Supplemental Retirement Plans
Retirement planning experts maintain that most retirees
will need income from personal savings and investments to supplement their pensions and Social Security benefits.
As an MUSC employee, you can save additional money for retirement in our voluntary retirement plans. These plans are employee contributions only. MUSC offers taxed and tax-deferred retirement plans.
South Carolina Deferred Compensation Program offers four voluntary retirement plans:
1) Traditional 401(k): contributions are tax-deferred resulting in a lower taxable income, however distributions are taxed as income; minimum age for distribution is 59 1/2.
2) Roth 401(k): contributions are taxed, but savings and investment earnings are withdrawn tax-free if you are age 59 ½ and have held the account for at least five years.
3) Traditional 457: contributions are tax-deferred resulting in a lower taxable income, however distributions are taxed asincome; no minimum age for distribution, but must be separated from employment.
4) Roth 457: contributions are taxed, but savings and investment earnings are withdrawn tax-free once you separate employment adn the account has been open for at least five years.
In addition, MUSC offers Tax Sheltered 403(b) Annuity Plans through various vendors. These contributions are also tax-deferred, but will be taxed at distribution as income and the minimum age for distribution is 59 1/2. Contact the representatives to learn more about each company and their investments.
Plans are identified by and defined in numbered sections of the Internal Revenue Code. Withdrawals are permitted upon retirement, termination, minimum age restriction, disability, death, or approved hardship. Withdrawals before retirement may be subject to 20% mandatory withholding and 10% age penalty tax in addition to ordinary income tax. Loans are permitted if allowed by the company you choose for your plan. Check the contribution limits for each calendar year.
These plans can be started year round. To start a voluntary retirement plan, you will need to complete a contract/enrollment form with the company you choose and begin your contributions online. If you need assistance, please contact the Benefits staff at 792-2607 or firstname.lastname@example.org. Monthly paid employees must make their change by the 10th of the month for their contribution to be effective that month. Biweekly paid employee contribution changes will be effective the next available pay period after the change is received.