Supplemental Retirement Plans

The 403(b) plan is sponsored by the Arizona Board of Regents (ABOR).

• Review the 403(b) Enrollment Guide to learn more about the 403(b).
• Review a 403(b) vs 457(b) Plan Comparison. 

Eligibility: All university employees (full-time, part-time, hourly, or temporary) are eligible to participate in the 403(b) Plan.

Enrollment and changes:  You may start, stop or change your contribution amount at any time through Fidelity net benefits.  Learn how to enroll and change your contribution amount or investment elections.

Important! 403b deductions are set up on the primary job listed in the payroll system. If you would like to have your 403b contribution set up on multiple positions please contact NAUHRBenefits@nau.edu for assistance. 

Contributions: You can contribute a minimum of $5 per pay period, up to the annual IRS dollar limit on a pretax and/or after-tax basis. NAU does not match your contributions.  Contributions to the Plan can be deducted on a pretax basis from your paycheck and/or on an after-tax basis [Roth 403(b)].

• Pre-taxed contributions are deducted from your pay before income taxes are taken out. This means that you may actually lower the amount of current income taxes withheld each period. Any earnings on your contributions are tax deferred until you withdraw them from your account.
• After-tax [Roth 403(b)] contributions are subject to taxes when deducted. You can withdraw those contributions tax free (subject to the terms of the Plan). Your earnings may also be withdrawn tax free if you have a qualified distribution. You may want to consider consulting your tax expert to determine if the pretax or Roth after-tax option is right for you.

Contribution Limits: You can contribute up to the IRS annual maximum each calendar year to each plan. For 2022 the contribution maximum is $20,500. If you are age 50 or older you can make additional catch-up contributions. For 2022 the catch- up contribution limit is $6,500 with an annual maximum of $27,000.

Investments: Your contributions can be invested with either Fidelity or TIAA, both of which offer a wide menu of funds with different investment strategies.

Loans: Typically, you can borrow between $1,000 and $50,000. The amount you can borrow depends on your account balance available for loans.

• You may only have 1 general loan and 1 home loan at a time at a time
• Loans may only be taken from your accounts with the plan’s active investment managers Fidelity and TIAA

Distributions: Distributions are generally allowed when you terminate employment, reach age 59½, retire, if you have severe financial ‘Hardship’ as defined by the Plan, or upon your death. Pretax contributions and associated earnings are subject to income taxes when withdrawn. Distributions taken before age 59 1/2 are subject to a tax penalty.