403(b) plan
Plan details
Welcome to your 403(b) retirement plan. Click below to view the features and highlights of your employer’s retirement plan.
The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.
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Employee contributions
All employees of the Law School are eligible to participate in elective deferrals on his or her date of hire, provided a salary reduction agreement has been received by the Plan Administrator prior to the start of the payroll period, with the exception of the following individuals:
Nonresident aliens who have no earned income from sources in the United States
Employees who normally work less than 20 hours per week (including adjunct faculty)
Employees who are enrolled as students and regularly attending classes offered by the Law School
- Leased employees
Employer contributions
Eligible employees participate in the plan for purposes of the Law School contribution on the first day of the first full month of employment except the following individuals:
Nonresident aliens who have no earned income from sources in the United States
Employees who normally work less than 20 hours per week (including adjunct faculty)
Employees who are enrolled as students and regularly attending classes offered by the Law School
Leased employees
Starting early has its advantages
Employee contributions
Your 403(b) plan allows you to make pretax contributions up to the maximum allowed by the Internal Revenue Code.
Catch-up contributions
You might be eligible to contribute additional catch-up contributions if you meet the following conditions:
Employer contributions
In addition to depositing your elective deferrals, the Law School may contribute nonelective contributions. A nonelective contribution is a contribution that is unrelated to whether you make any elective deferrals in the year. The Law School will make the following nonelective contribution:
- If you were hired on or before June 30, 1993, the Law School’s nonelective contribution is 11% of your compensation for the year
- If you were hired on or after July 1, 1993, the Law School’s nonelective contribution is 9% of your compensation for the year
Vesting
A participant’s right of ownership to the money in his or her plan account. You are always 100% vested in employee and employer contributions, plus any earnings they generate.
Accessing your money before retirement
Withdrawals
Money can be withdrawn from the plan in these events:
- Attaining age 59½.
- Death.
- Severance from employment.
Income taxes are payable upon withdrawal and federal restrictions and a 10% tax penalty may apply to early withdrawals. Be sure to talk with your tax advisor before withdrawing any money from your plan account.
In addition, the Internal Revenue Service (IRS) requires you to take Required Minimum Distribution (RMD) withdrawals from your retirement account(s) annually beginning the year you reach the RMD eligible age. RMD eligible age is:
- Age 73 if you were born January 1, 1951, or later (The RMD eligible age will increase to age 75 after December 31, 2032)
- Age 72 if you were born after June 30, 1949, and before January 1, 1951 (For individuals turning age 72 in 2023, no RMD payment is required in 2023)
- Age 70 ½ if you were born before July 1, 1949.
Hardship withdrawals
If you have an immediate financial need created by severe hardship and you lack other reasonable available resources to meet that need, you may be eligible to receive a hardship withdrawal from your voluntary contributions.
If you feel you are facing a financial hardship, you should see your financial professional for more details.
Important considerations before deciding to move funds either into or out of a Corebridge Retirement Services account
There are many things to consider. For starters, you will want to carefully review and compare your existing account and the new account, including: fees and charges; guarantees and benefits; and, any limitations under either of the accounts. Also, you will want to know whether a surrender of your current account could result in charges. Your financial professional can help you review these and other important considerations. Consult a tax professional before making a decision to move funds either into or out of a Corebridge account.
Loans
The plan is intended to help you put aside money for your retirement. However, Albany Law School has included a plan feature that enables you to access money from the plan:
- The amount the plan can loan to you is limited by rules under the tax law. All loans will be limited to the lesser of: one-half of your vested account balance or $50,000.
- The minimum loan amount is $1,000.
- All loans must generally be repaid within five years. A longer term of 15 years may be available if the loan is to be used to purchase your principal residence.
- You can have two (2) loans outstanding at a time.
- A $50.00 processing fee for all new loans and a $50.00 per year loan maintenance fee are charged to your account.
Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal tax penalty if you are under age 59½.
Other requirements and limits must be met prior to borrowing money from your account. For additional information regarding loans, please see your financial professional. Refer to the Summary Plan Description for more details about this participant loan feature.
RO2767020(03/2023)