Voluntary Retirement Savings Plans
Bowling Green State University offers two voluntary retirement plans, the 403(b) and 457(b), to help employees plan for retirement. Eligible employees may participate in both plans, which doubles the available amount that can be contributed each year, up to the annual IRS limits, on a pre-tax and/or Roth basis.
When making your selection(s), remember to take into consideration the fee structure. To start, stop, or update a plan and corresponding contribution, please review the information on the Approved Providers page and follow the insructions based on the vendor of your choice.
Use the following resource links to learn more about your voluntary retirement options.
Approved Retirement Providers
BGSU has selected TIAA to assist with ongoing administration plans. Visit this resource page to learn more about TIAA's services and contact information for the state retirement plans and the providers of the University-sponsored plans.
The Ohio Deferred Compensation 457(b) plan
BGSU provides a 457(b) plan through Ohio Deferred Compensation. This plan has an available Roth option. To enroll or update your election through Ohio Deferred Compensation, please contact them directly through their online services or 1-877-644-6457.
The BGSU 457(b) plan
BGSU also provides a 457(b) through three of our approved providers. This plan has an available Roth option. You can choose to invest with TIAA, Voya or Equitable. Fidelity is not an option in this plan. To enroll or update your election, log in directly to the Retirement@Work portal.
Investment menu
The voluntary plans offer a range of options that were carefully selected by BGSU to give you the ability to create a diversified retirement portfolio to match your investment goals and preferences. You can make changes to your investment allocations at any time. The investment menu for the BGSU 457(b) plan, 403(b) plan and Alternative Retirement Plan are identical. These plans also offer a brokerage window in which you may select a wide array of investments. Please note that the investment funds within the brokerage window are not monitored by BGSU. As a reminder, after enrolling, you must log in to your selected provider’s website to select your investments and identify your beneficiary(s).
The Brokerage option
The brokerage option will be available in the BGSU 457(b), 403(b), and ARP plans and provides you the opportunity to allocate a portion of your account balances to a wide range of mutual funds beyond those offered in the core investment menu. Choices include thousands of investment options from well-known mutual fund families. Keep in mind that BGSU neither selects nor monitors investment funds available through self-directed brokerage accounts, and your selected vendor does not offer investment advice for balances in these accounts. To learn more, contact your selected vendor.
Roth contribution option in the existing 403(b) and new 457(b) plan
Both the existing 403(b) plan and the new 457(b) plan will offer you the option to make Roth after-tax contributions in addition to the current pretax contributions. With the Roth option, taxes are paid at the time of contribution so that you can withdraw them, and the amount earned on these contributions is tax-free. Withdrawals of earnings after age 59½ are tax-free if the distribution is taken no earlier than five years after the Roth contributions were first made.
The Roth in-plan conversion feature
You will have the opportunity to convert some (or all) of your pretax retirement plan savings (contributions and earnings) to Roth with the Roth in-plan conversion feature. Roth in-plan conversions cannot be reversed after the change is made. The amount converted is treated as taxable income in the year of conversion; no taxes are withheld from your account as part of the conversion. Before electing a Roth in-plan conversion, consult your tax advisor to ensure this strategy is consistent with your overall financial goals. For more information about the Roth in-plan conversion feature, please contact your selected vendor.
Financial Wellness and Advice
As a participant in the program, you have access to personalized advice on the plan’s investment options from a financial consultant with your selected vendor. You can also take advantage of the current CAPTRUST Financial Wellness & Advice program. You can call the CAPTRUST Advice desk at 1-800-967-9948 or visit captrustadvice.com to schedule a meeting or ask a question.
CAPTRUST Advisers can provide information to you regarding:
- Creating a Budget
- Managing Debt
- Saving for Your Child’s Education
- Determine if you are on track for retirement
- and many other financial topics…
CAPTRUST does not sell any products. This service is available as part of your BGSU-sponsored benefit program at no additional cost to you.
403(b) vs. 457(b) Comparison Chart
| Features | 403(b) plan | 457(b) plan |
|---|---|---|
| Eligibility and participation | Benefits-eligible employees generally able to participate Consult plan document for rules on eligibility and enrollment |
Benefits-eligible employees generally able to participate Consult plan document for rules on eligibility and enrollment |
| Employee salary reduction (pre-tax) contributions |
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| Employee Roth (after-tax) contributions |
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| Age 50 catch-up amounts—Section 414(v) |
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| Rollovers |
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| Loans | Permitted. Availability subject to plan rules | Not permitted via plan rules |
| Early withdrawal penalty | None for employees who separate from service at or after age 55. Otherwise, 10% on withdrawals generally before age 59 1/2. Exceptions include death and disability. | No early withdrawal penalties. |
| Roth in-plan conversion | Permitted via plan rules
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Permitted via plan rules
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| Direct transfers and rollovers in |
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| Tax reporting | 1099-R issued by vendor | 1099-R issued by vendor |
| Taxability | Pre-tax contributions will be taxed in the year you take the distribution. Roth distributions are tax free if first contribution was made at least five years earlier and theowner is at least 59 1/2, disabled or deceased. | Pre-tax contributions will be taxed in the year you take the distribution. Roth distributions are tax free if first contribution was made at least five years earlier and theowner is at least 59 1/2, disabled or deceased. |
Please consult the Plan Document for full information.
Updated: 04/26/2024 03:21PM