Voluntary Retirement Plans

The 403(b) and 457(b) plans allow employees to contribute additional funds for retirement savings on a pre-tax and post-tax basis. Contributions are made by employees only; no contributions are made by the university to these plans. The minimum contribution is $7.50 per paycheck. The maximum contribution varies by employee and annual IRS limitations.

Eligibility & Enrollment

All employees, including graduate assistants and student employees, are eligible. Employees must create a NMSU account with the applicable vendor before submitting a Salary Reduction form. Benefits are effective first of the pay period following the receipt of the Salary Reduction form unless a future date is requested.

403(b) Tax Sheltered Annuity Plan

Withdraw Options:

  • Attainment of age 591/2
  • Termination of employment
  • Disability

An additional federal tax penalty may apply if you receive a distribution prior to age 591/2.

Plan Documents:

2017 Maximum Contributions:

  • 403(b) – $18,000
  • Age 50 Catch Up – $6,000 (Employees age 50 or older or reaching age 50 during 2017 are eligible to contribute the additional catch up amount)

457(b) Retirement Savings Plan

Withdraw Options:

  • Attainment of age 701/2
  • Termination of employment
  • Disability
  • Unforeseen emergency withdrawals (as defined by the plan document)
  • No contributions within the past two years and account is greater than $5,000

No additional federal tax penalty for distributions prior to age 591/2.

Plan Documents:

2017 Maximum Contributions:

  • 457(b) – $18,000
  • Age 50 Catch Up – $6,000 (Employees age 50 or older or reaching age 50 during 2017 are eligible to contribute the additional catch up amount)

Vendor Options

NMSU Policy Reference: 7.34 Tax Sheltered Annuities