SUNY New Paltz employees are eligible to participate in the SUNY Voluntary Savings Program (authorized under section 403(b)(1) of the IRS code) or the NYS Deferred Compensation Plan (authorized under section 457 of the IRS code), or both. These programs allow you to invest money that is deducted from your paychecks on a pre- and post-tax basis to add to your post-retirement income.
Through the pre-tax option, your contributions, plus earnings, are not taxed until you withdraw the funds, allowing for even greater savings through tax-deferred growth. Usually this will be during your retirement, when your income may fall within a lower tax bracket.
With the post-tax option, your contributions are taxed at the time you make them (via payroll deduction), and when you withdraw the funds (contributions or earnings), you are not taxed. Use of the post-tax option may help you maintain a balance against tax rates that increase over time.
Federal and state taxes are deferred until the money is withdrawn upon retirement or separation from service, allowing for even greater savings through tax-deferred growth. Employees may contribute any amount to each type of program within IRS limits, which are as follows for 2021:
SUNY Tax-Deferred Retirement Savings Program:
Under age 50: $20,500
Age 50 or over by Dec. 31, 2021: $27,000
Investment provider options vary according to your bargaining unit. View the pamphlet for more details, or visit the SUNY Benefits website (www.suny.edu/benefits/vsp).
To enroll in the SUNY Voluntary Retirement Savings Program, or if you would like to make changes to your contributions of your existing SUNY Voluntary Retirement Savings account, you must do so via the SUNY online enrollment and management system at www.retirementatwork.org/suny.
NYS Deferred Compensation Plan (NYSDCP)
Under age 50: $20,500
Age 50 or over by Dec. 31, 2021: $27,000
Certain contributions and/or distributions from these plans may have additional tax benefits. Please refer to NYS Tax or IRS guidelines. For more information on enrolling in the NYS Deferred Compensation Plan, or to change your deferral amount, call the NYSDCP helpline at (800) 422-8463 or visit the New York State Deferred Compensation Plan website.
