Tax-Sheltered Annuity Program
What is the tax-sheltered annuity program?
The tax-sheltered annuity (TSA) program allows UW-L employees to make voluntary, pre-tax investments toward retirement under the Internal Revenue Code 403(b). Employees choose an approved tax-sheltered annuity vendor and complete a vendor application by contacting the company of choice directly. Please note all eligible employees must be enrolled in a UW-System 403(b) account. Once the account is open, employees complete a Salary Reduction Agreement to have a specified amount deducted each pay period.
You cannot file the Salary Reduction Agreement with Human Resources until you've completed a vendor application. Please recall, this account must be a UW-System 403(b) account and not an account with the vendor from previous employment.
It's very easy and most applications can be completed online. See detailed instructions at Employee Benefits.
Contributions and earnings accumulate tax-free until you begin receiving them. The TSA plan is not subject to ERISA, a federal law which, in part, requires participants to name a spouse as beneficiary of at least 50 percent of an account.
Am I eligible to participate?
All permanent, project, and LTE employees and student workers of UW-L including graduate assistants are eligible to participate, with the exception of research assistants and employees-in-training, fellows, and interns. Eligible employees can enroll at any time.
How do I choose a TSA vendor?
Choosing a TSA vendor requires some time and research. If you have a financial planner, he or she may be able to lend you advice. If you are a new investor, you may consider a blended asset fund that is managed for you based on your risk tolerance and time until retirement. These funds may be called managed allocation funds, or funds of a fund. Contact TSA vendors directly to learn more about these types of funds.