Tax-deferred annuities authorized by Section 403(b) and 457(b) of the Internal Revenue Code are retirement savings programs that allow employees to set aside a portion of their pre-tax income. A tax-deferred annuity is a professional approach to financial planning offering several advantages:
To establish a tax-deferred voluntary retirement savings plan, you must enroll at Fidelity Online. Your paycheck will be reduced by the amount you designate.
You may stop or change your enrollment and contribution amounts at any time at Fidelity Online. Actions made to a 403(b) plan by the 3rd of a month will be applied to your next paycheck. Actions made to a 457(b) plan by the 3rd of the month will be applied to your paycheck in the next month.
If your employment terminates, you may take a lump-sum distribution. However, the distribution would be calculated as income for that year, taxed as income and in the case of a 403(b) account, a 10 percent penalty for early withdrawal applies. You may continue contributing if your new employer participates. You may leave your present contract in place (some restrictions may apply). You may transfer your present contract to a new company.
There are a number of payout options to choose from at retirement. You may also choose a lump sum distribution. The IRS requires that participants begin receiving retirement benefits from a tax-deferred annuity no later than April 1 of the year following the calendar year in which you reach age 72 (73 if you reach age 72 after Dec. 31, 2025). You can begin receiving benefits as early as age 59 1/2 without any penalties. A 403(b) or 457(b) tax deferred annuity allows you to supplement other retirement plan benefits.
You can choose a Roth 403(b) or Roth 457(b) plan in the Voluntary Retirement Savings Plans. In a Roth plan, you make after-tax contributions during your career and use the money tax-free in retirement. The same rules apply as described above for 403(b) and 457(b) Voluntary Retirement Savings Plans. Your contributions to a regular plan and a Roth plan are cumulative and together must not exceed the annual contribution limits described above for 403(b) and 457(b) plans. You should consider whether a Voluntary Retirement Savings Plan is right for you. Get more information from a Fidelity representative or enroll in a Roth option.
The Economic Growth and Tax Relief Reconciliation Act of 2001 has substantially simplified 403(b) and 457(b) compliance. Participants may enroll once and their contribution will carry over from year to year, eliminating the need to complete a new enrollment each calendar year. Under the law, 403(b) and 457(b) participants are able to contribute 100 percent of compensation up to the annual deferral limit of $24,500 for 2026.
An employee may take advantage of both accounts, so that the 2025 calendar combined maximum, for example, would be $49,000. Two opportunities to contribute in addition to the deferral limit are available to participants:
Less than 20% of OU’s employees have protected their retirement savings by choosing a beneficiary in Fidelity NetBenefits online. Have you? Neglecting a beneficiary designation could have significant consequences for the people important to you. Here’s what you need to know.
If you don't have a beneficiary named in each of your retirement plans, your estate will automatically inherit your savings. If this happens, the courts are sometimes involved and your assets may not go to the people you would have intended. This could delay or prevent the distribution of your savings to the people you care about.
Your beneficiary will receive the value of your retirement savings in the case of your death.
Make your beneficiary wishes known:
Need help? Call Fidelity customer service at 1.800.343.0860.
All Campuses
Take control of your retirement by speaking with a representative at Fidelity.
Norman Campus
Meet with your Norman HR Retirement Representative.
OU Health Campus
Meet with your OUHC HR Retirement Representative.
TIAA Enrollees
If you had previous investment accounts with TIAA, you can schedule an appointment to meet with a TIAA representative at a nearby TIAA location. Book an appointment or call them at 1-800-842-2252.
