Information

Need more information?

Call the HRS Service Center at 815-753-6000 and ask to be connected to one of our HR associates.


Approved 403(b) Vendors

Fidelity Investments (www.fidelity.com)

Bob Intoccia, Director, Retirement Planner
(630) 360-5979
bob.intoccia@fmr.com 

Hayden Lackey, Retirement Planner
(405) 394-9525
hayden.lackey@fmr.com

TIAA (www.tiaa.org)

Patrick Windle, Financial Consultant
(312) 345-5666
PWindle@tiaa.org

Jennifer Mcclure, Financial Consultant
(630) 480-8304
jennifer.mcclure@tiaa.org

Approved 457(b) Vendors

State of Illinois,
Central Management Services
Deferred Compensation Office

(217) 782-7006
https://www2.illinois.gov/
cms/benefits/Deferred/Pages/
DeferredCompensation.aspx
 

T. Rowe Price
(Retirement Plan Service Provider)
(888) 457-5770
www.rps.troweprice.com