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403(b) Tax Deferred Savings Plan

The District’s Tax-Sheltered Annuity Program allows employees to make pre-tax contributions to a Code Section 403(b) annuity or custodial account.

The 403(b) program is intended as an additional retirement savings plan. The program allows employees to defer a portion of their taxable income from federal and state withholdings. In addition, employees do not pay current taxes on investment earnings during the accumulation period. Once an individual begins to withdraw money from the annuity or custodial account, the withdrawal then becomes taxable. Distribution of 403(b) funds can begin as early as age 59 ½ and minimum distribution must begin at age 70 ½.

Any employee who is employed for 20 hours or more per week on a regular basis may invest in a 403(b) so long as that employee agrees to contribute at least $10.00 per month to the 403(b). The maximum amount that may be contributed is governed by Internal Revenue Service regulations. It is the responsibility of employees and their financial consultants to ensure that all tax regulations are met.

The District will accept new enrollment or adjustments to current elections on an open enrollment basis. New enrollments or changes must be submitted to the Compensation & Benefits Office 30 days prior to pay date.

To start a 403(b):

1. Contact your financial consultant or the company he/she represents.
2. Complete an application for a 403(b) from the investment company you select.
3. Request a Modification of Employment Contract from the Compensation & Benefits Office.

 

The two forms needed in the Compensation & Benefits Office are:

1. A copy of your 403(b) application and
2. A completed Modification of Employment Contract.
(see Tax Deferred Savings 403(b) booklet for more details. Contact Compensation and Benefits for the booklet.)

403(b) Vendor Listing
403(b) Plan Document Booklet