Students in the Tax-Sheltered Annuity Program
You're never too young to save for the future!
As a student employee, saving for retirement may be the furthest thing from your mind right now. But by starting to save when you are young, you gain a powerful ally: Time! With time on your side, even a small investment is worth a lot.
Through the UW TSA Program it's easy to save:$1,000 saved by the time you are age 25 could be worth $10,677 at age 60 (assuming a 7% annual return).
- Choose to make either pre-tax or Roth after-tax contributions or a combination of both options
- Choose your own investment from among over 350 mutual funds and annuities
- Make your investment automatically by payroll deduction
- Receive a further tax incentive if you qualify for the saver's credit
- Minimum deduction of $8.00 biweekly or $20.00 monthly
Want to know more? See Save Smart - Save Early!
The UW Tax-Sheltered Annuity Program is a voluntary supplemental retirement savings program authorized by section 403(b) of the Internal Revenue Code. You make the entire contribution; there is no employer match. The yearly fee to cover administrative costs is $12.00.
All University of Wisconsin employees, including student hourlies and graduate assistants, are eligible to participate. (Some employees-in-training, fellows, and interns are not eligible because they receive stipends rather than wages.) Eligible employees can enroll at any time.
Caution: A TSA account is not like a savings account. TSA investments generally cannot be withdrawn while you are still working for the UW. Most withdrawals before age 59 1/2 are subject to a 10% tax penalty.
To get started, choose an investment company, then complete a Salary Reduction Agreement (SRA) that authorizes the University to withhold a portion of your salary from each paycheck. The money is sent to the investment company(ies) that you have selected from among the authorized companies in the UW TSA Program. The company invests your money according to your instructions on your investment company account application.
Investment options include a wide array of mutual funds and fixed and variable annuities managed by ten authorized vendors. For a description of our investment companies see the Quick Guide to the TSA Program and the list of Authorized Investment Companies.
For detailed program information, see the TSA Q&A.
The UW Tax-Sheltered Annuity Program home page lists the full array of information about the program. If you have additional questions, you may contact your benefits office or e-mail the TSA benefits specialist.
This document was last revised on March 11, 2013