{"id":1060,"date":"2017-05-23T08:24:58","date_gmt":"2017-05-23T12:24:58","guid":{"rendered":"https:\/\/health.uconn.edu\/graduate-medicine\/?page_id=1060"},"modified":"2025-12-23T13:20:15","modified_gmt":"2025-12-23T18:20:15","slug":"tax-sheltered-investment-program-403b-roth-faq","status":"publish","type":"page","link":"https:\/\/health.uconn.edu\/graduate-medical-education\/cahc\/frequently-asked-questions\/tax-sheltered-investment-program-403b-roth-faq\/","title":{"rendered":"Tax Sheltered Investment Program (403b, Roth) FAQ"},"content":{"rendered":"<div class=\"in-page-tabs\"><ul id=\"menu-cahc-faq\" class=\"menu nav nav-tabs\"><li id=\"menu-item-1033\" class=\"menu-item menu-item-type-post_type menu-item-object-page\"><a href=\"https:\/\/health.uconn.edu\/graduate-medical-education\/cahc\/frequently-asked-questions\/health-insurance-faq\/\">Health Insurance<\/a><\/li><li id=\"menu-item-1041\" class=\"menu-item menu-item-type-post_type menu-item-object-page\"><a href=\"https:\/\/health.uconn.edu\/graduate-medical-education\/cahc\/frequently-asked-questions\/cobra-faq\/\">COBRA<\/a><\/li><li id=\"menu-item-1046\" class=\"menu-item menu-item-type-post_type menu-item-object-page\"><a href=\"https:\/\/health.uconn.edu\/graduate-medical-education\/cahc\/frequently-asked-questions\/vision-insurance-faq\/\">Vision<\/a><\/li><li id=\"menu-item-1049\" class=\"menu-item menu-item-type-post_type menu-item-object-page\"><a href=\"https:\/\/health.uconn.edu\/graduate-medical-education\/cahc\/frequently-asked-questions\/life-insurance-faq\/\">Life Insurance<\/a><\/li><li id=\"menu-item-1054\" class=\"menu-item menu-item-type-post_type menu-item-object-page\"><a href=\"https:\/\/health.uconn.edu\/graduate-medical-education\/cahc\/frequently-asked-questions\/disability-insurance-faq\/\">Disability<\/a><\/li><li id=\"menu-item-1058\" class=\"menu-item menu-item-type-post_type menu-item-object-page\"><a href=\"https:\/\/health.uconn.edu\/graduate-medical-education\/cahc\/frequently-asked-questions\/dependent-care-reimbursement-account-faq\/\">Dependent Care<\/a><\/li><li id=\"menu-item-1062\" class=\"menu-item menu-item-type-post_type menu-item-object-page\"><a href=\"https:\/\/health.uconn.edu\/graduate-medical-education\/cahc\/frequently-asked-questions\/tax-sheltered-investment-program-403b-roth-faq\/\">403b\/Roth<\/a><\/li><li id=\"menu-item-1067\" class=\"menu-item menu-item-type-post_type menu-item-object-page\"><a href=\"https:\/\/health.uconn.edu\/graduate-medical-education\/cahc\/frequently-asked-questions\/managing-stress\/\">Managing Stress<\/a><\/li><li id=\"menu-item-1070\" class=\"menu-item menu-item-type-post_type menu-item-object-page\"><a href=\"https:\/\/health.uconn.edu\/graduate-medical-education\/cahc\/frequently-asked-questions\/work-related-injury-faq\/\">Work Injury<\/a><\/li><\/ul><\/div><div id=\"pl-1060\"  class=\"panel-layout\" ><div id=\"pg-1060-0\"  class=\"panel-grid panel-no-style\" ><div id=\"pgc-1060-0-0\"  class=\"panel-grid-cell\" ><div id=\"panel-1060-0-0-0\" class=\"so-panel widget widget_black-studio-tinymce widget_black_studio_tinymce panel-first-child panel-last-child\" data-index=\"0\" ><div class=\"textwidget\"><h3><span class=\"style1\">Is there a tax sheltered investment plan?<\/span><\/h3>\n<p>Yes, monies can be deducted from your paycheck on a pre-tax basis (403b) or a post-tax basis (Roth 403b). The pre-tax option reduces the amount of income that is taxed resulting in a higher net pay. The funds become taxable to you upon distribution at retirement. For the Roth post-tax option, taxes are withheld on earnings and the contributions and earnings at retirement are not taxable to you.<\/p>\n<h3><span class=\"style1\">Is there a matching contribution by the employer?<\/span><\/h3>\n<p>No, the plan is voluntary and employee funded.<\/p>\n<h3><span class=\"style1\">Is there a maximum amount that can be contributed per year?<\/span><\/h3>\n<p>Yes, the 2026 maximum is $24,500 per year. For taxpayers over 50 years, additional catch-up contributions are allowed. See the IRS\u2019s website for additional details <a href=\"https:\/\/www.irs.gov\/newsroom\/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500\" target=\"_blank\" rel=\"noopener\">401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 | Internal Revenue Service<\/a><\/p>\n<h3><span class=\"style1\">Is there a penalty for early withdrawal?<\/span><\/h3>\n<p>Yes, there is a 10% penalty in addition to 100% of the amount received becoming taxable in the year withdrawn. There is no penalty if you have reached 59 1\/2 years or in the event of death or permanent disability.<\/p>\n<h3><span class=\"style1\">Can I rollover my funds when my employment ends?<\/span><\/h3>\n<p>Yes, you can transfer your funds to another tax deferred Company plan or to an Individual IRA upon separation from employment.<\/p>\n<h3><span class=\"style1\">Can I borrow monies from my account for qualified purchases?<\/span><\/h3>\n<p>No, the plan does not allow loans from the invested funds.<\/p>\n<h3><span class=\"style1\">Where are the funds invested?<\/span><\/h3>\n<p>The Consortium has an Open Architecture Plan through Lincoln Financial and has numerous funds to choose from. CAHC is not responsible for any investment decisions.<\/p>\n<h3><span class=\"style1\">Who do I contact to set up an account?<\/span><\/h3>\n<p>Contact the Capital Area Health Consortium at 860-676-1110 or Michael Tran at <a href=\"mailto:mitran@uchc.edu\">mitran@uchc.edu<\/a>.<\/p>\n<\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Is there a tax sheltered investment plan? Yes, monies can be deducted from your paycheck on a pre-tax basis (403b) or a post-tax basis (Roth 403b). The pre-tax option reduces the amount of income that is taxed resulting in a higher net pay. The funds become taxable to you upon distribution at retirement. For the [&hellip;]<\/p>\n","protected":false},"author":31,"featured_media":0,"parent":1002,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"acf":[],"publishpress_future_action":{"enabled":false,"date":"2026-04-30 22:23:11","action":"change-status","newStatus":"draft","terms":[],"taxonomy":""},"_links":{"self":[{"href":"https:\/\/health.uconn.edu\/graduate-medical-education\/wp-json\/wp\/v2\/pages\/1060"}],"collection":[{"href":"https:\/\/health.uconn.edu\/graduate-medical-education\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/health.uconn.edu\/graduate-medical-education\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/health.uconn.edu\/graduate-medical-education\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/health.uconn.edu\/graduate-medical-education\/wp-json\/wp\/v2\/comments?post=1060"}],"version-history":[{"count":26,"href":"https:\/\/health.uconn.edu\/graduate-medical-education\/wp-json\/wp\/v2\/pages\/1060\/revisions"}],"predecessor-version":[{"id":37658,"href":"https:\/\/health.uconn.edu\/graduate-medical-education\/wp-json\/wp\/v2\/pages\/1060\/revisions\/37658"}],"up":[{"embeddable":true,"href":"https:\/\/health.uconn.edu\/graduate-medical-education\/wp-json\/wp\/v2\/pages\/1002"}],"wp:attachment":[{"href":"https:\/\/health.uconn.edu\/graduate-medical-education\/wp-json\/wp\/v2\/media?parent=1060"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}