UNC System 457(b) Retirement
The UNC System 457(b) Plan is a defined contribution plan. This means the value of your retirement benefit is based on the contributions you make to the plan, how you invest them and how your investments perform.
Under the UNC System 457(b) Plan, you may elect to make either pre-tax or Roth after-tax contributions based on the following limits:
- Minimum: $200 per calendar year
- Maximum: 100% of taxable pay not to exceed $19,500 per year for 2020 (If you are age 50 or older, you may defer an additional $6,500 for a total of $26,000 per calendar year)
In addition, you may be eligible to defer up to twice the contribution limit in effect for the three years preceding your normal retirement age which is set at 59 1/2 years of age. To calculate the amount you may be eligible to contribute, please use the Contributor Calculator sponsored by Fidelity Investments. However, the Benefits Office will need to confirm your contribution limit with your vendor prior to taking this additional contribution.
You may choose between two investment carriers – Fidelity Investments or TIAA-CREF – to select the appropriate investment funds (i.e., mutual funds or fixed accounts) to invest your contributions in to meet your retirement goals. Best of all, any earnings from your investment grow tax-deferred until retirement.
Your account is held in a trust by the University of North Carolina exclusively for participants and their beneficiaries.
The UNC System 457(b) Plan has the same investment lineup as the UNC System 403(b) Plan. As a result, UNC funds may offer lower expense management fees within the same asset class as the State Plan. And lower expenses could mean additional savings for you through higher fund returns.
To find out more, visit the UNC System 457(b) Plan website.
Enroll in the UNC System 457(b) Plan:
- NEW FEATURE-You can now enroll or change your UNC 457 online. Log into ConnectCarolina>Self Service>My Benefits>Benefits Enrollment (on left)>Supplemental Retirement Plans
- You may also complete a Voluntary Deferral Agreement form. You must submit the completed form to the HR Benefits Office before any contributions can be accepted into your account.
MAIL: 104 Airport Drive, CB 1045, Chapel Hill, NC 27599
Step 2. Select your investments. Select your investments and designate your beneficiary for the UNC System 457(b) Plan online by visiting the carrier’s website:
If you fail to make an investment election, deferrals will be defaulted into the age appropriate Vanguard Target Date Fund.
Important Note: New deferral agreements are effective the first of the month after receipt as required by IRS 457(b) regulations. For example, if you return your signed and completed Voluntary Deferral Agreement to the Benefits office on the 15th of the month, your UNC System 457(b) Plan deferral will begin the first of the following month.