Tax-Sheltered Annuity Plan

Below are the important features about your plan. This website is intended to be a summary of the plan provisions. In the event that a conflict exists between the information contained within this website and the plan document, the plan document provisions prevail. For more information, please contact your local representative.

In addition to participating in the Teacher Retirement System or the Optional Retirement Program, you can systematically save pretax dollars by contributing to the Tax-Sheltered Annuity (TSA) 403(b) program, a voluntary supplemental retirement savings plan authorized under Section 403(b) of the Internal Revenue Code. With this program, you can: 

  • Defer additional income for retirement through pre-tax contributions. 
  • Reduce your taxable income by making pre-tax contributions from your paycheck to invest in variable annuities. 
  • Have any earnings on your investments grow tax-deferred until you withdraw the money from your account; presumably at retirement when income tax rates are generally lower.

Please note: Distributions will be taxed as ordinary income when distributed and are subject to any tax penalties that may apply. This program does not include an employer contribution.

Contributions

Your employer will forward your contributions to Voya for investment in your choice of options. You will receive a quarterly account statement, which will summarize your account's financial activity.

Under the Plan, the maximum annual contribution amount is set by Internal Revenue Service (IRS) guidelines on a yearly basis. You may view the current limits here. Your local representative can help you calculate your maximum deferral amount.

Withdrawals

Employee deferrals and employer contributions (including earnings) to the Texas Tech TSA 403(b)(7) Custodial Account Program may only be withdrawn under one or more of the following circumstances: 

  • Severance from employment 
  • Attainment of age 59 ½ 
  • Your death or disability, or 
  • Financial hardship. 

Note: Financial hardship withdrawals are limited to: 

  • Employee Deferrals; and 
  • Earnings on any employee deferrals and employer contributions (including earnings) as of 12/31/88

For the Texas Tech TSA 403(b)(7) Custodial Account Program, an IRS 10% premature distribution penalty tax may be assessed on withdrawals unless you: 

  • Are age 59 ½; 
  • Become disabled or die; 
  • Separate from service in the same year or later than the year in which you reach age 55;
  • Receive the funds under a settlement option payable over your lifetime or the lifetimes of you and your beneficiary; 
  • Use the funds to pay sizable medical bills not covered by insurance; 
  • Use the funds to pay a federal tax levy; 
  • Make payments made under a qualified domestic relations order; or 
  • Exchange the funds for another 403(b) account or rollover the funds into an IRA. 

Please note: Under the IRS 403(b) regulations effective January 1, 2009, all withdrawal, loan or contract exchange requests must be approved by your 403(b) plan sponsor (generally the employer providing your 403(b) plan) or their designee before we can process your transaction.

Distribution Options

Under the Texas Tech TSA 403(b)(7) Custodial Account Program, there are no systematic payouts, guaranteed lifetime or guaranteed specified period payment options available. When you retire, you may:

  • Request a full or partial withdrawal (may be subject to federal withholding and possible tax penalties). 
  • Utilize the funds to purchase a single premium immediate annuity. 
  • Rollover to an IRA or another eligible retirement plan. 

Voya does not offer tax advice. Please consult a tax advisor or attorney before making a tax-related investment/insurance decision.

You should consider the investment objectives, risks, and charges and expenses of the variable product and its underlying fund options; or mutual funds offered through a retirement plan, carefully before investing. The prospectuses/prospectus summaries/information booklets contain this and other information, which can be obtained by contacting your local representative. Please read the information carefully before investing. 

Variable annuities and mutual funds under a retirement plan are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 59 ½, an IRS 10% premature distribution penalty tax will apply, unless an IRS exception applies. Money taken from the plan will be taxed as ordinary income in the year the money is distributed. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than its original amount invested. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you. 

For 403(b)(1) fixed or variable annuities, employee deferrals (including earnings) may generally be distributed only upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals made after 12/31/88. Exceptions to the distribution rules: No Internal Revenue Code withdrawal restrictions apply to ’88 cash value (employee deferrals (including earnings) as of 12/31/88) and employer contributions (including earnings). However, employer contributions made to an annuity contract issued after December 31, 2008 may not be paid or made available before a distributable event occurs. Such amounts may be distributed to a participant or if applicable, the beneficiary: upon the participant's severance from employment or upon the occurrence of an event, such as after a fixed number of years, the attainment of a stated age, or disability. For 403(b)(7) custodial accounts, Employee deferrals and employer contributions (including earnings) may only be distributed upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: hardship withdrawals are limited to: employee deferrals and ’88 cash value (earnings on employee deferrals and employer contributions (including earnings) as of 12/31/88).