SUNY Voluntary 403(b) Plan Overview

Below are the important features about the SUNY Voluntary 403(b). This website is intended to be a summary of the plan provisions. In the event that a conflict exists between the information contained within this website and the plan document, the plan document provisions prevail. For complete information regarding the SUNY Voluntary 403(b) Plan, visit the SUNY Voluntary Savings Plan website.

Plan Overview

SUNY employees are eligible to participate in the Voluntary 403(b) Plan. The Plan provides a way for you to direct additional savings through payroll deduction. This account is 100% owned by you, with flexible investment options to allocate both your future contributions and existing account balances. You may transfer between variable investment options at any time subject to Voya’s policy on market timing and excessive trading.

The Plan provides an opportunity to save for retirement on a Traditional (pre-tax) and/or Roth (after-tax) basis. With the Traditional (pre-tax) option, all contributions plus any earnings accumulated are tax deferred. No income taxes are paid until you receive distributions from your account.1 Money invested in the Roth (after-tax) option is taxed when it is deducted from your paycheck and it provides the potential to withdraw earnings on a tax-free basis in retirement with a Qualified Distribution.2 You may split your Voluntary 403(b) Plan contributions between the Traditional (pre-tax) and Roth (after-tax) options, although the combination of any such contributions cannot exceed the annual maximum allowed by the IRS.

1 Withdrawals of Traditional (pre-tax) assets prior to age 59½ are subject to ordinary income tax and a 10% penalty may apply. This additional tax does not apply if you separated from service in the year you attain age 55 or if older, if you are receiving a lifetime income, or in cases of death, disability, or significant unreimbursed medical expenses.

2 Qualified Distributions of Roth earnings are distributed tax free no earlier than five years after contributions were first made. You must also meet at least one of the following criteria: age 59½ or older, distribution due to death, or permanently disability.

SUNY Voluntary 403(b) Plan Fees

An annualized asset-based service fee of 0.12% is deducted from your 403(b) Plan account on a monthly basis. This is the total fee for administrative and recordkeeping services and is only assessed on the variable investment options in your account. This asset-based service fee is listed as a dollar amount on your quarterly statement issued by Voya. Voya deducts all recordkeeping and administrative service fees each month from the available investment options and lists them as separate line items on quarterly statements. In addition, excess revenue generated by certain investment options in the Plan will be credited back to your account monthly and noted on your statement so you will know exactly what you are being charged for Voya’s services. Voya collects the same fees regardless of investments you select. Please refer to the Contract Prospectus Summary for individual fund fee information.

 

You should consider the investment objectives, risks, and charges and expenses of the variable product and its underlying fund options carefully before investing. The prospectuses/prospectus summaries containing this and other information can be obtained by contacting your local  representative. Please read the information carefully before investing.

Variable annuities are intended as long-term investments designed for retirement purposes. Withdrawals from an annuity may be subject to an early withdrawal fee and, if taken prior to age 59½, an IRS 10% premature distribution penalty tax will apply, unless an IRS exception applies. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than its original amount invested. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits.

For 403(b)(1) fixed or variable annuities, employee deferrals (including earnings) may generally be distributed only upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals made after 12/31/88. Exceptions to the distribution rules: No Internal Revenue Code withdrawal restrictions apply to ‘88 cash value (employee deferrals (including earnings) as of 12/31/88) and employer contributions (including earnings). However, employer contributions made to an annuity contract issued after December 31, 2008 may not be paid or made available before a distributable event occurs. Such amounts may be distributed to a participant or if applicable, the beneficiary: upon the participant’s severance from employment or upon the occurrence of an event, such as after a fixed number of years, the attainment of a stated age, or disability.