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Tax-Sheltered Annuity (TSA) Program    

As an employee of  The University of Texas at El Paso, you are eligible to participate in the Tax-Sheltered Annuity Program.*  This program permits an employee to set aside a portion of his or her salary on a tax-sheltered basis by purchasing an annuity or a mutual fund from an authorized financial institution. The employee is not taxed on the amount of salary set aside until income is received from the investment, presumably after retirement when income tax rates are generally lower. The amount of income which may be sheltered in any one tax year cannot exceed the employee’s contribution limit formula.

You may elect to start participation in the Tax-Sheltered Annuity Program effective the first day of any month, provided all forms have been properly executed and submitted to Office of Human Resource Services in accordance with institutional policy. The "Optional Retirement and Tax-Sheltered Annuity Purchase Agreement," (ORP-TSA Form 3), and the Contribution Limit Formula are generally available at the Office of Human Resource Services. You will be required to obtain an application from the company you select prior to enrollment. Changes in the amount of income that you wish to tax shelter are permitted in accordance with institutional policy. You may discontinue participation at any time. Participation may be reinitiated any time after 90 days have elapsed following discontinuation.

Complete and partial cash withdrawals may be made under certain circumstances. Procedures for obtaining proceeds from investments vary from one company to another. Each employee who is interested in the Tax-Sheltered Annuity Program is urged to contact his or her own agent for advice and to study the tax and other benefits carefully before enrolling.

The U. T. System Board of Regents approved IRS Section 403(b) investments under this program and 403(b)(7) "mutual fund" products are also available for employees of The University of Texas System.

For your protection, you should not sign any transaction forms relating to application, transfer or withdrawal of any TSA contributions based solely on assurances from a company representative, broker or agent if you have any doubts about the transaction. Lack of knowledge or deceptive practices by a representative, broker or agent could be costly to you in terms of money, taxes and penalties. The University cannot assume any responsibility either for investment terms or for tax status, and of course there is no guarantee of the tax rate that will be in effect at the time of an employee’s retirement.

A list of TSA companies authorized by The University of Texas System to offer annuity products and mutual funds is available at the Office of Human Resource Services, and on this web site.

*The University of Texas System Tax-Sheltered Annuity Program is subject to all applicable provisions of Sections 403(b) and 415 of the U.S. Internal Revenue Code of 1986, as amended, as well as to Section 6228a-5, V.T.C.S.

 

To enroll in the TSA Program or for further information, contact your Benefits Representative at benefits@utep.edu or 915-747-5202.