8.16 – Tax Sheltered Annuities

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Scope: NMSU System

Source: ARP Chapter 8 | HR-Benefits

Rule Administrator:

Last Updated: 06/20/2013

Related

Cross-Reference:

Revision History:

2017 Recompilation, formerly Rule 7.34
06/20/13 Amendment approved by Board of Regents
08/22/11 Amendment approved by Board of Regents

The university provides voluntary tax sheltered annuities. This program allows all employees to exclude a portion of their salary, within certain limits, from their current taxable income by electing to have their employer invest an amount in retirement annuities. No employer contributions are made to the plan. The program is in addition to the New Mexico Educational Retirement Account, the New Mexico Alternative Retirement Program and 457 contributions. Employees may choose from a list of approved companies that offer Tax Sheltered Annuity programs for the university. Employees may also choose within the approved company which accounts they would like their contributions to be distributed to. Employees may elect participation in the tax sheltered annuity plans at any time during the year. Contributions end when an employee terminates employment, retires, completes a Salary Reduction Agreement canceling contributions or when contributions have exceeded annual maximums established by the Internal Revenue Service.