RCUH provides eligible employees two retirement account options managed by TIAA – Group Retirement Annuity (GRA) and Supplemental Retirement Annuity (SRA). Saving for retirement can help you reduce your taxable income and provide funds for your future.
Group Retirement Annuity (GRA) 401(a):
Supplemental Retirement Annuity (SRA) 403(b):
Employees may make SRA contributions on a pre-tax (Traditional) and/or post-tax (Roth) basis. Need help determining which option is right for you? Please see TIAA's Financial Essentials: Choosing Between Pre-Tax and Roth After-Tax Options.
Note: Roth contributions are mandatory for 403(b) catch-up contributions for individuals identified over the IRS threshold established for the prior year.
| SRA Traditional 403(b) | SRA Roth 403(b) | |
|---|---|---|
Taxes on Contributions |
Contributions are tax-deductible in the year you make them, which lowers your current taxable income. |
Contributions are made with after-tax dollars, so there is no immediate tax deduction. |
Taxes on Withdrawals |
You pay income tax on withdrawals in retirement, including all investment earnings. |
Qualified withdrawals in retirement are 100% tax-free. To qualify, you must be 59 1/2 or older and have had the account open for at least five years. |
Taxes on Earnings |
Your investments grow tax-deferred. |
Your investments grow completely tax-free. |
Impact on Social Security |
Withdrawals in retirement from a traditional account can increase your taxable income, potentially causing your Social Security benefits to be taxed. |
Withdrawals from a Roth account are tax-free and do not count as income, so they will not affect the taxability of your Social Security benefits. |
Required Minimum Distributions (RMDs) |
RMDs from traditional accounts generally begin at age 73 and must be taken annually. |
As of 2024, RMDs are not required during your lifetime from Roth 403(b) accounts. |
This material is for informational or educational purposes only and should not be considered fiduciary investment advice. This material does not consider an individual’s circumstances which should be the basis of any investment decision. Please consult your tax or legal advisor to address your specific circumstances.
To get started, submit an SRA eForm via eUpload in Employee Self‑Service (ESS). Please see the tutorial below!
