Agreement For Salary Reduction Under Section 403(B) Form printable pdf download

Agreement For Salary Reduction Under Section 403(B) Form

THIS SAMPLE AGREEMENT IS TO BE USED SOLELY AS A GUIDE FOR THE

INSTITUTION’S OWN LEGAL COUNSEL

(Plan Sponsor’s Letterhead)

Agreement for Salary Reduction Under Section 403(b)

By THIS AGREEMENT, made between _______________________ (the Employee) and

_____________________ (the Institution), the parties hereto agree as follows:

Effective for amounts paid on or after _________________, 20___, which date is subsequent

to the execution of this Agreement, the Employee’s salary will be reduced by the amount indicated

below. At the same time, the Institution will contribute a corresponding amount to the Employee’s

annuity contract(s) (or custodial accounts, if applicable) which the Employee will allocate among the

funding vehicles approved by the Institution.

This agreement shall be legally binding and irrevocable for both the Institution and the

Employee while employment continues. However, either party may terminate or otherwise modify

this Agreement as of the end of any month (or pay period, if applicable) by giving at least thirty days

written notice so that this Agreement will not apply to salary subsequently paid.

The amount of the salary reduction* shall be: (check one)

( )

_____% of gross annual salary

( )

$__________ per pay period

( )

The maximum amount allowed under law

This amount will produce a total Institution contribution that does not exceed the Employee’s

statutory limitation under IRC Section 415 or Section 402(g) whichever is less.

For employees age 50 and over, additional catch up contributions are permitted under IRC 414(v).

If you are eligible, you must separately elect this amount:

( )

$ _______% of gross annual salary

( )

$ _______ Maximum Catch-up Amount

The amount will be contributed by the Institution to the following authorized funding vehicles:

TIAA-CREF (Group) Retirement Annuities (______%)

TIAA-CREF (Group) Supplemental Retirement Annuities ______%

Other Funding Vehicle_____%

Signed this _________ day of _________________, 20___.

________________________________________________

(Employee)

(Employing Institution)

By ________________________________________________________________________

(Name)

(Title)

*This amount should be reviewed with the Business Office prior to the execution of this Agreement.

Agreement For Salary Reduction Under Section 403(B) Form