NIU offers employees the opportunity to enroll in the NIU 403(b) Supplemental Retirement Plan.  The Plan allows employees to make tax-deferred (pre-tax) contributions and invest with one of the six (6) approved 403(b) Vendors:
 
- American Century
- Fidelity Investments
- ING
- Lincoln National
- TIAA-CREF
- VALIC

The 403(b) tax-deferred compensation option permits the employee to invest on a tax-deferred basis for future retirement benefits.

Effective July 1, 2009, the NIU 403(b) Supplemental Retirement Plan will be expanded to offer the 403(b) Roth option.  The 403(b) Roth option permits the employee to contribute after-tax compensation to the same approved six (6) vendors (listed above).  A brief summary of applicable information is provided below:

1)   Eligibility
Employees are eligible to contribute to both the pre-tax and the Roth after-tax options, provided the employee does not exceed the IRS calendar year 403(b) contribution limit.  The combined IRS calendar year limit for both pre-tax and Roth after-tax contributions is a total of $16,500, if you are under the age of 50.  An additional catch-up contribution limit of $5,500 is applicable if you are age 50 or older.

2)   Contribution Differences
The 403(b) tax-deferred (pre-tax) contributions are not included in your taxable income.  Income tax is deducted upon withdrawal or distribution of the tax-deferred 403(b) contributions.

The 403(b) Roth contributions are made on an after-tax basis and are included in your taxable income at the time of contribution.  Upon withdrawal or distribution, earnings are tax free provided they meet the definition of a qualified distribution.  A qualified distribution is one that is taken at least 5 years from the first Roth 403(b) contribution and after the age of 59 1/2 (or following death or disability).

The NIU 403(b) Supplemental Retirement Plan allows you to enroll in one or both options (pre-tax and/or Roth) with one approved vendor.  A Certified Financial Advisor or Tax Consultant can assist you with deciding which option (pre-tax and/or Roth 403(b)) is best suited for your future plans.  A fact sheet detailing required enrollment documents for each vendor can be found at http://www.hr.niu.edu/resources/files/NIU Supplemental Retirement Plan 403(b) Vendor Fact Sheet.pdf  along with a 403(b) information brochure which can be found at http://www.hr.niu.edu/resources/files/403 pre tax roth and 457 brochure 2009.pdf.  Employees wanting to begin Roth contributions on the July 1-15th payroll should submit the necessary forms and documentation (detailed in the attached fact sheet) HRS by June 25, 2009, otherwise paperwork will be processed for the applicable pay period as it is received.    Please note TIAA/CREF Roth contributions cannot begin until the August 16-31, 2009 payroll.