The VIP is a tax-deferred retirement savings program, operating under Section 403(b) of the Internal Revenue Code (IRC). VIP deductions are made from your gross salary before taxes are calculated, so you pay less tax now. Contributions and earnings grow tax-deferred, until you withdraw income.
It is not necessary to be in one of the basic retirement plans to participate in the VIP. You may enroll in the VIP at any time. The UW does not match employee contributions.
The VIP is available to any UW employee except students (whose wages are exempt from FICA), and nonresident aliens (who receive no U.S.-source of earned income).
Money contributed to the VIP should be regarded as unavailable until you reach age 59 1/2. While you are still employed, the IRS limits access to these accounts except under IRC "hardship" rules.
There are four companies available through the VIP: Calvert, Fidelity, TIAA-CREF, and Vanguard. You can invest in any fund a company offers, as long as the fund is accepting new investors. Be sure to read the fund prospectus carefully before investing in a fund. Visit the company's website to view their online prospectus.
Learn about the VIP
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