Voluntary Tax Sheltered Annuity

VTSA's offer an opportunity for significant tax savings-through pretax and tax-sheltered compounding of earnings-while building for a comfortable retirement. The 403(b) plan is a powerful and unique way to invest. Once you begin removing money from your VTSA account, you will pay taxes, but most likely at a lower tax bracket.

When can I make withdrawals from my 403(b) account? Withdrawals are permitted at age 59 ½, death, disability or separation from service. You'll pay income tax at your usual rate when you make a withdrawal for any of these reasons. Any withdrawal before 59 ½ results in a 10% penalty plus taxes.

How do I enroll in the VTSA program? Choose a provider from the list of companies who are registered with the Kansas Board of Regents and complete an application. Decide how much you want to save as tax deferred. Complete a salary reductions agreement with the Payroll Office to begin the deductions. The agreement will begin within the pay period it is received. The Payroll Office will forward the premiums to the company usually around the normal pay check date. Sit back and watch your money grow. (List of vendors)

Last Updated April 26, 2007