Florida SUSORP

[tomorrowsomewherenew]

My husband is leaving the military this year and will begin working in a position covered by the Florida SUSORP. This program has a mandatory contribution of 3%. Does this mandatory contribution count towards the $18,000 TSP/403b contribution limit? I know that voluntary contributions count towards the limit, but I'm not sure about mandatory contributions. He is on track to max out his TSP before he leaves service. If the 3% counts towards the limit, then I'd like to stop the contributions to the TSP so we don't have a paperwork disaster to deal with (by going over the contribution limit).

[dandarc]

Googling - TSP and 403B (SUSORP is a 403B) Elective deferrals are a combined pot.  However, it looks to me like truly mandatory deferrals are not, in fact, elective deferrals that are subject to the 402g limit.

https://www.irs.gov/irm/part4/irm_04-072-013-cont01.html

Appears the question is "Is there any way at all for your husband to opt-out of the mandatory deferal?"  If yes, you've got that 18K limit to take into account for the 3%.  If not, then no worries.

[dandarc]

Also, since your husband is at a university in Florida, and you're posting on an early-retirement forum, see if he's eligible for Deferred Compensation (https://myfloridadeferredcomp.com/SOFWeb/default.aspx).  457B is an awesome place to have money if you retire before 59.5.

[tomorrowsomewherenew]

Yes, we definitely plan on using the 457 plan.

The information provided by his university regarding the SUSORP was not very good, but I was able to confirm using another university's materials that the mandatory contributions DON'T count towards the 403/b limit. Yay for that! That's another 3% we can put away! Thank you for the help everyone.

[Cycling Stache]

I don't believe so, but following because I had not considered this to be a potential issue.

My wife is a State of Florida employee and is required to make the mandatory contributions towards the Florida Retirement Investment Plan (as opposed to pension plan).  Separately, she is maxing out her 403(b) account for the full $18k per year.  Nobody indicated that it presented an issue, nor was there any reference to a conflict in the paperwork.  The money ends up in two different places (myFRS for the former, Vanguard for the latter), although it all does end up invested in retirement accounts.

I can't imagine there would be a problem given that just doing the math to try to hit the max would be a huge headache, but I am interested to know if someone has more definite information on this.  The distinction seems to hinge on whether the $18,000 limit is applicable only to voluntary contributions.

[dandarc]

I don't believe so, but following because I had not considered this to be a potential issue.

My wife is a State of Florida employee and is required to make the mandatory contributions towards the Florida Retirement Investment Plan (as opposed to pension plan).  Separately, she is maxing out her 403(b) account for the full $18k per year.  Nobody indicated that it presented an issue, nor was there any reference to a conflict in the paperwork.  The money ends up in two different places (myFRS for the former, Vanguard for the latter), although it all does end up invested in retirement accounts.

I can't imagine there would be a problem given that just doing the math to try to hit the max would be a huge headache, but I am interested to know if someone has more definite information on this.  The distinction seems to hinge on whether the $18,000 limit is applicable only to voluntary contributions.

Curious which agency she works for?  My wife works for the legislature, and as far as I know we have FRS (exactly 3% + match) and deferred comp and that's it.

[Cycling Stache]

I don't believe so, but following because I had not considered this to be a potential issue.

My wife is a State of Florida employee and is required to make the mandatory contributions towards the Florida Retirement Investment Plan (as opposed to pension plan).  Separately, she is maxing out her 403(b) account for the full $18k per year.  Nobody indicated that it presented an issue, nor was there any reference to a conflict in the paperwork.  The money ends up in two different places (myFRS for the former, Vanguard for the latter), although it all does end up invested in retirement accounts.

I can't imagine there would be a problem given that just doing the math to try to hit the max would be a huge headache, but I am interested to know if someone has more definite information on this.  The distinction seems to hinge on whether the $18,000 limit is applicable only to voluntary contributions.

Curious which agency she works for?  My wife works for the legislature, and as far as I know we have FRS (exactly 3% + match) and deferred comp and that's it.

Miami Dade College, but I believe she's considered a state employee.

I'm learning a lot from this thread.  I was under the impression that all state employees had access to the 403(b) plan, but maybe it's just schools?  They call it the Annuity Plan, but it's really just normal index funds at Vanguard or other places.

Do regular full-time state employees not have access to any kind of 401(k) equivalent?  That seems incredible to me if not. 

[Wilson Hall]

I don't believe so, but following because I had not considered this to be a potential issue.

My wife is a State of Florida employee and is required to make the mandatory contributions towards the Florida Retirement Investment Plan (as opposed to pension plan).  Separately, she is maxing out her 403(b) account for the full $18k per year.  Nobody indicated that it presented an issue, nor was there any reference to a conflict in the paperwork.  The money ends up in two different places (myFRS for the former, Vanguard for the latter), although it all does end up invested in retirement accounts.

I can't imagine there would be a problem given that just doing the math to try to hit the max would be a huge headache, but I am interested to know if someone has more definite information on this.  The distinction seems to hinge on whether the $18,000 limit is applicable only to voluntary contributions.

Curious which agency she works for?  My wife works for the legislature, and as far as I know we have FRS (exactly 3% + match) and deferred comp and that's it.

Miami Dade College, but I believe she's considered a state employee.

I'm learning a lot from this thread.  I was under the impression that all state employees had access to the 403(b) plan, but maybe it's just schools?  They call it the Annuity Plan, but it's really just normal index funds at Vanguard or other places.

Do regular full-time state employees not have access to any kind of 401(k) equivalent?  That seems incredible to me if not.

When I worked for the state, I had a 457 account. At the time, I'm pretty sure that was the only option aside from the FRS plans. Now that I work for a county school system, I have both a 403(b) and a 457.

[dandarc]

I don't believe so, but following because I had not considered this to be a potential issue.

My wife is a State of Florida employee and is required to make the mandatory contributions towards the Florida Retirement Investment Plan (as opposed to pension plan).  Separately, she is maxing out her 403(b) account for the full $18k per year.  Nobody indicated that it presented an issue, nor was there any reference to a conflict in the paperwork.  The money ends up in two different places (myFRS for the former, Vanguard for the latter), although it all does end up invested in retirement accounts.

I can't imagine there would be a problem given that just doing the math to try to hit the max would be a huge headache, but I am interested to know if someone has more definite information on this.  The distinction seems to hinge on whether the $18,000 limit is applicable only to voluntary contributions.

Curious which agency she works for?  My wife works for the legislature, and as far as I know we have FRS (exactly 3% + match) and deferred comp and that's it.

Miami Dade College, but I believe she's considered a state employee.

I'm learning a lot from this thread.  I was under the impression that all state employees had access to the 403(b) plan, but maybe it's just schools?  They call it the Annuity Plan, but it's really just normal index funds at Vanguard or other places.

Do regular full-time state employees not have access to any kind of 401(k) equivalent?  That seems incredible to me if not.

That's correct from what I've found - 403B's are for schools and hospitals, but not generic government work.  At least there is FRS (totals 6-7% if you're in the investment plan) and 457B.  Maybe its time to lobby for a 401k for the 60K+ state employees? 

Imagine that debate would go like "State employees already have just as much tax-deferred space as private-sector employees with 401ks.  Even a bit better with deferred comp - better withdrawal rules.  Why should state-employees have it better than the taxpayers they serve!?!?!?"