Retirement Plan Alternative (RPA)
 
  Medical Resident / Post Doctoral
 
 
About Your Plan: TSA
 

403(b) Tax Sheltered Annuity (TSA)


How do I enroll in the Plan?
How much can I contribute?
What are the IRS contribution limits?
Can I make pretax contributions, after-tax contributions or both?
What are my Investment Options?
When am I vested?
Can I make withdrawals from my account?
Can I take a loan from my account?
What is my Plan Number?
How do I contact a Fidelity Representative?


How do I enroll in the Plan?
You can enroll in the Plan now by clicking on the "Enroll Today" tab above to get started.

If you do not make an investment election, your contributions will be directed to the Fidelity Freedom Fund that has a target retirement date closest to the year you might retire, based on your date of birth and assuming a retirement age of 65, as directed by NSHE. For more detail, please refer to the Freedom Fund spectrum and chart in the Investment Options section of the Enrollment Guide. To change this default election, simply call the Fidelity Retirement Benefits line at 1-800-343-0860 or visit Fidelity NetBenefits®.

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How much can I contribute?
The Nevada System of Higher Education offers the 403(b) Tax Sheltered Annuity (TSA) as an opportunity to save additional assets for retirement. Participation in the TSA is voluntary with contributions being made in a specific dollar amount each pay period rather than a percentage of pay. All contributions to the TSA are subject to annual IRS limits.

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What are the IRS contribution limits?
If you are under age 50 the IRS contribution limit is $17,000 for 2012. If you will be at least age 50 during the year, your plan may allow you to defer an additional $5,500 as catch-up contributions.

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Can I make pretax contributions, after-tax contributions or both?
Nevada System of Higher Education TSA Program offers you the choice of making pretax contributions, after-tax contributions, or a combination of the two.

Pretax contributions are deducted from your pay prior to federal and state taxes allowing your contributions to grow tax deferred until they are withdrawn from your account, at which point they are subject to applicable taxes.

What is the Roth contribution option? A Roth contribution to your retirement savings plan allows you to make after-tax contributions and take any associated earnings completely tax free at retirement—as long as the distribution is a qualified one. A qualified distribution, in this case, is one that is taken at least 5 tax years after your first Roth 401(k) contribution and after you have attained age 59 ˝, or become disabled or die. Through automatic payroll deduction you may contribute up to 25% of your eligible pay designated as Roth contributions, up to the annual IRS dollar limits.

For more information go to http://www.fidelity.com/atwork/roth.

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What are my investment options?
The Plan offers Fidelity Freedom Funds® that offer a blend of stocks, bonds and short-term investments within a single fund. Each Freedom Fund's asset allocation is based on the number of years until the fund's target retirement date. The Freedom Funds are designed for investors who want a simple approach to investing for retirement.

Fidelity Freedom Funds are designed for investors expecting to retire around the year indicated in each fund's name. Except for the Freedom Income Fund, the funds' asset allocation strategy becomes increasingly conservative as it approaches the target date and beyond. Ultimately, they are expected to merge with the Freedom Income Fund. The investment risks of each Fidelity Freedom Fund change over time as the funds’ asset allocations change. The funds are subject to the volatility of the financial markets, including equity and fixed income investments in the U.S. and abroad and may be subject to risks associated with investing in high yield, small cap, commodity-linked and foreign securities. Principal invested is not guaranteed at any time, including at or after the target dates.

Click Here to download a copy of your Plan's Enrollment guide which consists of a complete list of the investment options available to you.

For investors who prefer to create their own portfolio, Fidelity offers a wide selection of investments to choose from. Contact Fidelity for additional investment information including mutual fund prospectuses. Please read the prospectus carefully before you invest. For more information, speak with a Fidelity Retirement Services Representative at 1-800-343-0860.

Before investing in any mutual fund, please carefully consider the investment objectives, risks, charges and expenses. For this and other information, call Fidelity at 1-800-343-0860 or visit www.fidelity.com for a free prospectus or a summary prospectus (if available). Read it carefully before you invest.

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When am I vested?
You are immediately 100% vested in your own contributions to the Nevada System of Higher Education TSA Program.

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Can I make withdrawals from my account?
Withdrawals of voluntary contributions from the Plan are generally permitted when you terminate your employment, or retire.

The taxable portion of your withdrawal that is eligible for rollover into an individual retirement account (IRA) or another employer's retirement plan is subject to 20% mandatory federal income tax withholding, unless it is rolled directly over to an IRA or another employer plan. (You may owe more or less when you file your income taxes.) If you are under age 59˝, the taxable portion of your withdrawal is also subject to a 10% early withdrawal penalty, unless you qualify for an exception to this rule. The plan document and current tax laws and regulations will govern in case of a discrepancy. Be sure you understand the tax consequences and your plan's rules for distributions before you initiate a distribution. You may want to consult your tax advisor about your situation. To learn more about and/or to request a withdrawal, log on to Fidelity NetBenefits® or call a Fidelity Representative at 1-800-343-0860.

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Can I take a loan from my account?
Although your plan account is intended for the future, you may borrow from your account for any reason.

Generally, the Plan allows you to borrow up to 50% of your vested account balance. The minimum loan amount is $500, and a loan must not exceed $50,000. You then pay the money back into your account, plus interest, through after-tax payroll deductions. Any outstanding loan balances over the previous 12 months may reduce the amount you have available to borrow.

You may have one loan outstanding at a time. The cost to initiate a loan is $50, and there is a quarterly maintenance fee of $6.25. The initiation and maintenance fees will be deducted directly from your individual plan account.

If you fail to repay your loan (based on the original terms of the loan), it will be considered in "default" and treated as a distribution, making it subject to income tax and possibly to a 10% early withdrawal penalty. Defaulted loans may also impact your eligibility to request additional loans. Be sure you understand the Plan guidelines and impact of taking a loan before you initiate a loan from your plan account. To learn more about or request a loan, log on to www.fidelity.com/atwork or call the Fidelity Retirement Benefits Line at 1-800-343-0860.

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What is my Plan Number?
The Plan Number assigned to the Nevada System of Higher Education TSA Program is:

59483

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How do I contact a Fidelity Representative?
Call the Fidelity Retirement Service Representatives at 1-800-343-0860, Monday through Friday from 8:30 a.m. to Midnight EST, or, use the automated voice response system, virtually 24 hours, 7 days a week.

Or, you can set up an appointment to meet with a Fidelity representative.

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