Retirement Accounts Investment Options

Carnegie Mellon employees are responsible for investing their university and supplemental retirement contributions.

Upon your hire, your university contributions will automatically be invested in an age-appropriate TIAA-CREF LifeCycle fund. (This default enrollment is based on an anticipated retirement age of 65.)
Upon completion of the appropriate carrier enrollment forms, your retirement account contributions will be invested in the TIAA-CREF and/or Vanguard investment fund options of your choice.
Be sure to complete your retirement applications to ensure that your funds are deposited into the investment funds that best meet your retirement goals.
You may contribute: a minimum of $25 a month ($12.50 per biweekly pay) up to the IRS maximum (in 2009 & 2010 - $16,500; age 50+ can contribute up to $5,500 additional; deferral cannot exceed your salary). Contact TIAA-CREF to determine your personal limit.

Investment Account Options

	TIAA-CREF Group Retirement Annuity (GRA)	TIAA-CREF Group Supplemental Retirement Annuity (GRSA)	Vanguard Mutual Funds
Investment Options	TIAA-CREF Lifecycle Funds TIAA-CREF Carnegie Mellon Investment Guide (.pdf)	TIAA-CREF Lifecycle Funds TIAA-CREF Carnegie Mellon Investment Guide (.pdf)	Vanguard Mutual Funds (.pdf) Vanguard Enrollment Guide (.pdf) Vanguard Fund Options Site
Contribution Type	University contributions. (No Supplemental unless vested and contributing as of April 2006)	Supplemental contributions.	University and Supplemental contributions.
Rate of return / performance	TIAA-CREF Fund Performance Site	TIAA-CREF Fund Performance Site	Vanguard Funds Performance
Roth contributions	No.	Not at this time.	Yes.
Loan features	No loans available.	Loans available, up to 45% .	No loans available.

Traditional vs Roth 403(b) Contributions

In a traditional 403(b) plan, you build your retirement saving with pre-tax dollars to reduce the amount you pay in taxes now, but you will pay taxes on your contributions and their earnings when you withdraw the funds at retirement.
In a Roth 403(b) plan, you make SRA contributions with after-tax dollars, so you'll pay more in taxes now. But your contributions and their earnings will be completely tax free in retirement!

There are advantages and disadvantages to both kinds of accounts, and your individual circumstances impact which is the right choice for you. You may contribute to one or both kinds of accounts.

See the Roth 403(b) Brochure (.pdf) for detailed information about the factors that make each kind of account right for different people.
Retirement Investment Examples (.pdf) illustrate the kinds of tax savings and earnings growth you can achieve under both types of plans.