A tax-deferred savings plan allows employees to save for their own retirement with pre-tax contributions. This program is sometimes referred to as the "Cash Match" plan because UVA will match 50% of what an eligible employee contributes up to a ceiling of $40 per month. The cash match ceiling for Medical Center employees hired after September 1 of 2002 is 2% of creditable compensation.

Because the tax deferred savings plan program is voluntary, employees can open an account at any time. UVA works with three vendors for this plan - TIAA-CREF, Fidelity and Vanguard. Employees must chose a vendor and submit two vendor enrollment forms - a 403(b) and a 401(a) - plus a Salary Reduction Agreement. The 403(b) enrollment form tells the vendor how to invest the money the employee is contributing. The 401(a) tells the vendor how to invest the UVA cash match.

long as you are actively employed in a benefited position at UVA, you cannot request a distribution from your tax deferred savings account. Once you leave University employment, you can request a distribution by contacting the vendor. If you elect to have the distribution paid directly to you, your distribution will be considered taxable income by the IRS. Individuals who are younger than age 59 and ? may also be assessed an additional 10% penalty for early withdrawal.

Funds from another qualified 403(b) annuity program, 401(K) or IRA may be transferred to the TRS program.

A You must first subtract the tax deferred amount before calculating the amount of taxes to be paid, and then add theta deferred amount back into the income before calculating the maximum amount of child support to be deducted. Child support must be satisfied before any deferment.

The term "tax-deferred" refers to payroll deductions which are not subject to federal or state taxes at the time of the deduction. Taxation of the income is delayed or "deferred" until the money is withdrawn from a retirement plan account at the time of retirement.

Delaware has no sales tax or intangible personal property tax. No Delaware income tax has to be paid and a business license is not required if the Corporation does not do business in Delaware. Go Back to the Top of the Page

Through the use of tax-deferred retirement accounts you can invest some of the money you would have otherwise paid in taxes to increase the amount of your retirement fund. Many employers offer plans where you can elect to defer a portion of your salary and contribute it to a tax-deferred retirement account. For most companies these are referred to as 401(k) plans. For many other employers, such as universities, a similar plan called a 403(b) is available.

If the rule described in answer two above is violated, a partially tax deferred exchange is the likely outcome. If the exchanger trades down in either fair market value or equity then some gain is likely to be recognized. If the exchange is otherwise valid, a partially deferred tax exchange is the result. (Also see answer to question 4, below.)

Internal Revenue Code Section 1031 allows taxpayers the opportunity to defer capital gains taxes owed upon the sale of investment or income property by exchanging the property for other like-kind property. The IRS states specific guidelines that must be followed and a Qualified Intermediary provides for a safe harbor exchange by assuring adherence to these guidelines.

This plan enables students to pay tuition and fees on an installment basis. Students must have a personal checking account or written authorization from the person authorizing RCCC to draft tuition/fee installments. Up to three checks are needed at the time of registration -- one for the initial payment and the rest are voided and used for further drafts.

long as the withdrawal is used to pay "qualified higher education expenses", it is exempt from federal income tax.

Most states allow residents to participate in the 529 plans and to receive a state income tax exemption for all "qualified withdrawals". Several states do not have an income tax, therefore they do not tax distributions from 529 plans. As a general rule, you should contact the program in your state to determine the specific state tax rules that apply to investing in a Section 529 state college savings plan.

If you have an asset used for business purposes (i.e. rental property, business vehicle, business equipment, etc.) which, when sold, will present you with a gain, you may be eligible for a §1031 tax-deferred exchange. It allows you to defer the gain by exchanging the asset to be sold for another like-kind asset. By doing so, you are able to defer recognition of the gain until you sell the new asset, as long as it is not exchanged also.