Voluntary retirement plans

Both the 403(b) and 457(b) plans are tax-advantaged supplemental retirement plans that allow participants to allocate pre-tax and after-tax Roth-based contributions through payroll deduction. There is no employer matching for either plan.

Contributions

• You can increase, decrease, stop or resume contributions at any time. 
• There is a minimum per-pay-period contribution of $10 for the 457(b) plan and $15 for the 403(b) plan. 
• You can contribute up to as much as your take-home pay allows after taxes and deductions. You cannot elect an amount that exceeds your take-home pay. If you elect an amount greater than your paycheck supports, then no contribution will be deducted.

Pre-tax vs Roth contributions

Pre-tax contributions are withheld before the calculation of federal and state income taxes, which reduces your taxable income. You pay income taxes only when the funds are distributed or withdrawn. 

With the Roth option, your contribution is withheld from your paycheck after your income is taxed. This does not lower your taxable income, but your contributions will be tax-free when you withdraw them later.

Catch-up provisions

You are eligible to make additional contributions if you are at least age at least 50 years old during the calendar year. Refer to the IRS contribution limit table for details. 

Your contributions will automatically stop during the calendar year if you are: 

• Under age 50 and reach the basic annual contribution limit. 
• Over age 50 and reach the age 50 or age 60-63 contribution limit. 

• Eligible, enrolled and reach either the 15-year rule or the double limit catch-up provision limit. 

   

   

Contributions will resume on the first pay date of the following calendar year.

Voluntary 403(b) plan 

The voluntary 403(b) plan is administered through the Arizona Board of Regents using Fidelity and TIAA as providers. Eligible employees can enroll with either provider through the NetBenefits website. 

There is a $11.50 quarterly administrative charge for participation in the 403(b) plan. If you sign up with both providers, you will be charged the administrative fee for each provider. 

You may be eligible to make additional 403(b) contributions if you have at least 15 years of service and under-contributed in prior years. Contact your provider for help determining eligibility. 

Plan documents and resources: 

• 403(b) contribution deadlines. 
• Plan Guide.
• Loan policy.
• NetBenefits.
• Plan document. 
• Tools and resources.

Voluntary 457(b) plan

The voluntary 457(b) plan is a supplemental retirement plan available exclusively for public employees. This plan is administered by the Arizona State Retirement System using Nationwide as the provider. Eligible employees can enroll through the Nationwide website. 

Note: Nationwide offers participants the option to elect a percentage for their contribution. ASU cannot process this type of election. ASU employees must elect the before-tax or after-tax options and set a per-pay-period contribution amount. 

You may be eligible to make additional 457(b) contributions under the 457(b) Plan Double Limit Catch-up provision and contribute up to double the basic annual limit if you are within three calendar years of retirement. Contact Nationwide to determine if you are eligible. 

Plan documents and resources: 

• Enrollment self-service. 
• Learning center.
• Plan highlights.