TSA Plan Overview
Any contributions that you make to your Texas A&M Tax Sheltered Annuity (TSA) 403(b)(1) annuity contract after 12/31/88 and any earnings on the total account value that accumulates after 12/31/88 may only be withdrawn under one or more of the following circumstances:
- Severance from employment;
- Attainment of age 59½;
- Your death or disability; or
- Financial hardship.
There are no Internal Revenue Code (IRC) withdrawal restrictions on employee deferrals (including earnings) prior to 12/31/88 or any employer contributions (including earnings).
Note: Financial hardship withdrawals are limited to:
- Employee Deferrals made after 12/31/88.
Any contributions that you make to your Texas A&M TSA 403(b)(7) custodial account which offers mutual funds may only be withdrawn under one or more of the following circumstances:
- Severance from employment
- Attainment of age 59 ½
- Your death or disability, or
- Financial hardship.
Note: Financial hardship withdrawals are limited to:
- Employee Deferrals; and
- Earnings on any employee deferrals and employer contributions (including earnings) as of 12/31/88.
For both the 403(b)(1) annuity contract and the 403(b)(7) custodial account which offers mutual funds, an Internal Revenue Service (IRS) 10% premature distribution penalty tax may be assessed on withdrawals unless you:
- Are age 59 ½;
- Become disabled or die;
- Separate from service in the same year or later than the year in which you reach age 55;
- Receive the funds under a settlement option payable over your lifetime or the lifetimes of you and your beneficiary;
- Use the funds to pay sizable medical bills not covered by insurance;
- Use the funds to pay a federal tax levy;
- Make payments made under a qualified domestic relations order; or
- Exchange the funds for another 403(b) account or rollover the funds into an IRA.
Under the Plan, the maximum annual contribution amount is set by Internal Revenue Service (IRS) guidelines on a yearly basis. You may view the current limits here.
For the variable annuity contract, loans are available through the 403(b)(1) annuity contract. A loan provision is available to all participants with an account value of at least $2,000. You may borrow up to 50% of the Texas A&M TSA 403(b)(1) value, not to exceed $50,000. The interest rate of 6% - 2.5% is retained by Voya Retirement Insurance and Annuity Company (“VRIAC”) with the remaining 3.5% credited to the participant’s account. The maximum term for all loans is five (5) years; unless the loan is used to acquire your principal residence, in which case the maximum loan term may be extended to 20 years. Loan repayments are made quarterly.
For the mutual fund program, loans are available under the custodial account for the TSA plan. A loan provision is available to all participants with an account value of at least $2,000. You may borrow up to 50% of the Texas A&M TSA custodial account value, not to exceed $50,000. There is a $100 one-time initiation fee. The interest rate is 6% - 6% is credited back to the participant’s account. The maximum term for all loans is five (5) years; unless the loan is used to acquire your principal residence, in which case the maximum loan term may be extended to 20 years. Loan repayments are made quarterly.
Please note: loans will reduce your account balance, may impact your withdrawal value and limit participation in future growth potential. Other restrictions may apply.
When you are ready to retire, under the 403(b)(1) annuity contract you may choose from several disbursement options including:
- Lump sum withdrawal;
- Partial withdrawal;
- Systematic withdrawal by specifying a percentage, a dollar amount, or a time period;
- Payments guaranteed for your lifetime or for as long as either you or your beneficiary are alive. Guarantees are based on the claims-paying ability of VRIAC. A 1.25% mortality and expense (M&E) risk charge applies to payments made on a variable basis during annuitization.
Under the 403(b)(7) custodial account which offers mutual funds, there are no systematic payouts, guaranteed lifetime or guaranteed specified period payment options available. When you retire, you may:
- Request a full or partial withdrawal (may be subject to federal withholding and possible tax penalties).
- Utilize the funds to purchase a single premium immediate annuity.
- Rollover to an IRA or another eligible retirement plan.
Voya does not offer tax advice. Please consult a tax advisor or attorney before making a tax-related investment/insurance decision.
You should consider the investment objectives, risks, and charges and expenses of the variable product and its underlying fund options; or mutual funds offered through a retirement plan, carefully before investing. The prospectuses/prospectus summaries/information booklets contain this and other information, which can be obtained by contacting your local representative. Please read the information carefully before investing.
Variable annuities and mutual funds under a retirement plan are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 59 ½, an IRS 10% premature distribution penalty tax will apply, unless an IRS exception applies. Money taken from the plan will be taxed as ordinary income in the year the money is distributed. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than its original amount invested. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.
For 403(b)(1) fixed or variable annuities, employee deferrals (including earnings) may generally be distributed only upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals made after 12/31/88. Exceptions to the distribution rules: No Internal Revenue Code withdrawal restrictions apply to '88 cash value (employee deferrals (including earnings) as of 12/31/88) and employer contributions (including earnings). However, employer contributions made to an annuity contract issued after December 31, 2008 may not be paid or made available before a distributable event occurs. Such amounts may be distributed to a participant or if applicable, the beneficiary: upon the participant's severance from employment or upon the occurrence of an event, such as after a fixed number of years, the attainment of a stated age, or disability.
For 403(b)(7) custodial accounts, employee deferrals and employer contributions (including earnings) may only be distributed upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: hardship withdrawals are limited to: employee deferrals and '88 cash value (earnings on employee deferrals and employer contributions (including earnings) as of 12/31/88).
Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) Voya Retirement Insurance and Annuity Company, One Orange Way, Windsor, CT 06095-4774. Securities are distributed by Voya Financial Partners LLC (member SIPC). Custodial account agreements or trust agreements are provided by Voya Institutional Trust Company. All companies are members of the Voya ® family of companies. Securities may also be distributed through other broker-dealers with which Voya has selling agreements. Insurance obligations are the responsibility of each individual company. Products and services may not be available in all states.