Yet Another University of California retirement savings thread

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Yet Another University of California retirement savings thread

Post by Clever_Username » Mon Jul 01, 2019 5:11 pm

I have been reading a lot of the UC threads on this site recently; this is because I will be taking a job with UC for the upcoming school year and beyond.

I'm trying to figure out: are there gotchas I should be aware of? The savings choice 403(b) looks great, at least as good as the 403(b) I had at my previous employer (a private school) and I'm now eligible for a 457 and the system seems to allow mega-backdoor Roth (not sure when I'll be able to do that).

I seem to get the impression there are several UC employees on this board: anything else I should be aware of, either positive or negative? I know that's fairly vague, but it's been years since I have evaluated job benefits and this particular system seems on this board, I'm just looking to check that my bases are covered.

Thanks in advance for any suggestions.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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Re: Yet Another University of California retirement savings thread

Post by pkcrafter » Tue Jul 02, 2019 8:44 am

Here is a link to UC compensation and benefits in case you have not seen it.

https://ucnet.universityofcalifornia.ed ... index.html

Funds

https://myucretirement.com/UCRetirement ... UCFundMenu

Looks very good


Paul
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Re: Yet Another University of California retirement savings thread

Post by Clever_Username » Wed Jul 03, 2019 11:21 pm

Awesome, thank you.
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Re: Yet Another University of California retirement savings thread

Post by johnra » Thu Jul 04, 2019 1:13 am

The after-tax DCP plan is nice way to accumulate in Roth space. Realizing that most of my savings are in tax deferred accounts, about 5 years ago I started contributing to this each month and rolling over to my Roth. I wish I had done this earlier.

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Re: Yet Another University of California retirement savings thread

Post by Thesaints » Thu Jul 04, 2019 2:00 am

johnra wrote:
Thu Jul 04, 2019 1:13 am
The after-tax DCP plan is nice way to accumulate in Roth space.
How does it work ? You contribute to the DCP and rollover to a Roth held elsewhere ? What are the limits to DCP contributions, if one already maxes out 403 and 457 ?

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Re: Yet Another University of California retirement savings thread

Post by HEDGEFUNDIE » Thu Jul 04, 2019 3:08 am

johnra wrote:
Thu Jul 04, 2019 1:13 am
The after-tax DCP plan is nice way to accumulate in Roth space. Realizing that most of my savings are in tax deferred accounts, about 5 years ago I started contributing to this each month and rolling over to my Roth. I wish I had done this earlier.
How much are you allowed to contribute to the after-tax plan? Do 403 and 457 contributions figure into the limit? How about the “6% employer contribution to unfunded pension liability”, does that figure into the limit as well?

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Re: Yet Another University of California retirement savings thread

Post by johnra » Thu Jul 04, 2019 8:49 am

HEDGEFUNDIE wrote:
Thu Jul 04, 2019 3:08 am
johnra wrote:
Thu Jul 04, 2019 1:13 am
The after-tax DCP plan is nice way to accumulate in Roth space. Realizing that most of my savings are in tax deferred accounts, about 5 years ago I started contributing to this each month and rolling over to my Roth. I wish I had done this earlier.
How much are you allowed to contribute to the after-tax plan? Do 403 and 457 contributions figure into the limit? How about the “6% employer contribution to unfunded pension liability”, does that figure into the limit as well?

As I understand it, the limit for all contributions (except the matching employer funds) is 55K. I now only contribute to the DCP, and stopped contributing toe the 403B or 457B. I subtract from the 55K limit the amount that is coming out of my salary to the UCRP. The money goes into the savings at the DCP and I have to call by phone for the rollover to my Roth. There is no point in letting it stay in the DCP since gains are taxed, so it isas a vehicle to contribute to the Roth.

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Re: Yet Another University of California retirement savings thread

Post by Thesaints » Thu Jul 04, 2019 1:51 pm

johnra wrote:
Thu Jul 04, 2019 8:49 am
As I understand it, the limit for all contributions (except the matching employer funds) is 55K. I now only contribute to the DCP, and stopped contributing toe the 403B or 457B. I subtract from the 55K limit the amount that is coming out of my salary to the UCRP.
that seems a little odd. Max total contribution to 403 and 457 is 38k. 55 - 38 = 17. There certainly are employees who pay more than 17k to the UCRP. Does it mean they cannot max out 403b and 457b ?
Is the 55k limit adjusted upwards above age 50 ?

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Re: Yet Another University of California retirement savings thread

Post by johnra » Thu Jul 04, 2019 4:10 pm

Thesaints wrote:
Thu Jul 04, 2019 1:51 pm
johnra wrote:
Thu Jul 04, 2019 8:49 am
As I understand it, the limit for all contributions (except the matching employer funds) is 55K. I now only contribute to the DCP, and stopped contributing toe the 403B or 457B. I subtract from the 55K limit the amount that is coming out of my salary to the UCRP.
that seems a little odd. Max total contribution to 403 and 457 is 38k. 55 - 38 = 17. There certainly are employees who pay more than 17k to the UCRP. Does it mean they cannot max out 403b and 457b ?
Is the 55k limit adjusted upwards above age 50 ?
see https://personal.vanguard.com/us/insigh ... ion-limits


also, see the DCP Plan brochure, for example:

"...The maximum amount participants may contribute annually to
the After-Tax Account is determined by the IRC §415(c) limit.
Generally, this amount is the lesser of:
• 100 percent of the participant’s adjusted gross
UC salary, or
• $51,000 (in 2013).
This limit applies to all annual additions as defined in IRC §415(c)...."

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Re: Yet Another University of California retirement savings thread

Post by Thesaints » Thu Jul 04, 2019 4:56 pm

Thank you.
So "Maximum annual additions limit under defined contribution plan", only refers to DCP contributions, taking into account mandatory UCRP contributions. 403b and 457b have their own limits.
Is it that correct ?

What would be the mechanics of rolling over a DCP contribution (after-tax) to an existing Vanguard Roth IRA ? Call UC ? Fill a roll over form at Vanguard and they will take care of that ?
There would be no corresponding Form 8606 to file, right ?

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Re: Yet Another University of California retirement savings thread

Post by johnra » Thu Jul 04, 2019 5:41 pm

I have assumed the 415(c) limit includes ALL retirement -- including 403(b), UCRP and DCP. There are previous posts that indicate that 457(b) can be saved in addition to the 415(c) limit--see for example:
viewtopic.php?t=68443
or
http://www.bogleheads.org/forum/viewtop ... 0&t=127903 “The 415c limit for 2014 is a total of $52,000 ($57,500 if age 50 or older), which is the total combined contributions to the 403b ($17,500 max or $23,000 if age 50 or older) and 401a.
“The 457b is separate with a limit for elective deferrals of $17,500 ($23,000 if age 50 or older).
“So total between the 3 is $69,500 ($80,500 if age 50 or older).

A few years ago when I researched this,, I seemed to know about this than the UC and the Fidelity Reps did. I don't have that much excess, and have opted to keep it simple.

In terms of the mechanics of rollover: both my DCP and Roth are at Fidelity. Every month, I merely call the UC Fidelity number ((800) 557-1900‬) and tell them to rollover. My contributions to the DCP from my paycheck go directly into a savings account, so only pennies of interest growth before the rollover, and the rollover goes to the core account in the Roth, and then I invest (mainly into the iShares total market ETF (ITOT)--. There is an annual fee for the DCP (around $30 I think).

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Re: Yet Another University of California retirement savings thread

Post by Thesaints » Thu Jul 04, 2019 5:48 pm

Thanks again

Do you have to report it on your 8606, or not being a non-deductible contribution to an IRA excludes it ?
Last edited by Thesaints on Thu Jul 04, 2019 6:07 pm, edited 1 time in total.

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Re: Yet Another University of California retirement savings thread

Post by johnra » Thu Jul 04, 2019 5:52 pm

Not sure, I bring whatever forms I get from Fidelity to a guy who does my taxes, but not sure what he does with them. There is around $1 or $2 of taxable gains per year the way I am doing this.

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Re: Yet Another University of California retirement savings thread

Post by juro » Fri Jan 03, 2020 8:26 pm

I know this thread is a few months old but UC now has a great website which describes how to do the after-tax DCP contribution rollovers to a Roth IRA (https://myucretirement.com/Resource/278). If you scroll down to the "Learn More" section, there is a PDF and videos on the process.
As mentioned, if your Roth IRA is at Fidelity, you just need to call them and they can handle it entirely over the phone. If you have it somewhere else, they will need to mail you the check made out to the other organization. One tip is that if you have any gains, you have the option to have them roll that into your 403(b). Just be sure to specifically ask for that as one Fidelity rep mentioned it adds some additional processing or paperwork on their end so I don't think it's the default option.

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Re: Yet Another University of California retirement savings thread

Post by Sandi_k » Fri Jan 03, 2020 8:46 pm

juro wrote:
Fri Jan 03, 2020 8:26 pm
I know this thread is a few months old but UC now has a great website which describes how to do the after-tax DCP contribution rollovers to a Roth IRA (https://myucretirement.com/Resource/278). If you scroll down to the "Learn More" section, there is a PDF and videos on the process.
As mentioned, if your Roth IRA is at Fidelity, you just need to call them and they can handle it entirely over the phone.
So I'm a long-time UC employee, and have never moved my DCP funds. So it's a hot mess mix of contributions and growth, and I've never parsed which is which.

If I wanted to move it to a Roth account, what sort of historical reporting would I need? Do I need to define the contributions vs. growth? Or is it all considered Roth-rollover eligible?

TIA.

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Re: Yet Another University of California retirement savings thread

Post by Clever_Username » Fri Jan 03, 2020 10:25 pm

juro wrote:
Fri Jan 03, 2020 8:26 pm
I know this thread is a few months old but UC now has a great website which describes how to do the after-tax DCP contribution rollovers to a Roth IRA (https://myucretirement.com/Resource/278). If you scroll down to the "Learn More" section, there is a PDF and videos on the process.
As mentioned, if your Roth IRA is at Fidelity, you just need to call them and they can handle it entirely over the phone. If you have it somewhere else, they will need to mail you the check made out to the other organization. One tip is that if you have any gains, you have the option to have them roll that into your 403(b). Just be sure to specifically ask for that as one Fidelity rep mentioned it adds some additional processing or paperwork on their end so I don't think it's the default option.
Let me see if I understand this correctly.

I can, in addition to maxing out my 403(b) and 457, make post-tax contributions to the DCP. I can then roll that immediately into a Roth IRA.

If I have any gains on the post-tax contribution that can be rolled into my 403(b), which preserves the tax treatment.

Or does the amount of money in my DCP currently have to be rolled also? That wouldn't bother me at all, I would just need to know.

This actually solves a problem I'm going to face in 2020 about asset allocation across accounts (and across tax treatments).

I will try this, although it might not be until end-of-July paycheck.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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Re: Yet Another University of California retirement savings thread

Post by juro » Wed Jun 24, 2020 3:34 pm

Sandi_k wrote:
Fri Jan 03, 2020 8:46 pm
juro wrote:
Fri Jan 03, 2020 8:26 pm
I know this thread is a few months old but UC now has a great website which describes how to do the after-tax DCP contribution rollovers to a Roth IRA (https://myucretirement.com/Resource/278). If you scroll down to the "Learn More" section, there is a PDF and videos on the process.
As mentioned, if your Roth IRA is at Fidelity, you just need to call them and they can handle it entirely over the phone.
So I'm a long-time UC employee, and have never moved my DCP funds. So it's a hot mess mix of contributions and growth, and I've never parsed which is which.

If I wanted to move it to a Roth account, what sort of historical reporting would I need? Do I need to define the contributions vs. growth? Or is it all considered Roth-rollover eligible?

TIA.
When you sign into NetBenefits, click on DCP and find the "Sources" pie chart. Click "Show Details" and you can see your after-tax contributions amount. I have not left any gains there so I can't recall if it shows a separate line for the gains. But I would imagine they must track it as well. If you wanted to rollover the gains, I assume you can do that as well but it would need

I have a mix of DCP Safe Harbor and DCP Pretax from when I was a student and a few years around 2010 when UC contributed to the DCP for those in the 1976 tier. These funds cannot be rollover to the Roth IRA, only the after-tax contributions.

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Re: Yet Another University of California retirement savings thread

Post by juro » Wed Jun 24, 2020 3:56 pm

Clever_Username wrote:
Fri Jan 03, 2020 10:25 pm
juro wrote:
Fri Jan 03, 2020 8:26 pm
I know this thread is a few months old but UC now has a great website which describes how to do the after-tax DCP contribution rollovers to a Roth IRA (https://myucretirement.com/Resource/278). If you scroll down to the "Learn More" section, there is a PDF and videos on the process.
As mentioned, if your Roth IRA is at Fidelity, you just need to call them and they can handle it entirely over the phone. If you have it somewhere else, they will need to mail you the check made out to the other organization. One tip is that if you have any gains, you have the option to have them roll that into your 403(b). Just be sure to specifically ask for that as one Fidelity rep mentioned it adds some additional processing or paperwork on their end so I don't think it's the default option.
Let me see if I understand this correctly.

I can, in addition to maxing out my 403(b) and 457, make post-tax contributions to the DCP. I can then roll that immediately into a Roth IRA.

If I have any gains on the post-tax contribution that can be rolled into my 403(b), which preserves the tax treatment.

Or does the amount of money in my DCP currently have to be rolled also? That wouldn't bother me at all, I would just need to know.

This actually solves a problem I'm going to face in 2020 about asset allocation across accounts (and across tax treatments).

I will try this, although it might not be until end-of-July paycheck.
Yes, any gains on the post-tax contributions can actually be rolled into the 403(b), 457(b) or a Traditional IRA. But you have to be very explicit with the Fidelity rep that you want the gains rolled to your 403(b) or 457(b) as it is an additional step on their end to make sure that happens. I do the rollover monthly on payday so do not typically have gains.

One nuance I have not received a solid response to from Fidelity though relates to using the UC Savings Fund. The first month I did this, I had the funds go to the UC Savings Fund. I called the day the amount posted and had it rolled over. The rep confirmed the amount available to rollover was exactly what was taken out of my check. But when it was actually rolled over, it rolled with an additional $0.05 due to a related dividend payment on the UC Savings Funds. So if you use this fund and roll it over before the dividends post at the end of the month, please note you are likely to end up with having to track pre-tax converted cents. The reps apparently can't see what this amount would on their end. I ended up just changing my investment selection as this is the only fund that posts dividends among the UC choices.

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Re: Yet Another University of California retirement savings thread

Post by Clever_Username » Wed Jun 24, 2020 4:39 pm

juro wrote:
Wed Jun 24, 2020 3:56 pm
Clever_Username wrote:
Fri Jan 03, 2020 10:25 pm
juro wrote:
Fri Jan 03, 2020 8:26 pm
I know this thread is a few months old but UC now has a great website which describes how to do the after-tax DCP contribution rollovers to a Roth IRA (https://myucretirement.com/Resource/278). If you scroll down to the "Learn More" section, there is a PDF and videos on the process.
As mentioned, if your Roth IRA is at Fidelity, you just need to call them and they can handle it entirely over the phone. If you have it somewhere else, they will need to mail you the check made out to the other organization. One tip is that if you have any gains, you have the option to have them roll that into your 403(b). Just be sure to specifically ask for that as one Fidelity rep mentioned it adds some additional processing or paperwork on their end so I don't think it's the default option.
Let me see if I understand this correctly.

I can, in addition to maxing out my 403(b) and 457, make post-tax contributions to the DCP. I can then roll that immediately into a Roth IRA.

If I have any gains on the post-tax contribution that can be rolled into my 403(b), which preserves the tax treatment.

Or does the amount of money in my DCP currently have to be rolled also? That wouldn't bother me at all, I would just need to know.

This actually solves a problem I'm going to face in 2020 about asset allocation across accounts (and across tax treatments).

I will try this, although it might not be until end-of-July paycheck.
Yes, any gains on the post-tax contributions can actually be rolled into the 403(b), 457(b) or a Traditional IRA. But you have to be very explicit with the Fidelity rep that you want the gains rolled to your 403(b) or 457(b) as it is an additional step on their end to make sure that happens. I do the rollover monthly on payday so do not typically have gains.

One nuance I have not received a solid response to from Fidelity though relates to using the UC Savings Fund. The first month I did this, I had the funds go to the UC Savings Fund. I called the day the amount posted and had it rolled over. The rep confirmed the amount available to rollover was exactly what was taken out of my check. But when it was actually rolled over, it rolled with an additional $0.05 due to a related dividend payment on the UC Savings Funds. So if you use this fund and roll it over before the dividends post at the end of the month, please note you are likely to end up with having to track pre-tax converted cents. The reps apparently can't see what this amount would on their end. I ended up just changing my investment selection as this is the only fund that posts dividends among the UC choices.
Thank you. I will be explicit. The paycheck we're getting in about five weeks will be my first with post-tax DCP contribution. I'll be explicit to roll any gains to the 403(b).

I'm not sure what's going on in your second paragraph. What are you referencing? There was an extra few cents because you picked a fund that distributes -- which are you using now to avoid that?
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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Re: Yet Another University of California retirement savings thread

Post by juro » Thu Jul 23, 2020 12:00 pm

Clever_Username wrote:
Wed Jun 24, 2020 4:39 pm
juro wrote:
Wed Jun 24, 2020 3:56 pm
Clever_Username wrote:
Fri Jan 03, 2020 10:25 pm
juro wrote:
Fri Jan 03, 2020 8:26 pm
I know this thread is a few months old but UC now has a great website which describes how to do the after-tax DCP contribution rollovers to a Roth IRA (https://myucretirement.com/Resource/278). If you scroll down to the "Learn More" section, there is a PDF and videos on the process.
As mentioned, if your Roth IRA is at Fidelity, you just need to call them and they can handle it entirely over the phone. If you have it somewhere else, they will need to mail you the check made out to the other organization. One tip is that if you have any gains, you have the option to have them roll that into your 403(b). Just be sure to specifically ask for that as one Fidelity rep mentioned it adds some additional processing or paperwork on their end so I don't think it's the default option.
Let me see if I understand this correctly.

I can, in addition to maxing out my 403(b) and 457, make post-tax contributions to the DCP. I can then roll that immediately into a Roth IRA.

If I have any gains on the post-tax contribution that can be rolled into my 403(b), which preserves the tax treatment.

Or does the amount of money in my DCP currently have to be rolled also? That wouldn't bother me at all, I would just need to know.

This actually solves a problem I'm going to face in 2020 about asset allocation across accounts (and across tax treatments).

I will try this, although it might not be until end-of-July paycheck.
Yes, any gains on the post-tax contributions can actually be rolled into the 403(b), 457(b) or a Traditional IRA. But you have to be very explicit with the Fidelity rep that you want the gains rolled to your 403(b) or 457(b) as it is an additional step on their end to make sure that happens. I do the rollover monthly on payday so do not typically have gains.

One nuance I have not received a solid response to from Fidelity though relates to using the UC Savings Fund. The first month I did this, I had the funds go to the UC Savings Fund. I called the day the amount posted and had it rolled over. The rep confirmed the amount available to rollover was exactly what was taken out of my check. But when it was actually rolled over, it rolled with an additional $0.05 due to a related dividend payment on the UC Savings Funds. So if you use this fund and roll it over before the dividends post at the end of the month, please note you are likely to end up with having to track pre-tax converted cents. The reps apparently can't see what this amount would on their end. I ended up just changing my investment selection as this is the only fund that posts dividends among the UC choices.
Thank you. I will be explicit. The paycheck we're getting in about five weeks will be my first with post-tax DCP contribution. I'll be explicit to roll any gains to the 403(b).

I'm not sure what's going on in your second paragraph. What are you referencing? There was an extra few cents because you picked a fund that distributes -- which are you using now to avoid that?
Yes, if you choose the UC Savings funds, it will pay a dividend. They won't post the dividend until you process the rollover or at the end of the month, whichever occurs first. So if you are paid on the 1st and process the rollover on the 7th, there may be a few cents of dividends that will roll with your after-tax contribution. They are not able to roll that into the 403(b)/457 as apparently the Fidelity reps don't see it on their end until after the transaction occurs. If you choose essentially any other option than UC Savings Funds, this should not happen.

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Re: Yet Another University of California retirement savings thread

Post by Clever_Username » Thu Jul 23, 2020 12:13 pm

juro wrote:
Thu Jul 23, 2020 12:00 pm
Clever_Username wrote:
Wed Jun 24, 2020 4:39 pm
juro wrote:
Wed Jun 24, 2020 3:56 pm
Clever_Username wrote:
Fri Jan 03, 2020 10:25 pm
juro wrote:
Fri Jan 03, 2020 8:26 pm
I know this thread is a few months old but UC now has a great website which describes how to do the after-tax DCP contribution rollovers to a Roth IRA (https://myucretirement.com/Resource/278). If you scroll down to the "Learn More" section, there is a PDF and videos on the process.
As mentioned, if your Roth IRA is at Fidelity, you just need to call them and they can handle it entirely over the phone. If you have it somewhere else, they will need to mail you the check made out to the other organization. One tip is that if you have any gains, you have the option to have them roll that into your 403(b). Just be sure to specifically ask for that as one Fidelity rep mentioned it adds some additional processing or paperwork on their end so I don't think it's the default option.
Let me see if I understand this correctly.

I can, in addition to maxing out my 403(b) and 457, make post-tax contributions to the DCP. I can then roll that immediately into a Roth IRA.

If I have any gains on the post-tax contribution that can be rolled into my 403(b), which preserves the tax treatment.

Or does the amount of money in my DCP currently have to be rolled also? That wouldn't bother me at all, I would just need to know.

This actually solves a problem I'm going to face in 2020 about asset allocation across accounts (and across tax treatments).

I will try this, although it might not be until end-of-July paycheck.
Yes, any gains on the post-tax contributions can actually be rolled into the 403(b), 457(b) or a Traditional IRA. But you have to be very explicit with the Fidelity rep that you want the gains rolled to your 403(b) or 457(b) as it is an additional step on their end to make sure that happens. I do the rollover monthly on payday so do not typically have gains.

One nuance I have not received a solid response to from Fidelity though relates to using the UC Savings Fund. The first month I did this, I had the funds go to the UC Savings Fund. I called the day the amount posted and had it rolled over. The rep confirmed the amount available to rollover was exactly what was taken out of my check. But when it was actually rolled over, it rolled with an additional $0.05 due to a related dividend payment on the UC Savings Funds. So if you use this fund and roll it over before the dividends post at the end of the month, please note you are likely to end up with having to track pre-tax converted cents. The reps apparently can't see what this amount would on their end. I ended up just changing my investment selection as this is the only fund that posts dividends among the UC choices.
Thank you. I will be explicit. The paycheck we're getting in about five weeks will be my first with post-tax DCP contribution. I'll be explicit to roll any gains to the 403(b).

I'm not sure what's going on in your second paragraph. What are you referencing? There was an extra few cents because you picked a fund that distributes -- which are you using now to avoid that?
Yes, if you choose the UC Savings funds, it will pay a dividend. They won't post the dividend until you process the rollover or at the end of the month, whichever occurs first. So if you are paid on the 1st and process the rollover on the 7th, there may be a few cents of dividends that will roll with your after-tax contribution. They are not able to roll that into the 403(b)/457 as apparently the Fidelity reps don't see it on their end until after the transaction occurs. If you choose essentially any other option than UC Savings Funds, this should not happen.
Thank you. I just confirmed that it isn't in the Savings fund.

Now I need to remember if I am supposed to set up an empty Roth IRA at Fidelity before doing this. I plan to leave the money at Fidelity, at least in the short term, as I am told it makes the rollover easier.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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Re: Yet Another University of California retirement savings thread

Post by juro » Thu Jul 23, 2020 1:58 pm

Yes, you will need to set it up before you request the rollover as they will ask you to confirm the Roth account number you want to roll it into. Luckily, it's a quick process online since they have much of your information from UC. And the process is much easier using a Fidelity Roth IRA. My understanding is if you used another brokerage firm, they would have to mail you a check so you could deposit it with that firm vs. the 5 min phone call with the Fidelity Roth IRA.

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Re: Yet Another University of California retirement savings thread

Post by Clever_Username » Mon Jul 27, 2020 11:13 am

juro wrote:
Thu Jul 23, 2020 1:58 pm
Yes, you will need to set it up before you request the rollover as they will ask you to confirm the Roth account number you want to roll it into. Luckily, it's a quick process online since they have much of your information from UC. And the process is much easier using a Fidelity Roth IRA. My understanding is if you used another brokerage firm, they would have to mail you a check so you could deposit it with that firm vs. the 5 min phone call with the Fidelity Roth IRA.
Okay, this is a little embarrassing : I'm having trouble setting up the Roth IRA at Fidelity. Friday's paycheck will be my first MBR and I want to be ready.

When I log into Fidelity, I keep being returned to the UC system page.

Nevermind, ignore me. In case anyone comes across this later and has the same problem, after logging in, instead of trying to click around, I went back to fidelity.com in the same tab and was able to set up the Roth IRA there.
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Re: Yet Another University of California retirement savings thread

Post by Clever_Username » Fri Jul 31, 2020 9:51 am

johnra wrote:
Thu Jul 04, 2019 1:13 am
The after-tax DCP plan is nice way to accumulate in Roth space. Realizing that most of my savings are in tax deferred accounts, about 5 years ago I started contributing to this each month and rolling over to my Roth. I wish I had done this earlier.
I evidently didn't do this correctly; for the paycheck that hit today, I asked to contribute post-tax to DCP. I had it set in Fidelity Netbenefits -- and the paycheck hit my bank account. :-( I didn't need the cash and I was trying to expand my Roth space.

What's the mechanism to contribute, and who do I have to talk to to make it happen? I'm guessing the money from today's paycheck can't be withdrawn and then contributed.
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Re: Yet Another University of California retirement savings thread

Post by Monsterflockster » Fri Jul 31, 2020 10:12 am

Man... what happened? Your first post was iver a year ago. 😂

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Re: Yet Another University of California retirement savings thread

Post by Clever_Username » Fri Jul 31, 2020 10:30 am

Monsterflockster wrote:
Fri Jul 31, 2020 10:12 am
Man... what happened? Your first post was iver a year ago. 😂
I wasn't able to do the MBR portions in 2019 -- I maxed out the 403 and 457 but that consumed what I could contribute. Then in 2020 I maxed out those two over my first six paychecks, figuring I'd start doing the MBR with the July 31 / Aug 1 paycheck. Turns out I guess I'm waiting until at least the Sep 1 paycheck to start the MBR. :-(
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Re: Yet Another University of California retirement savings thread

Post by sschullo » Fri Jul 31, 2020 10:37 am

The UC 403(b) system is the holy grail of how the 403(b) can be a great plan. We in the public k12 districts in California are nowhere near the 403(b) perfection that the UC employees have enjoyed for decades. The K12 and higher education cultures are vastly different. You cannot imagine how terrible 403(b) plans are in the public K12 system here in California, with no end in sight!
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Re: Yet Another University of California retirement savings thread

Post by Monsterflockster » Fri Jul 31, 2020 3:25 pm

sschullo wrote:
Fri Jul 31, 2020 10:37 am
The UC 403(b) system is the holy grail of how the 403(b) can be a great plan. We in the public k12 districts in California are nowhere near the 403(b) perfection that the UC employees have enjoyed for decades. The K12 and higher education cultures are vastly different. You cannot imagine how terrible 403(b) plans are in the public K12 system here in California, with no end in sight!
It’s not that bad everywhere in CA. We have vanguard with lower fees than if you were to go with them directly. We don’t get a match but we do get a nice pension.

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Re: Yet Another University of California retirement savings thread

Post by johnra » Sat Aug 01, 2020 4:42 pm

Clever_Username wrote:
Fri Jul 31, 2020 9:51 am
johnra wrote:
Thu Jul 04, 2019 1:13 am
The after-tax DCP plan is nice way to accumulate in Roth space. Realizing that most of my savings are in tax deferred accounts, about 5 years ago I started contributing to this each month and rolling over to my Roth. I wish I had done this earlier.
I evidently didn't do this correctly; for the paycheck that hit today, I asked to contribute post-tax to DCP. I had it set in Fidelity Netbenefits -- and the paycheck hit my bank account. :-( I didn't need the cash and I was trying to expand my Roth space.

What's the mechanism to contribute, and who do I have to talk to to make it happen? I'm guessing the money from today's paycheck can't be withdrawn and then contributed.
Getting contribution into the after tax DCP might involve a push from UC to Fidelity rather than a pull by Fidelity from UC. Also, it takes at least a few days from the time you enter until it is in the system, so it won't work last minute. Be sure that if you maxed out your pre-tax contributios that you still can contribute post-tax--I could never get clarity about that, but seems there is one overall limit.

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Re: Yet Another University of California retirement savings thread

Post by juro » Sat Aug 01, 2020 5:11 pm

Clever_Username wrote:
Fri Jul 31, 2020 10:30 am
Monsterflockster wrote:
Fri Jul 31, 2020 10:12 am
Man... what happened? Your first post was iver a year ago. 😂
I wasn't able to do the MBR portions in 2019 -- I maxed out the 403 and 457 but that consumed what I could contribute. Then in 2020 I maxed out those two over my first six paychecks, figuring I'd start doing the MBR with the July 31 / Aug 1 paycheck. Turns out I guess I'm waiting until at least the Sep 1 paycheck to start the MBR. :-(
You might not have made the cutoff for the month if you made this change in NetBenefits late in the month. I know when I’ve made a change to the amount in the first week of the month, it will definitely show up in the next paycheck but if you were mid-late in month it might not show up until the following pay period. Also, one tip, rather than calling the regular toll free number UC has listed on the myUCretirement website, call this one instead as it saves a step of Fidelity having to transfer you to the UC specific desk - (800) 248-4213 .

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Re: Yet Another University of California retirement savings thread

Post by juro » Sat Aug 01, 2020 5:26 pm

johnra wrote:
Sat Aug 01, 2020 4:42 pm
Clever_Username wrote:
Fri Jul 31, 2020 9:51 am
johnra wrote:
Thu Jul 04, 2019 1:13 am
The after-tax DCP plan is nice way to accumulate in Roth space. Realizing that most of my savings are in tax deferred accounts, about 5 years ago I started contributing to this each month and rolling over to my Roth. I wish I had done this earlier.
I evidently didn't do this correctly; for the paycheck that hit today, I asked to contribute post-tax to DCP. I had it set in Fidelity Netbenefits -- and the paycheck hit my bank account. :-( I didn't need the cash and I was trying to expand my Roth space.

What's the mechanism to contribute, and who do I have to talk to to make it happen? I'm guessing the money from today's paycheck can't be withdrawn and then contributed.
Getting contribution into the after tax DCP might involve a push from UC to Fidelity rather than a pull by Fidelity from UC. Also, it takes at least a few days from the time you enter until it is in the system, so it won't work last minute. Be sure that if you maxed out your pre-tax contributios that you still can contribute post-tax--I could never get clarity about that, but seems there is one overall limit.
I always call our plan a unicorn. The 401a has its own separate $57k limit from the 403b and 457b. If he’s in the 1976 tier, he can use the the full $57k for the MBR. If he is in the Savings Choice (rather than the pension plan), it may be reduced by the UC matching contributions. I am in there earlier tier so not entirely sure of this but Fidelity will be able to confirm it, as they confirmed I had access to use the full $57k.

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Re: Yet Another University of California retirement savings thread

Post by Clever_Username » Sat Aug 01, 2020 8:45 pm

johnra wrote:
Sat Aug 01, 2020 4:42 pm
Clever_Username wrote:
Fri Jul 31, 2020 9:51 am
johnra wrote:
Thu Jul 04, 2019 1:13 am
The after-tax DCP plan is nice way to accumulate in Roth space. Realizing that most of my savings are in tax deferred accounts, about 5 years ago I started contributing to this each month and rolling over to my Roth. I wish I had done this earlier.
I evidently didn't do this correctly; for the paycheck that hit today, I asked to contribute post-tax to DCP. I had it set in Fidelity Netbenefits -- and the paycheck hit my bank account. :-( I didn't need the cash and I was trying to expand my Roth space.

What's the mechanism to contribute, and who do I have to talk to to make it happen? I'm guessing the money from today's paycheck can't be withdrawn and then contributed.
Getting contribution into the after tax DCP might involve a push from UC to Fidelity rather than a pull by Fidelity from UC. Also, it takes at least a few days from the time you enter until it is in the system, so it won't work last minute. Be sure that if you maxed out your pre-tax contributios that you still can contribute post-tax--I could never get clarity about that, but seems there is one overall limit.
That's good to know. There's still the issue that it showed up in my bank account, so it probably won't happen for yesterday's check.

And I'll leave the post-tax desired contribution amount alone, so I'll hopefully get the September 1 done well :-)
juro wrote:
Sat Aug 01, 2020 5:11 pm
Clever_Username wrote:
Fri Jul 31, 2020 10:30 am
Monsterflockster wrote:
Fri Jul 31, 2020 10:12 am
Man... what happened? Your first post was iver a year ago. 😂
I wasn't able to do the MBR portions in 2019 -- I maxed out the 403 and 457 but that consumed what I could contribute. Then in 2020 I maxed out those two over my first six paychecks, figuring I'd start doing the MBR with the July 31 / Aug 1 paycheck. Turns out I guess I'm waiting until at least the Sep 1 paycheck to start the MBR. :-(
You might not have made the cutoff for the month if you made this change in NetBenefits late in the month. I know when I’ve made a change to the amount in the first week of the month, it will definitely show up in the next paycheck but if you were mid-late in month it might not show up until the following pay period. Also, one tip, rather than calling the regular toll free number UC has listed on the myUCretirement website, call this one instead as it saves a step of Fidelity having to transfer you to the UC specific desk - (800) 248-4213 .
That is super useful information, thanks. I think I set the amount in early July, but it's possible I missed it. Oh well, I'm learning for future years; I hope to be here a long time.
juro wrote:
Sat Aug 01, 2020 5:26 pm
johnra wrote:
Sat Aug 01, 2020 4:42 pm
Clever_Username wrote:
Fri Jul 31, 2020 9:51 am
johnra wrote:
Thu Jul 04, 2019 1:13 am
The after-tax DCP plan is nice way to accumulate in Roth space. Realizing that most of my savings are in tax deferred accounts, about 5 years ago I started contributing to this each month and rolling over to my Roth. I wish I had done this earlier.
I evidently didn't do this correctly; for the paycheck that hit today, I asked to contribute post-tax to DCP. I had it set in Fidelity Netbenefits -- and the paycheck hit my bank account. :-( I didn't need the cash and I was trying to expand my Roth space.

What's the mechanism to contribute, and who do I have to talk to to make it happen? I'm guessing the money from today's paycheck can't be withdrawn and then contributed.
Getting contribution into the after tax DCP might involve a push from UC to Fidelity rather than a pull by Fidelity from UC. Also, it takes at least a few days from the time you enter until it is in the system, so it won't work last minute. Be sure that if you maxed out your pre-tax contributios that you still can contribute post-tax--I could never get clarity about that, but seems there is one overall limit.
I always call our plan a unicorn. The 401a has its own separate $57k limit from the 403b and 457b. If he’s in the 1976 tier, he can use the the full $57k for the MBR. If he is in the Savings Choice (rather than the pension plan), it may be reduced by the UC matching contributions. I am in there earlier tier so not entirely sure of this but Fidelity will be able to confirm it, as they confirmed I had access to use the full $57k.
The plan is super awesome, it's truly amazing. I am not 1976 tier, though -- I was rehired on or after July 1 2016 after a break in service (I had worked for the UC system a few times prior to that date, but had not done so, among other times, the entire calendar year 2015). But I still get amazing benefits and this awesome system.


......................

And I just found out they contributed a few hundred dollars as "Summary Salary DC Plan" ... to my 403(b). A few hundred dollars from before-tax deduction and an equal matching amount as an employer paid benefit (which is doubly weird, because my DCP contributions get a higher employer provided portion). And there's four line items being paid in yesterday's check, and the dollar amount being added isn't a familiar percent of any subset of them.

The HR folks are going to hate me :( I want to be liked and I don't want to be That Guy ... really.
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Re: Yet Another University of California retirement savings thread

Post by Bob McGnome » Sun Aug 02, 2020 8:48 am

Are you receiving some form of summer salary or additional compensation? If so, that additional amount you were curious about is a 3.5% you / 3.5% UC mandatory DCP contribution from summer salary or some forms of additional compensation.

Details are here:
https://ucnet.universityofcalifornia.ed ... enefit.pdf

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Re: Yet Another University of California retirement savings thread

Post by Clever_Username » Sun Aug 02, 2020 2:44 pm

Bob McGnome wrote:
Sun Aug 02, 2020 8:48 am
Are you receiving some form of summer salary or additional compensation? If so, that additional amount you were curious about is a 3.5% you / 3.5% UC mandatory DCP contribution from summer salary or some forms of additional compensation.

Details are here:
https://ucnet.universityofcalifornia.ed ... enefit.pdf
You solved the mystery; it was, in fact, 3.5% of my summer salary (some from a grant paying for work, some for teaching a class).

It appears I am going to have to back out some over-contribution to my 403(b) (unless mandatory contributions don't count towards the limit, which I doubt) and not max out my 403(b) until after summer salary in future years.

Thank you!
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Re: Yet Another University of California retirement savings thread

Post by Clever_Username » Sun Aug 02, 2020 2:46 pm

Bob McGnome wrote:
Sun Aug 02, 2020 8:48 am
Are you receiving some form of summer salary or additional compensation? If so, that additional amount you were curious about is a 3.5% you / 3.5% UC mandatory DCP contribution from summer salary or some forms of additional compensation.

Details are here:
https://ucnet.universityofcalifornia.ed ... enefit.pdf
And it looks like I may need translating on one statement from the link you posted:
The mandatory SSB contributions do not reduce the elective
deferral limit for an academic appointee’s voluntary
contributions to the 403(b) Plan and/or the UC 457(b) Deferred
Compensation Plan
I can't tell if that means that I can contribute the maximum to the 403(b) every year, in addition to whatever the SSB is?
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Re: Yet Another University of California retirement savings thread

Post by Sandi_k » Sun Aug 02, 2020 5:28 pm

Clever_Username wrote:
Sun Aug 02, 2020 2:46 pm

And it looks like I may need translating on one statement from the link you posted:
The mandatory SSB contributions do not reduce the elective
deferral limit for an academic appointee’s voluntary
contributions to the 403(b) Plan and/or the UC 457(b) Deferred
Compensation Plan
I can't tell if that means that I can contribute the maximum to the 403(b) every year, in addition to whatever the SSB is?
You can contribute $19,500 to the 403(b), $19,500 to the 457. The Summer Salary Benefit (SSB) is not counted in those limits.

https://ucnet.universityofcalifornia.ed ... enefit.pdf

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Re: Yet Another University of California retirement savings thread

Post by Clever_Username » Sun Aug 02, 2020 7:11 pm

Sandi_k wrote:
Sun Aug 02, 2020 5:28 pm
Clever_Username wrote:
Sun Aug 02, 2020 2:46 pm

And it looks like I may need translating on one statement from the link you posted:
The mandatory SSB contributions do not reduce the elective
deferral limit for an academic appointee’s voluntary
contributions to the 403(b) Plan and/or the UC 457(b) Deferred
Compensation Plan
I can't tell if that means that I can contribute the maximum to the 403(b) every year, in addition to whatever the SSB is?
You can contribute $19,500 to the 403(b), $19,500 to the 457. The Summer Salary Benefit (SSB) is not counted in those limits.

https://ucnet.universityofcalifornia.ed ... enefit.pdf
Thank you. If I'm reading correctly, this means I don't have to worry about the "over" contribution to the 403(b) (since I'm now over $19,500 for the year of pre-tax deductions that went in).

Is a similar reason why I wasn't able to use post-tax money from that paycheck to go into the DCP post-tax? I figure they took out the 403(b) part I had intended (when I thought summer salary would go into the DCP), then did the other required deductions and so on, and then didn't have anything left from my "base" (9-month) salary to use?
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Re: Yet Another University of California retirement savings thread

Post by Sandi_k » Mon Aug 03, 2020 12:19 pm

Clever_Username wrote:
Sun Aug 02, 2020 7:11 pm
Sandi_k wrote:
Sun Aug 02, 2020 5:28 pm
Clever_Username wrote:
Sun Aug 02, 2020 2:46 pm

And it looks like I may need translating on one statement from the link you posted:
The mandatory SSB contributions do not reduce the elective
deferral limit for an academic appointee’s voluntary
contributions to the 403(b) Plan and/or the UC 457(b) Deferred
Compensation Plan
I can't tell if that means that I can contribute the maximum to the 403(b) every year, in addition to whatever the SSB is?
You can contribute $19,500 to the 403(b), $19,500 to the 457. The Summer Salary Benefit (SSB) is not counted in those limits.

https://ucnet.universityofcalifornia.ed ... enefit.pdf
Thank you. If I'm reading correctly, this means I don't have to worry about the "over" contribution to the 403(b) (since I'm now over $19,500 for the year of pre-tax deductions that went in).
I don't understand this sentence. You get $19,500 for each. If you're over-contributed, that's a mistake, and it should be corrected.
Clever_Username wrote:
Sun Aug 02, 2020 7:11 pm
Is a similar reason why I wasn't able to use post-tax money from that paycheck to go into the DCP post-tax?
The DCP is pre-tax only, based on a percentage of your gross salary. Note that it goes to increase your pension payment upon retirement - it is NOT separate money that you can distribute or roll over to an IRA upon separation from service.

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Re: Yet Another University of California retirement savings thread

Post by Clever_Username » Mon Aug 03, 2020 5:10 pm

Sandi_k wrote:
Mon Aug 03, 2020 12:19 pm
Clever_Username wrote:
Sun Aug 02, 2020 7:11 pm
Sandi_k wrote:
Sun Aug 02, 2020 5:28 pm
Clever_Username wrote:
Sun Aug 02, 2020 2:46 pm

And it looks like I may need translating on one statement from the link you posted:
The mandatory SSB contributions do not reduce the elective
deferral limit for an academic appointee’s voluntary
contributions to the 403(b) Plan and/or the UC 457(b) Deferred
Compensation Plan
I can't tell if that means that I can contribute the maximum to the 403(b) every year, in addition to whatever the SSB is?
You can contribute $19,500 to the 403(b), $19,500 to the 457. The Summer Salary Benefit (SSB) is not counted in those limits.

https://ucnet.universityofcalifornia.ed ... enefit.pdf
Thank you. If I'm reading correctly, this means I don't have to worry about the "over" contribution to the 403(b) (since I'm now over $19,500 for the year of pre-tax deductions that went in).
I don't understand this sentence. You get $19,500 for each. If you're over-contributed, that's a mistake, and it should be corrected.
Clever_Username wrote:
Sun Aug 02, 2020 7:11 pm
Is a similar reason why I wasn't able to use post-tax money from that paycheck to go into the DCP post-tax?
The DCP is pre-tax only, based on a percentage of your gross salary. Note that it goes to increase your pension payment upon retirement - it is NOT separate money that you can distribute or roll over to an IRA upon separation from service.
I probably explained poorly what has happened. Sorry about that. I really do appreciate your help, and I'm sorry for adding more to the plate for work to do.

If it's relevant, I'm on Savings choice, most recently added tier of service origination, and I'm not on the pension plan.

3.5% of my summer salary, the first payment of which was on Friday's check, is listed as "Summer Salary DC Plan" on before-tax deductions (and also in an equal amount with the same label on employer-paid benefits) This is (confusingly) separate from the portion of my salary that is paid every month, including the summer, and was also on the check. It is listed as a before-tax deduction and also as an employer paid benefit, each in the amount of 3.5% of the summer salary (summer class + 1/9 annual pay for work, being paid out of a grant, not all of which is on the July 31 check).

I also contributed to my 403(b) with my most recent check. That is listed as a before-tax deduction as "403B Vol Plan." Including the amount listed for this, I now have $19,500 YTD on this line item.

If I log into Fidelity NetBenefits and check my 403(b), and check transaction history of the past 30 days, I have two contributions, both dated 7/31:

* Employee Contributions, in an amount equal to the sum of the "403B Vol Plan" and "Summer Salary DC Plan" from my before-tax deduction column. Under details, it provides two line items: "01 - VOLUNTARY CONTRIBUTIONS" (in an amount equal to the 403B Vol Plan amount) and "06 - SUMMER SALARY EE" (in an amount equal to the "Summer Salary DC Plan" amount)

* Employer Contributions, in an amount equal to the "Summer Salary DC Plan" amount from employer paid benefits, details give this as "08 - SUMMER SALARY ER"

And then when I go to the 403(b) plan summary page (not summary plan description; "summary" tab in Fidelity Netbenefits), I see this:

"Employee Contributions (2020) $20,151.09
Employer Contributions (2020) $651.09"

But my understanding is that being over the limit (I am over by exactly the amount listed as "Summary Salary DC Plan" in my before-tax deductions) isn't really over the limit in the sense of an over-contribution. I believe that because of the section in the summer salary benefit pamphlet that says "[t]he mandatory SSB contributions do not reduce the elective deferral limit for an academic appointee’s voluntary contributions to the 403(b) Plan and/or the UC 457(b) Deferred Compensation Plan"

But I also don't quite want to wait 8 months and hope the IRS agrees with me.
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Re: Yet Another University of California retirement savings thread

Post by Sandi_k » Mon Aug 03, 2020 7:19 pm

So you paid $651 in employee contributions from Summer Salary, and UC paid $651 in EmployER contributions from summer salary. Into DCP, yes, not 403(b)?

And in your regular 9 month academic salary, paid out over 12 months:

$19,500/12 = $1625 per monthly paycheck into 403(b), as well the 3.5% DCP for the entire year (both monthly regular income, plus summer salary).

The DCP is mandatory, and thus involuntary. It counts towards the $57k annual limit.

If anywhere shows more than $19,500 into the 403(b), you've over-contributed.

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Re: Yet Another University of California retirement savings thread

Post by Clever_Username » Tue Aug 04, 2020 12:41 am

Sandi_k wrote:
Mon Aug 03, 2020 7:19 pm
So you paid $651 in employee contributions from Summer Salary, and UC paid $651 in EmployER contributions from summer salary. Into DCP, yes, not 403(b)?

And in your regular 9 month academic salary, paid out over 12 months:

$19,500/12 = $1625 per monthly paycheck into 403(b), as well the 3.5% DCP for the entire year (both monthly regular income, plus summer salary).

The DCP is mandatory, and thus involuntary. It counts towards the $57k annual limit.

If anywhere shows more than $19,500 into the 403(b), you've over-contributed.
I paid $651 in employEE contributions, and the UC an equal amount of employER contributions of summer from summer salary into the 403(b). I didn't choose it that way. It ended up there.

I don't max out the 403(b)/457 over equal amounts; rather, I aim to max it out at the start of the year, because how much I put for voluntary contributions don't affect matching and I'd rather have the money in tax-advantaged space.

My regular DCP contributions (involuntary, but I like them anyway) are 7% of my salary, plus 8% employER-paid benefit. But not all of my salary seems subject to that -- summer went in at a different percent (and to a different place, the 403(b), for some reason), and when I taught a class that is under a self-supporting program, nothing from that ended up in the DCP. Nothing by my choice; if anything, I'd love more before-tax deductions into tax-advantaged space.
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Re: Yet Another University of California retirement savings thread

Post by Sandi_k » Tue Aug 04, 2020 12:47 am

Clever_Username wrote:
Tue Aug 04, 2020 12:41 am

I paid $651 in employEE contributions, and the UC an equal amount of employER contributions of summer from summer salary into the 403(b). I didn't choose it that way. It ended up there.

I don't max out the 403(b)/457 over equal amounts; rather, I aim to max it out at the start of the year, because how much I put for voluntary contributions don't affect matching and I'd rather have the money in tax-advantaged space.

My regular DCP contributions (involuntary, but I like them anyway) are 7% of my salary, plus 8% employER-paid benefit. But not all of my salary seems subject to that -- summer went in at a different percent (and to a different place, the 403(b), for some reason), and when I taught a class that is under a self-supporting program, nothing from that ended up in the DCP. Nothing by my choice; if anything, I'd love more before-tax deductions into tax-advantaged space.
Yeah, that sound weird. I'm in the 1976 Tier, so don't see pay stubs like yours, but I would definitely send in a query via UCPath's portal. Since I'm pension only, it's only me for the 403/457 contributions, and pre-tax to DCP at 7.95%.

The other possibility would be to speak to the UC-Fidelity line; presumably they have more familiarity with the newer plans. I have never heard of employer contributions to either the 403(b) or 457.

Do you have other faculty you can ask who may be contributing? Sometimes peer-to-peer is fastest.

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Clever_Username
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Re: Yet Another University of California retirement savings thread

Post by Clever_Username » Tue Aug 04, 2020 8:49 am

Sandi_k wrote:
Tue Aug 04, 2020 12:47 am
Clever_Username wrote:
Tue Aug 04, 2020 12:41 am

I paid $651 in employEE contributions, and the UC an equal amount of employER contributions of summer from summer salary into the 403(b). I didn't choose it that way. It ended up there.

I don't max out the 403(b)/457 over equal amounts; rather, I aim to max it out at the start of the year, because how much I put for voluntary contributions don't affect matching and I'd rather have the money in tax-advantaged space.

My regular DCP contributions (involuntary, but I like them anyway) are 7% of my salary, plus 8% employER-paid benefit. But not all of my salary seems subject to that -- summer went in at a different percent (and to a different place, the 403(b), for some reason), and when I taught a class that is under a self-supporting program, nothing from that ended up in the DCP. Nothing by my choice; if anything, I'd love more before-tax deductions into tax-advantaged space.
Yeah, that sound weird. I'm in the 1976 Tier, so don't see pay stubs like yours, but I would definitely send in a query via UCPath's portal. Since I'm pension only, it's only me for the 403/457 contributions, and pre-tax to DCP at 7.95%.

The other possibility would be to speak to the UC-Fidelity line; presumably they have more familiarity with the newer plans. I have never heard of employer contributions to either the 403(b) or 457.

Do you have other faculty you can ask who may be contributing? Sometimes peer-to-peer is fastest.
Thanks. That's good to know. It's the first employer contribution to the 403(b) I've seen.

I'll check in with other faculty this week. I'm not sure if there's anyone else on my tier who is contributing as much as I am, but I certainly won't if I don't look.
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Bob McGnome
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Re: Yet Another University of California retirement savings thread

Post by Bob McGnome » Tue Aug 04, 2020 3:47 pm

Hi Again,

A couple of years ago the UC switched from contributing the summer salary benefit from the DCP to your 403b. I’m sure there is a reason but I don’t know what it is. It does not count towards your contribution limits.

From

https://ucnet.universityofcalifornia.ed ... enefit.pdf

—-
The mandatory SSB contributions do not reduce the elective deferral limit for an academic appointee’s voluntary contributions to the 403(b) Plan and/or the UC 457(b) Deferred Compensation Plan.
—-

Hope this helps

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Sandi_k
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Re: Yet Another University of California retirement savings thread

Post by Sandi_k » Tue Aug 04, 2020 4:43 pm

Thanks for plucking that out of the PDF - very good to know!

And I suspect they put it into the 403(b), not the DCP, because your summer salary does not count towards the HAPC calculation for "high three." If they allowed SSB to go to the DCP, it would be funding your pension, which will be capped for most faculty.

Thus the choice to direct it to the 403(b) - less fighting with faculty, which is always a good thing. ;)
Bob McGnome wrote:
Tue Aug 04, 2020 3:47 pm
Hi Again,

A couple of years ago the UC switched from contributing the summer salary benefit from the DCP to your 403b. I’m sure there is a reason but I don’t know what it is. It does not count towards your contribution limits.

From

https://ucnet.universityofcalifornia.ed ... enefit.pdf

—-
The mandatory SSB contributions do not reduce the elective deferral limit for an academic appointee’s voluntary contributions to the 403(b) Plan and/or the UC 457(b) Deferred Compensation Plan.
—-

Hope this helps

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