5: Voluntary Benefits

New Roth 403(b) option available: Roth contribution option

University of Massachusetts 403(b) Elective Deferral Savings Plan

As an employee of the University of Massachusetts, you have valuable retirement investment options available to you, one of which, the University of Massachusetts 403(b) Elective Deferral Savings Plan makes it easy to save and invest more for retirement with special tax advantages and the convenience of regular payroll deductions.

By saving just a little more from each paycheck now, you can make a big difference in the amount you could have to work with when you retire. Your participation in the University of Massachusetts 403(b) Elective Deferral Savings Plan is a significant step toward helping you prepare for your retirement goals. For 2018, if you are under age 50, your 403(b) plan elective deferral limit is $18,500. If you are age 50 or older, your 403(b) plan elective deferral limit is $24,500.

Pay Less in Taxes While Saving for Retirement: Traditional 403(b) contributions are deducted from your gross income before tax, meaning your contributions allow you to reduce your federal and state income taxes. For example, a pretax contribution of $10 per biweekly paycheck actually translates to only an $8 deduction from your net pay (if your combined federal and state tax rate is 20%).

Realize Your Tax Savings Later (New Plan Feature): Roth 403(b) contributions are now available! With the Roth 403(b) contribution option, your contributions are deducted from your pay after income taxes are taken out, meaning you do not receive an immediate tax break. As with traditional contributions, earnings grow tax deferred. Since you already paid tax on Roth contributions, you will not owe tax when you withdraw them. If your withdrawals of earnings are qualified (typically if it has been five years since your first Roth contribution and you are over the age of 59 ½), those distributions are completely tax free also.

As of April 1, 2016, the University has moved to a new record keeping model and plan design that includes a much smaller investment lineup, which will be carefully reviewed and monitored in terms of fees and performance. The new plan structure also includes a self-directed brokerage window, which will allow access to a larger selection of investment options that will not be under the direct oversight of the plan. The benefits of these new enhancements include: a streamlined, efficient investment lineup comprised of high quality and competitively priced funds; enhanced participant services; reduced overall administrative/participant costs; significantly improved employee communication, education and assistance.

To start or change a biweekly contribution amount:
First time users, you will need to register with your full name, date of birth and the last 4 digits of your social security number.  If required, the University’s Plan number is 50266.  Once registered you will be able to start biweekly payroll deductions and choose an investment lineup.

If you are already participating in the plan and would like to make a change to your biweekly contribution amount, please visit www.netbenefits.com/umass.

If you need assistance with the NetBenefits system, see the User Guide.

For one time deferrals of sick and vacation time:

One-Time Payout Deferral Form

For more information about the University's 403(b) Retirement Plan, visit these links:

• Summary of Key Provisions
• Frequently Asked Questions
• Learn
• Plans and Investments
• Tools and Resources

Commonwealth of Massachusetts 457 Deferred Compensation Plan (SMART Plan)

Massachusetts Deferred Compensation SMART PLAN is a retirement savings, 457(b), deferred compensation plan. The plan allows employees to save and invest before tax dollar through salary deferrals. Empower Retirement (formerly Great West), on behalf of the Commonwealth of Massachusetts, serves as the third-party administrator and record-keeper for the SMART Plan. University employees may contribute up to the maximums for both the University's 403(b) Plan and the SMART Plan. Please click here for a brief comparison of 457(b) and 403(b) plans.

For one time deferrals of sick and vacation time:

Paycheck Contribution Form

Visit www.mass-smart.com or call 877-457-1900 for more information on the SMART Plan. You may also contact your local SMART Plan representative below for more information.

For additional information you may also contact the University's System Treasurer's Office  at (774) 455-7586.

Contribution Limits

2018 Contribution Limits for the 403(b) Plan and the 457(b) SMART Plan