Tax-Deferred Programs

Tax Advantage Premium

Employees eligible for benefits are automatically enrolled in the Tax Advantage Premium Plan (TAPP). This plan allows you to pay required health plan premiums from your salary on a pre-tax basis. Premiums for the coverage selected by employees will be deducted each month from your salary before federal and state income and Social Security/Medicare taxes are calculated and deducted. This means employees will not pay taxes on those premiums. If employees do not wish to participate in TAPP, contact the Benefits Office.

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Tax-Sheltered Annuity (TSA) Program 403(b)

• Eligible employees may participate in an IRC 403(b) tax-sheltered annuity plan.
• Allows an employee to defer a maximum pre-tax deduction of $16,500 for 2010.
• There is no employer matching contribution.
• VALIC is the Master Administrator
• There are five Fund Sponsors:
  • VALIC (Group Plan Number 01412001)
  • Fidelity Investments (Group Plan Number 50537)
  • ING Life and Annuity Company (Group Plan Number vfr597 - Kit #140550)
  • MetLife Resources (Group Plan Number 1009800-01)
  • VALIC (formerly AIG Retirement) (Group Plan Number 01412001)
    

Enrollment Information

• Review the TSA Enrollment Booklet
• Enroll online through Retirement Manager.
  

Catch-Up Allowance

• Employees may be eligible for the 15-Year and/or Age 50 Catch-Up.
• If an employee qualifies for both the 15-Year and Age 50 Catch-Up, the 15-Year Catch-Up must be exhausted before the Age 50 Catch-Up is applied.
• Employees must demonstrate eligibility by completing and returning to HRS the CSU Maximum Contribution Allowance Worksheet.
  

Change or Reallocation of TSA Contributions

• To change the amount you contribute or how your contributions are directed among the Fund Sponsors login to your account through Retirement Manager or call (866) 294-7950.
• To reallocate your contributions within the Fund Sponsor’s investment options contact your Fund Sponsor:
  • VALIC
  • Fidelity Investments
  • ING Life and Annuity Company
  • MetLife Resources, and
  • TIAA-Cref
• The cutoff day to make changes in Retirement Manager is the 5th of each month by 9:59 p.m. Pacific Standard Time (PSt) or the next business day by 9:59 p.m. if the 5th falls on a holiday or weekend.
  

Contract Exchanges, Loans and Hardship Withdrawals

• Information on exchanges, loans and hardship withdrawals
  

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State-Deferred Compensation (457) and State Thrift Plan 401(K)

Eligible employees may defer taxes on a portion of their earnings by investing in the Savings Plus Program. Employees have the option of choosing between the State-Deferred Compensation Plan (457) and the State Thrift Plan 401 (K). The Savings Plus Program offers different investment options plus the opportunity to use a self-managed account to invest in mutual funds. For more information and to enroll in this program, call Savings Plus at (866) 566-4777 or visit the website at www.sppforu.com

Pre-Tax Parking

Eligible employees may pay for CSULA parking expenses with pre-tax dollars. This pre-tax benefit is available only through payroll deduction and participation in the plan is automatic unless the employee chooses otherwise. Deductions are taken from employees’ paychecks before federal, state, Social Security, and Medicare taxes are calculated. Taxable income reflected on an employee’s W-2 statement is reduced. If employees do not wish to participate in the Pre-Tax Parking program, contact the Benefits Office. 

Dependant Care Reimbursement (DCRA) and Health Care Reimbursement (HCRA)

These plans allow for reimbursement of out-of-pocket dependant care or health care expenses from money deducted from an employee’s paycheck before federal, state and FICA taxes are deducted. Taxable income reflected on an employee’s annual W-2 statement will be reduced by the amount placed in the account. Initial enrollment must be made within 60 days of appointment or a qualifying event. Subsequently, employees must renew enrollment during annual open enrollment periods. For more information about these plans, employees may call (800) 366-4827 or go to http://www.asiflex.com.

HRCA

Expenses eligible for reimbursement from the CSU Health Care Reimbursement Account are expenses incurred by an employee, employee’s spouse and dependants for the diagnosis, cure, treatment or prevention of disease, and for treatments affecting any part or function of the body. Expenses solely for cosmetic reasons or expenses that are merely beneficial to a person’s general health are not reimbursable.

Employees may contribute any amount from a minimum of $20 per month to a maximum of $416.66 per month.

DCRA

Expenses eligible for reimbursement from the CSU Dependant Care Reimbursement Account are expenses for certain dependant care if the care is required in order for the employee to work. Eligible dependants for whom the reimbursements can be claimed are:

• A child under age thirteen (13) for whom an employee or spouse can claim dependant status on their income tax return,
• A spouse who is physically or mentally unable to care for him/herself, or
• A financially dependant member of an employee’s household, who regularly spends at least eight hours each day in the employee’s home.

Employees may contribute any amount from a minimum of $20 per month to a maximum of $416.66 per month ($5000 annual maximum); however, if an employee is married and filing a separate tax return, the annual maximum is $2500. If an employee’s or spouse’s earned income is less than $5,000 a year, the maximum contribution is equal to that person’s earned income.