Lawriter - OAC - 3364-25-42 Tax sheltered annuities.

3364-25-42 Tax sheltered annuities.

(A) Policy statement

The university of Toledo offers a tax sheltered annuity program in accordance with applicable federal and/or state laws.

(B) Procedure

(1) Federal laws exempt an individual from paying taxes on a portion of their salary which they choose to defer in an annuity contract until retirement or separation from employment.

(2) Employees of the university may elect to have part of their compensation deferred in qualified tax sheltered annuities, which may have tax advantages for some employees. This program allows employees to save a portion of their pay through convenient payroll deductions made before federal and state income taxes are calculated. Employees who avail themselves of this plan can, in addition to the benefits they accumulate through the pension plan, earn tax deferred dollars, reduce current taxable income and accumulate assets for retirement.

(3) Neither the university nor any of its officers or employees assume any responsibility whatsoever for negligence, mistake or inadvertence, nor for computing the exclusion allowance and determining that the premiums are fully excludable from current taxable income.

(4) No partial premium payments on individual contracts will be made.

Effective: 11/3/2016
Promulgated Under: 111.15
Statutory Authority: 3364
Rule Amplifies: 3364