March 13, 2012

Do you contribute to an outside retirement plan? Tell HR.

Did you know that if you contribute to a non-Vanderbilt retirement plan through outside businesses in which you are at least a 50 percent owner, you need to tell Human Resources by April 1?

To help employees avoid taxes and penalties, HR collects information each spring regarding contributions made to outside retirement plans to help ensure they don’t exceed IRS limits. If you contribute to a non-Vanderbilt retirement plan through outside businesses in which you are at least a 50 percent owner, you need to complete the Internal Revenue Code Section 415(c) Aggregation Form. (This form collects information relevant to Section 415(c) of the Internal Revenue Code.)

To know if this applies to you, answer these questions:
1. Are you eligible to participate in the Vanderbilt University Retirement Plan?
2. Do you own a controlling interest (more than 50 percent) in a for-profit business, including sole proprietorship and/or consulting?
3. Do you contribute to a qualified retirement plan, such as a 401(k), 401(a) and 403(b) plans, or simplified employee pensions (SEPs) and Keogh plans, through that business?

If you answered “yes” to all three questions, please complete and submit the Internal Revenue Code Section 415(c) Aggregation Form to HR by April 1. While you are responsible for reporting your retirement contributions to the IRS, by collecting this information, we may be able to help you avoid taxes and penalties. Please see the IRS website for more information about Section 415.

If you have questions, please contact the Employee Service Center at 343.7000 or human.resources@vanderbilt.edu.