Defined Contribution 403b Retirement Annuity Plan
MICA's retirement annuity plan (403b) is referred to as a "Defined Contribution Plan" which gives all full time employees the opportunity to participate in the plan when you are benefit eligible, (new employees first of the month following or coinciding with your hire date). You participate by making contributions into the plan, receiving matching dollars each pay cycle.
Once you are a participant in the plan you can make contribution changes at any time during the year. You are immediately vested into the retirement plan, which means you are eligible for 100% of the College's contributions. For each 1% contribution made by you the employee, MICA will contribute 1 ½%, up to 9%. You may choose to make traditional 403(b) pre-tax contributions and/or Roth 403(b) post-tax contributions.
Each year the Federal Regulations change regarding the annual maximum contribution an individual can contribute. If you are over the age of 50, you are allowed to contribute an additional amount each year. The minimum contribution is 1% of your income to participate in the retirement plan. The maximum match by the College is 9% (see chart below.)
| Employee pre/post tax contribution % | MICA match % |
|---|---|
| 1% | 1½% |
| 2% | 3% |
| 3% | 4½% |
| 4% | 6% |
| 5% | 7½% |
| 6+% | 9% |
The minimum contribution is 1% of income to participate in the retirement plan.
Part-time employees are eligible to participate in the plan and are eligible for matching funds from the College if they work at least 20 hours a week.
Federal Guidelines limit the annual tax deferred contributions you make to a retirement plan, (see chart below.
| Federal Limits | 2017 |
|---|---|
| Employee contributions to 403b | $18,000 |
| Age 50 and over catch-up contributions to 403b | $6,000 Additional |
If you are interested in enrolling in the retirement plan, see Human Resources for an enrollment packet.
For further information contact:
* Contact TIAA CREF by phone at 800-842-2888
* Contact Lincoln Life by phone at 800-341-0441
*Please note, MICA is no longer accepting contributions to Lincoln Life (10/2016)