Other Information

Contributions to this plan are subject to the provisions and limitations of the Internal Revenue Code and IRS regulations and rulings, including the contribution limits in Sections 402(g), 401(m), and 415.

All University contributions to this plan must be used for the benefit of plan members and beneficiaries. Once made, the contributions cannot be taken back by the University, except if made as a result of a mistake in fact. A mistaken over-contribution to your account by the University will be returned to the University. A contribution by you that exceeds any of the limits or is otherwise a mistake will be transferred to your account in the Supplemental Retirement & Savings Plan or returned to you, with earnings, in accordance with IRS rules.

You should also know about the advantages of this plan, investment restrictions, tax considerations, and other administrative and legal issues.

Tax Considerations

Federal income tax must be withheld from the taxable portion of all plan benefits that you or your beneficiary receive, unless you or your beneficiary elect otherwise.

Under current federal law, ordinary income tax applies to payments to you from your plan accounts (not including payments considered to be a return of after-tax contributions you have made—these are recovered without additional income tax under specific rules for determining the after-tax portion of each payment).

In addition, a 10% penalty tax applies to all payments you receive before you reach age 59½, except certain payments in the form of an annuity. The 10% penalty tax does not apply if payments are received because of your death, disability, or early retirement at age 55 or older; or in connection with a Qualified Domestic Relations Order; or in amounts that do not exceed your tax-deductible medical expenses or certain amounts spent for health insurance in the event of your extended unemployment.

You may be able to postpone payment of taxes if you are able to roll over your plan distribution to an IRA or another plan that accepts rollovers. Any contributions in the plan may be transferred to an IRA or another 403(b) arrangement or qualified plan that accepts such contributions, in order to continue earning tax-deferred interest or investment gains.

All cash distributions from the plan, except those payable as an annuity or in periodic installments for at least 10 years, those payable to non-spouse beneficiaries, and those mandated by minimum distribution rules, will be eligible for direct transfer to an IRA or another plan that will accept them. If these distributions are not directly transferred to an IRA (or to another employer plan that will accept them), they will be subject to a mandatory 20% federal income tax withholding.

Payments to Others

Your rights under the Retirement Plan cannot be assigned or used as collateral, and your accounts are not generally subject to attachment or garnishment. However, under federal law, the plan must honor a Qualified Domestic Relations Order from a court requiring payment to a divorced or separated spouse or for child support or a proper lien on your accounts for payment of overdue taxes and certain other specified types of liens and attachments. Upon request to Human Resources, a copy of the plan’s Qualified Domestic Relations Order Procedures is available at no cost.

Not Insured by PBGC

Retirement Plan benefits are not guaranteed by the Pension Benefit Guaranty Corporation (PBGC), which does not cover plans such as this one with individual accounts for each participant. Upon termination of the plan, you would be eligible to receive the total amount credited to your accounts.