Retirement+Plans

Retirement Plans
//Saving for Retirement// VJC offers a 403(b) retirement plan to encourage saving for retirement. The plan allows employees to save for retirement on a tax-deferred basis. Contributions and earnings grow on a tax-deferred basis until the funds are withdrawn from the plan. The plans are offered through [|T.Rowe Price Associates] and [|TIAA-CREF] (Teachers Insurance and Annuity Association - College Equities Fund).

//Eligibility// Employees may begin contributing to the plan with pre-tax contributions immediately upon employment, or anytime thereafter.

//VJC Match// Full-time employees and part-time employees -- except adjunct faculty members -- who have completed at least 1,000 hours of service during the prior 12 months, and have two years of employment, are eligible for the employer match. The match becomes effective the next January 1 or July 1, following the second year of employment.

Eligible employees who contribute 5 percent of more to their 403(b) accounts receive the VJC full 7.5 percent matching contribution. Here's how the match works:

Employee Contribution College Match 1% 1% 2% 2% 3% 3% 4% 4% 5% or more 7.5%

//IRS Specifications// IRS specifies how much employees may contribute to the plan each year. For 2006, employees may contribute a maximum of $15,000 to the plan. Employees 50 and older may contribute an additional $5,000 in the form of a "catch-up" contribution, for a total tax deferral opportunity of $20,000 for 2006. For additional information, employees are encouraged to contact a financial professional.