How does the STDA Plan work?
You decide how much you want to save, up to the IRS maximum, and you choose the investment funds in which contributions to your account will be invested. A wide array of choices are available, so that you can choose the investments that are right for you. (See also, “How much can I contribute to a 403(b) Plan?” below) You contribute to your account through pre-tax salary reductions. This means that your contributions are taken out of your pay before taxes are calculated, thus reducing current taxable income. (See also, “A Note on Tax-Deferred Contributions and State Practices” below.) The University has selected TIAA-CREF and the Vanguard Group to offer as investment options under the Plan. When you join the Plan, you choose the investment funds in which contributions to your account will be invested. You can choose to invest your entire account in one fund, or you can spread your investments among several funds. You do not pay Federal, New York State or New York City taxes on the mone
