Human Resource Services
Salary Reduction Agreement Form Instructions
For ORP and Non-ORP Participants
Before contributing to a University of Florida 403(b) Tax-Deferred Annuity Plan, please read the summary plan documents provided by the company(ies) you have selected for more specific information on each investment plan. You also may want to consult a tax advisor before making a final decision to participate in voluntary contributions.
The Internal Revenue Code (IRC) limits the amount of your annual contribution and imposes penalties for over contributing. It is important to carefully monitor your individual and employer contributions, if applicable, throughout the year to ensure that you are within the limits established for the specific calendar year, as outlined below.
Generally, your maximum annual contribution cannot exceed IRC limits, as follows:
- 402(g) limit on elective deferrals:
Year Maximum Annual Contribution 2008 $15,500 2009 $16,500 - Section 415 Limit (Annual Addition Limit):
Optional Retirement Program (ORP) participants also must consider the annual Section 415 limit. The combined employer and employee total contribution cannot exceed $46,000 for 2008 and $49,000 for 2009. - Catch-up provisions where eligible:
- Under the “15-year rule IRC Section 402(g), an employee may exceed the annual limit on elective deferrals if he or she has 15 years of full-time equivalent service with the University of Florida and has met all other criteria. Contributions made under the 15-year rule have an annual limit of $3,000 per year and a lifetime maximum of $15,000. Please contact your investment provider for further information regarding this provision.
- The 50-or-older “catch-up rule” may apply if you will be age 50 or older during the calendar year. In this case, you may contribute additional amounts as follows:
Year Additional Annual Contribution 2008 $5,000 2009 $5,500
Enrollment
If you wish to initiate enrollment in ORP with elective deferrals, you will need to complete both ORP-16 and a 403(b) Salary Reduction Agreement for ORP Participants forms.
Change Plan
If you are already enrolled in ORP and you wish to make a change, you will need to submit an ORP-16A and 403(b) Salary Reduction Agreement for ORP Participants. Employees not enrolled in ORP who wish to make elective deferrals will need to complete a 403(b) Salary Reduction Agreement for Non-ORP Participants.
Contributions to the 403(b) plan may be stopped at any time. Elective contributions to the university’s 403(b) plans are available only from compensation paid through the university payroll system through payroll deductions.
All employees of the University of Florida receiving compensation may participate in the university’s tax-deferred annuity programs. Questions regarding your 403(b) Salary Reduction Agreement should be directed to University Retirement.