Voluntary 403(b) - Tax-deferred or Roth option?
The University of Alaska offers two different types of voluntary 403(b) programs: a tax-deferred option (pre-tax contributions) and a Roth option (post-tax contributions). This article outlines the benefits provided to UA employees.
Availability
The voluntary 403(b) is available to all university employees - including any temporary and student employees. Any employee can start, stop, or change the contributions to a voluntary 403(b) at any time.
Voluntary 403(b) - what is it?
A voluntary 403(b) allows employees to set aside additional funds for retirement. This is a voluntary account separate from any PERS, TRS, ORP, or UA Pension Plan accounts.
Who contributes to a voluntary 403(b)
These accounts are for employee contributions only.
Tax-deferred Annuity vs. Roth
The University provides two options to employees: a pre-tax option and a post-tax option. Depending on your financial goals, it may make sense for you to have either a pre-tax, a post-tax, or - in some cases - a mix of both.
Pre-tax
When you contribute to a tax-deferred voluntary 403(b), you are lowering your taxable income today. These funds are deducted biweekly before any taxes are taken out of your paycheck. Taxes are then paid when you withdraw the funds from the account.
Post-tax (Roth)
When you contribute to a Roth account, you are paying taxes now and contributing fund to the account biweekly after taxes are deducted. The funds are then considered tax-free when you withdraw the funds from the account in the future.
Which is best?
It is usually recommended to have a mix of both pre- and post-tax retirement contributions. To understand what works best for you, we recommend you work with a financial advisor to discuss your overall retirement picture including your goals, lifestyle, and retirement income.
2026 maximum contribution
Updated by the IRS every calendar year
The IRS provides a maximum amount that can be contributed to a voluntary 403(b). This maximum amount is usually adjusted for inflation each year.
2026 maximums
The maximums are based on your age as of December 31 of the current calendar year.
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- Under 50: $24,500
- Between 50-59: $32,500
- Between 60-63: $35,750
- 64+: $32,500
Maximums are a combined limit for both tax-deferred annuity and Roth options
Employees who have both a tax-deferred 403(b) and a Roth 403(b) must remain under the IRS maximums when totaling both accounts together. While the tax treatment of contributions is different between the tax-deferred and Roth accounts, they are both a voluntary 403(b) and together cannot exceed the calendar year maximum.
Available vendors
Tax-deferred providers
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- American Funds Group
- Corebridge Financial (VALIC/AIG)
- Fidelity
- Lincoln Financial Group
- TIAA-CREF
- Vanguard
- Voya Financial (includes ReliaStar Life, ING and ILIAC)
Roth provider
Sign up
First, employees must open an account with their preferred vendor above. Second, employees should complete the 403(b) NextGen form to request the payroll deduction. Don't forget to assign a beneficiary by contacting your vendor!
Learn more
Visit our 403(b) webpage to learn more about or voluntary 403(b) program.
Questions?
If you have any questions on these benefits, please reach out to us at ua-benefits@alaska.edu or (907) 450-8242.
Emailed via benefits newsletter on 5/12/2026.
Contact Benefits: (907) 450-8242 | ua-benefits@alaska.edu | schedule one-on-one time