Tax Deferred Annuities
Additional Post and Pre-tax Retirement Savings Options
The University offers additional retirement savings options alongside the required TCRS and ORP plans. These plans are separate from the TCRS and ORP and do not impact contributions to those plans. Under current tax law, the annuities provide opportunities to defer a portion of your income, the taxes on that income, and any interest earned until such time as you receive the funds, which usually occurs after retirement. In addition, employees who are separating from service may elect to make a tax deferred contribution from their unused annual leave payout. Participation in these programs is available to all regular full or part time faculty, staff, and residents, on a voluntary basis.
Plans include: 401(k), 457, or 403(b). Traditional (pre-tax) and Roth (post-tax) options are available for all plans. Contributions to the plans are subject to the IRS Annual Limit.
Contributions
Employee Contributions: The minimum employee contribution per plan is: $20 per month (401k, 457) and $25 per month (403b) up to the IRS annual limit. The 2026 Annual IRS limit is: $24,500. The age catch-up (age 50 and over) is: $8,000 for an annual maximum of $32,500.
Employer Contributions: UT provides a 401k match up to $50 per month to regular faculty and staff. Residents are not eligible for the employer match. TCRS Hybrid members also receive an automatic 5% employer contribution in a pre-tax 401k. Employee participation in the 401k is not required.
Enrollment
Residents
Residents are eligible to contribute to the 401k, 457 or 403b. Contributions are not automatic and do not have an employer match. Upon onboarding, Residents will receive information from the 401k/457 vendor Empower Retirement.
Overview of Plans
401k (pre-tax)
401(k) pre-tax contributions are tax deferred until money is withdrawn. Distributions from this plan are subject to ordinary income tax and if taken prior to age 59 ½, they may be subject to an additional 10% federal early withdrawal tax.
401k (post-tax)
Under the 401(k) Roth, you pay taxes on the money today and do not pay taxes when you withdraw the funds. However, if withdrawn prior to the required 5 year holding period or age 59 ½, income taxes and a 10% federal early withdrawal tax will apply.
457 (pre-tax)
457 pre-tax contributions are tax deferred until money is withdrawn. Distributions from this plan are subject to ordinary income tax.
457 (post-tax)
Under the 457 Roth, you pay taxes on the money today and do not pay taxes when you withdraw the funds.
Empower Retirement Contact:
Charlton Gutierrez | Retirement Plan Advisor
Mobile: 901.623.6917 | Charlton.Gutierrez@empower.com
Schedule a Consultation
403(b)
The 403(b) is an additional way to save for retirement. This plan does not include an employer contribution, and employees can enroll and make adjustments through DASH at any time. Employees will select either TIAA or VOYA as their provider. If you are contributing to both a 403(b) and a 401(k), the total combined contributions must not exceed the annual limit.
Enrollment
To enroll or update your 403b contributions, log into the DASH system. Select Benefits, Make Changes, Continue. Make sure to submit your changes.
403(b) Pre-tax
Pre-tax contributions are made from gross earnings. Distributions from this plan are subject to ordinary income tax and if taken prior to age 59 ½, may be subject to an additional 10% federal early withdrawal tax.
403(b) Post-tax
Post-tax or Roth contributions are made from earnings after taxes. Qualified distributions are tax free. Qualified distributions are made at age 59 1/2 or older after 5 years of account establishment.