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Universal Availability Notice
Section 403(b) Plan
Offered by: James Madison University

James Madison University is a tax-exempt public education institution eligible to offer a retirement savings program as described under section 403(b) of the Internal Revenue Code (commonly referred to as a “403(b) Plan”). This notice is to make you aware of the 403(b) Plan and provide enrollment information.

Under the 403(b) Plan, employees may contribute on a pre-tax basis to a 403(b) account, in which any investment earnings grow tax-deferred until they are distributed. The employee is responsible for investigating and selecting an investment service program (a “vendor”) from among the vendors available under the 403(b) Plan and selecting from the investments offered by the vendor. Understanding the tax and investment consequences of the custodial account or annuity selected is your responsibility. You may seek investment, legal, or tax advice if desired.  IRS Publication 571 (Tax Sheltered Annuity Programs for Employees of Public Schools) is available at www.irs.gov for further information and reference.

Who is eligible to participate: Generally, all full-time and part-time employees are eligible to participate in the 403(b) Plan. However, an employee who is primarily a student is not eligible to participate in the 403(b) Plan.

Cancellation by the Employee: You have the right to cancel your future 403(b) contributions at any time. To do so, contact a benefits representative in Human Resources, 540-568-3970, to complete any required form(s) to discontinue salary reductions.

Termination of Payroll Deduction: In certain circumstances, your employer may automatically stop your 403(b) contributions. If your contributions will exceed the IRS annual contribution limit, your employer will automatically terminate payroll deductions to prevent excess contributions.

Annual Contribution Limits: The contribution limit, set annually by the IRS, is $17,500 for 2013.  Also, if you have at least 15 years of service with James Madison University and/or you are at least 50 years of age by the end of the year, you may qualify for special catch-up provisions.

Vendors (Investment Providers): James Madison University has a list of the current investment providers at https://www.jmu.edu/humanresources/benefits/investment.shtml.

Required Form: To initiate payroll deductions to a 403(b) account, you must execute the Employer’s Salary Reduction Agreement (SRA). The SRA should be completed by you and submitted to human resources for processing. There are other necessary documents, which are to be executed between you and the vendor.

This Notice should not be regarded as tax or legal advice. Your employer cannot provide you with tax or legal advice. Your employer does not endorse, recommend or guarantee the 403(b) investment offered by the vendor. Please contact your financial representative or tax professional with any questions.