Note: Employees should consult with their own tax advisors to make sure they are within the limitations set for by the IRS.

What is a TSA program?

The Tax Shelter Annuity Program, also known as a (403)b, is a voluntary program that allows eligible CSU employees to save toward retirement under Internal Revenue Code [IRC Section 403(b)].  The method for this savings is to invest pre-tax contributions in tax-deferred investments, either annuities or mutual funds. TSA contributions are made solely by the employee through payroll deductions, prior to the deduction of federal and state taxes.

Who is eligible?

All CSU employees except Student Classifications.

What is the minimum contribution allowed?

$15 per month per company. Investments may be made with one or two companies.

What are the annual contribution limits?

Employees can defer up to $15,500 for the 2008 tax year.

*NOTE: New information regarding offsets*

- Contributions to a 403(b) plan are no longer offset by contributions to a 457 plan. For example, for tax year 2008, a participant

could elect to contribute up to $15,500 to a 403(b) plan AND up to $15,500 to a 457 plan, for a total contribution of up to $31,000.

- Contributions to a 403(b) plan are offset by any contributions to a 401(k) plan in the same tax year. Employees contributing to both a 403(b) and a 401(k) plan are restricted by IRS regulations to a combined total of $15,500.

 

Each employee is responsible for their own calculations and to make sure the IRS limits are not exceeded.

How do I enroll in a TSA program?

1. Contact one or two of our TSA vendors to establish an account.  Press enter for a list of providers. You will not be able to enroll in the TSA until you have an account set up with one of these vendors.
2. Prior to the first day of the pay period in which the TSA is to become effective: Complete the CSU Salary Reduction Agreement (SRA). 
3. Get written confirmation from the vendor(s) that you have set up your TSA account(s). 
4. Submit the completed SRA and vendor confirmation to the Office of Human Resources, University Hall 165, ATTN: Benefits Administration.

What are the submission deadlines?

You may enroll throughout the year.  See the attached Submission Deadline Information sheet.

May I make additional contributions?

There are two "catch-up" provisions for making additional contributions; if you qualify, you may participate.

• Under IRC Code Section 402(g)(7), employees that have at least 15 years of service (full-time equivalent) with the CSU may be eligible to contribute an additional $3,000 per tax year for up to five years, for a total of $15,000. To take advantage of this catch-up allowance, complete the catch-up form. If you need instructions for this form, press enter. Bring or send the completed form to the Benefits Office in Human Resources, University Hall 165 .  
• Under IRS section 414(v), employees who are or will turn age 50 by the end of the current tax year (December 31) may contribute an additional $5,000 to a 403(b) plan or to a 401(k) plan, and also contribute an additional $5,000 to a 457 plan.

If an employee qualifies for both of the catch-up provisions, additional contributions will be first applied to the 15 year catch-up allowance and then to the age based catch-up provision.

What companies provide TSA investment accounts?

A list of eligible companies is available by pressing enter.

How can I compare the different TSA Providers?

Contact each provider directly and compare the services provided with your individual needs. Your tax advisor may be able to recommend which companies to consider.     

How can I compare the different pre-tax investment opportunities [401(k), 457 and 403(b)]?

A comparison chart is available from the California State University website.  Press enter.

Does the University support on-campus solicitation from TSA providers?

No; all companies are directed not to call or personally come to employee's place of work, unless requested by the employee.   Upon expressed invitation from an employee, an agent representing a company offering TSAs may meet with the employee during the employee’s free time in a location that will not interfere with normal University operations.  

How, and how often, may I make changes to my 403(b) account?

An employee may change companies and/or dollar amounts as often as once a month by submitting a new SRA Form.    

What is a tax year ?

Tax years for CSUN employees are calculated by Pay Periods: December 1st through November 30th.

How can I cancel my account?

Using the CSU Salary Reduction Agreement (SRA), sign a cancellation request.  It will become effective in your next pay period.  For example, a cancellation request submitted in December, 2007 becomes effective January 1, 2008 and will be reflected in your February 1st pay warrant. An employee receiving extended sick leave or catastrophic leave donation payments may elect to discontinue TSA contributions at any time; contact Benefits Administration for assistance.

How many plans/companies may I have accounts with simultaneously?

An employee may contribute to one (1) or two (2) TSA companies simultaneously.  Both companies must be entered on the same Salary Reduction Agreement.

May I use these funds to purchase CalPERS Service Credit?

CalPERS will accept a rollover to purchase additional service credit. For more information, press enter.

How can I save taxes on my unused vacation payout?

When you retire you may transfer your unused vacation pay to your 403(b) plan. NOrmally, when you cash out unused vacation credits the payment is taxable, but if you transfer it to your 403(b) plan you won't owe taxes until you withdraw the funds.

If you would like to proceed with the transfer, please contact Payroll Administration at ext 2314 at least 90 days before separating or retiring and put your request in writing at least 45 days in advance.

Where can I get more information?

Complete information on TSAs is available on the Salary Reduction Agreement (SRA).

• Call Monica Escontrias at x3810 or Cathy Salazar in Human Resources, x 2119
• Email monica.escontrias@csun.edu or cathy.salazar@csun.edu