Overview

403(b) and 457(b) deductions should be entered as MONTHLY AMOUNT to be deducted, NOT annual amount. Biweekly employees should note that the deduction is split between the two checks each month and if there is a third bi-weekly, no deduction will take place unless the employee has selected a percentage-based election.

You can choose flat amounts or percentage to be deducted from your paycheck. Flat Amounts are not deducted from special or off cycle checks. 70% is the max percentage that the Fidelity site allows. The combined percentage of 403(b) and 457(b) should not equal or exceed 100%.

As a UC employee, you can contribute to the 403(b) and the 457(b) as long as you are not a student working fewer than 20 hours per week. You can contribute to either plan or both plans, depending on your budget.

You may be eligible for special and lifetime catch-up provisions to increase your limits. Contact Fidelity to see if you are eligible.

• No matter what age you are, lifetime catch-up contributions for the 403(b) Plan allow you to contribute an additional $3,000 per year, up to a lifetime maximum of $15,000. There is no minimum age requirement, as long as you have at least 15 years of service with UC. Once you reach age 50, you can make regular pretax contributions, regular catch-up contributions, and lifetime catch-up contributions, up to IRS limits. Contact Fidelity to see if you are eligible.
• If you’re nearing retirement, special catch-up contributions for the 457(b) Plan allow you to contribute up to twice the current year’s regular pretax contribution limit during each of your last three years at UC. Contact Fidelity to see if you are eligible.

General

What’s the timeline to change the 403(b) and 457(b)?

Login to UCPath to see the calendar for timeline to change the 403(b) and 457(b).

Click on this link https://www.ucop.edu/ucpath-center/_files/mypath/calendar/rsp-enrollment-change-dates-2023.pdf

What is the difference between 403(b) and 457(b)?

The key difference between the two plans is how and when you can get access to your money. If you have an extreme financial need while you are working for UC and have to tap into your retirement savings, the UC 403(b) plan allows you to take a loan from your account if you need one. The 403(b) is intended to help you save for retirement, so make sure you examine all your other options before you take a 403(b) plan loan. The UC 457(b) plan will not allow you to take a loan from your plan account.

What happens to my retirement accounts if my UC employment ends?

Once your UC employment ends, you can contact Fidelity Investments to discuss your rollover options.

• If your balance in a plan is at least $2,000, you can keep your money in the plan and continue to take advantage of the benefits of UC’s Retirement Savings Program.
• If you have less than $2,000 in a plan when you leave UC employment, you may no longer keep the money in the UC Retirement Savings Program.
• Plan balances may not be combined to meet the $2,000 minimum balance requirement.

If you do not make arrangements for a distribution, your accumulation will be either:

• Rolled over to an IRA custodian in an account maintained for you, if your balance is more than $1,000.
• Paid directly to you at your address of record, if your balance is $1,000 or less. There may be tax penalties. See Fidelity Retirement Services for more information.

Contact Fidelity Investments at 866-682-7787, they can advise you of your next steps if you have money in the following plans: DCP, 403(b) and 457(b).

How do I get a loan from my 403(b) plan?

Please contact Fidelity at NetBenefits.com for online assistance or call (866) 682-7787 Monday–Friday, 9:00 a.m.–9500 p.m. PT

Can I pay off my 403(b) loan balance?

Yes, 403(b) outstanding loan balance can be prepaid without a prepayment penalty. To make a payment, contact Fidelity Retirement Services at 866-682-7787.

Can I rollover my retirement plan while active?

All plans are now available for in-service distributions at age  59 ½ or older.  This means that all employees  can make withdrawals or rollovers without problem or penalty - even if while actively working for University of California.   At the same time, if employee is eligible, contributions can still be made to all Plans as well.