To maximize your retirement savings, consider supplemental contributions. You decide the amount you want to contribute within IRS limits. See table below. The total dollar amount of your own contribution (your 5% matched contributions, both pre-tax and Roth, plus your supplemental contributions) to the USC Retirement Savings Program (but not the university’s contribution) counts toward your annual IRS limit. Vesting of your contributions is immediate. (Make sure you don’t put too much in your supplemental or you may hit your limit too soon and miss out on the university’s 5% match.)
|Type of limit||2019|
|403b under age 50||$19,000|
|403b age 50 and over||$25,000|
|Compensation limit (employer’s matched retirement contributions are limited to matches made on this amount of salary)||$280,000|
Your contributions are invested by the same investment providers selected by the university to manage the matched investment of the USC Retirement Savings Program. Each provider offers a wide variety of investment options.
You may elect to make supplemental retirement contributions as soon as you become a university employee. You will choose your investments and complete enrollment and beneficiary information for the investment provider(s) you select. Contributions to the supplemental plan do not count toward the USC Retirement Savings Plan (basic matched plan)—they are two separate contributions. However, the two contributions combined cannot exceed the annual IRS voluntary limit.
These options are always available; you do not have to wait for open enrollment. You can make changes to the amount of your contribution (including stopping contributions) at any time. You can change your investment allocation at any time. You also can transfer monies between the investment providers in the USC plan and between investment funds at any time subject to limitations on the frequency and amount of transfers set by the investment and investment providers.
If you have a retirement account from a previous employer, you may be eligible to rollover those funds into the supplemental retirement plan if you would like to consolidate your accounts. Contact your previous provider and Benefits for further information. Note that funds transferred will be subject to all of USC’s plan rules, including rules on accessing balances.
More information about supplemental contributions is available from Benefits. Extensive information is also available from each of the participating investment providers online.
Fidelity Investments | www.netbenefits.com/uscrsp
TIAA | www.tiaa.org/usc
Vanguard | www.vanguard.com/retirementplans
How to calculate your maximum supplemental retirement contribution for 2019
Since the USC plan requires you make a 5% contribution from each paycheck to obtain the university’s 5% match, you do not want to over-contribute to the supplemental category and not leave enough “room” for the university’s 5% basic match.
Step 1 – Estimate your total retirement eligible compensation this year and multiply by 5% to determine the total amount of basic matched contribution for 2019.
Step 2 – Subtract the basic matched contribution from the IRS limit: $19,000, or $25,000 for those age 50 and over, to determine the amount available for supplemental retirement. Reduce from the available amount any supplemental retirement already contributed. You can find YTD information on your payslip.
Step 3 – Divide the amount available for supplemental by the number of pay periods remaining in year to determine the optimal pay period contribution.
Remember, when you make a change to the amount of your contribution, it will take effect in the NEXT pay period, not the current pay period.
Participant Fee Disclosure Notice
The Participant Fee Disclosure Notice, required by the Department of Labor, was developed to help ensure that participants (and also employees who are not participating or not yet eligible to participate) receive sufficient information regarding their plan and the investment options available to them.
USC has directed TIAA, one of the investment providers available under the USC Retirement Savings Program, to collect this data from all of the vendors and present their information in a combined notice. This publication contains information that can help you make informed decisions about any account you may have in the retirement plan and includes:
- Fees and expenses related to plan accounts
- Participant rights under the plan
- Rules related to providing investment direction
- Details about the plan’s investment options, including investment-related fees and restrictions
For most participants, this notice will be provided annually. The most recent disclosures:
If you have any questions regarding this notice, please contact the USC Retirement Administration Office at firstname.lastname@example.org.