Virginia Western Community College is a tax-exempt public education institution eligible to offer a retirement savings program as described under section 403(b) of the Internal Revenue Code (commonly referred to as a “403(b) Plan”). This notice is to make employees aware of the 403(b) Plan and provide enrollment information.
Under the 403(b) Plan, employees may contribute on a pre-tax basis to a 403(b) account, in which any investment earnings may grow tax deferred until they are distributed. The employes are responsible for investigating and selecting an investment service provider (a “vendor”), choosing the investments offered by the vendor, and determining their participation in either a pre or post tax (Roth) plan or both. Virginia Western is only authorized to conduct business with 403(b) providers that have a current agreement on file between the college and the provider.
Understanding the tax and investment consequences of the custodial account, the annuity selected, and Roth requirements is the responsibility of the participant. The participant may seek investment, legal, or tax advice if desired. Many, if not all, 403(b) providers have certified financial advisors. IRS Publication 571 (Tax Sheltered Annuity Programs for Employees of Public Schools) is available at www.irs.gov for further information and reference.
Who is eligible to participate: Generally, all full-time employees are eligible to participate in the 403(b) Plan. Persons occupying an elective or appointive public office are one exception; they are not employees performing services for a public school unless such office is one to which an individual is elected or appointed and only if the individual has received training, or is experienced, in the field of education. In addition, regular part-time education employees, adjunct faculty and other employees who routinely work 20 or more hours per week are eligible to participate in the 403(b) Plan but are not eligible for a cash match.
Cancellation by the Employee: Employees have the right to cancel their 403(b) contributions at any time. To do so, contact Human Resources and complete any required form(s) to discontinue salary reductions.
Termination of Payroll Deduction: In certain circumstances the college may automatically stop the participant’s 403(b) contributions. If the contributions will exceed the IRS annual contribution limit, we will automatically terminate payroll deductions to prevent excess contributions. If the college is notified it has no record of the participant’s account, deductions will be stopped until the problem is resolved.
Annual Contribution Limits: The contribution limit, set annually by the IRS, is $24,500 for the year 2026. As a catch-up provision, employees may contribute up to an additional $8,000 for 2026 if they have at least 15 years of service and/or they are at least 50 years of age by the end of the year. However, employees that are ages 60 to 63 may contribute a catch-up provision of $11,250. Note that employees may max out the annual contribution limit in both a 403(b) and the 457(b), but there will be only one cash match for eligible employees. The cash match for 2026 provided to eligible employees remains at $.50 on the $1.00 up to $40.00/month max or up to $480/year. The minimum payroll deduction is $10 per pay period.
Authorized Investment Providers for Virginia Western Community College: Ameriprise Financial, AXA Equitable, TIAA, and AIG/VALIC.
Required Forms: To initiate payroll deductions to a 403(b) account, an employee must complete a Salary Reduction Agreement (SRA). The SRA should be completed with the selected agent and returned to Human Resources for processing. There are other documents needed for initial enrollment, which should be completed between the employee and the vendor. If an employee is eligible for the cash match, a cash match agreement form must be completed and returned to Human Resources.
This notice should not be regarded as tax or legal advice. The college cannot provide tax or legal advice. Virginia Western Community College does not endorse, recommend or guarantee the 403(b) investments offered by the provider.
Please contact Human Resources if you have questions.