403(b)
As a school district employee, you have the opportunity to participate in special savings and investment programs unavailable to the general public. One program, called a
403(b) Tax-Sheltered Account (TSA), invests your payroll-deducted contributions into an annuity or custodial account. You do not have to pay income tax on the amount you
contribute, or on any subsequent dividends earned, until the funds are distributed to you. You can start your contributions with as little as $50 per month and increase
them up to $16,500 in 2009 for both
457(b) Deferred Compensation Plans and 403(b) TSA plans, totaling up to $33,000 annually.
Under certain conditions the maximum may be even greater.
SchoolsFirst FCU is proud to be the 403(b) TSA administrator for many eligible school districts.
- Get Retirement Plan Forms
403(b) Plan Features
- Primarily employee-funded
- Contributions are on a pre-tax and tax-deferred basis
- May allow loans
Eligibility Requirements
- Immediate eligibility for all full-time school district employees and part-time employees working at least 20 hours per week
Plan Contribution Limits
- 2009—100% of includible compensation or $16,500, whichever is less
- Catch-up contribution for age 50 or older is $5,500 for 2009
- Employees with 15 or more years of employment with their current employer may be eligible to contribute an additional $15,000 over 5 years under a special catch-up rule, not to exceed $3,000 per year
Distribution Events
- Attainment age of 59˝*
- Hardship, disability or death
- Qualified Domestic Relations Order (QDRO)
Mandatory Distribution Requirements
- Age 70 ˝ or severance of employment, whichever is later
As a SchoolsFirst FCU Member, you can participate in a
complimentary consultation with one of our Retirement Plan Advisors. Our experienced advisors can help you learn more about 403(b) programs, evaluate your current investment portfolio and offer creative investment solutions to help meet your goals, your lifestyle, and your family’s budget.
You can
arrange a meeting in person at any branch or discuss your investment needs over the phone by calling 714/258-4000, Monday through Friday from 9 a.m. to 5 p.m.
*Eligible distributions that are not directly rolled into another eligible retirement plan are subject to a mandatory 20% federal tax withholding.
*Representatives are registered, securities are sold, and investment advisory services are offered through CUNA Brokerage Services, Inc. (CBSI), member
FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) 512-6109. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value, and are not obligations of or guaranteed by SchoolsFirst FCU. CBSI is under contract with SchoolsFirst FCU, through the financial services program, to make securities available to Members.
CUNA Brokerage Services, Inc. is a registered broker/dealer in all fifty states of the United States of America.
