Roth 403(b)
In addition to our traditional savings and investment plans, we now offer a Roth 403(b) plan for Orange, San Bernardino and LA County school employees.* Much like the Roth IRA, Roth 403(b) plan contributions are made on an after-tax basis, and allow for tax-free growth and tax-free withdrawals if the distributions are made after the age of 59 ˝ and the account has been open for at least five years.
The key differences between the Roth 403(b) and Roth IRA are:
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Roth 403(b)
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Roth IRA
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Income Limits
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No income restrictions
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$120,000 if single;
$176,000 if married and filing jointly
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Contribution Limits (2009)
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$16,500
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$5,000
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Age 50 Catch-Up Contributions
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$5,500
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$1,000
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To maximize your retirement savings, you can choose to participate in a Roth 403(b) plan in addition to a traditional
403(b) Tax-Sheltered Account and/or a
457(b) Deferred Compensation Plan.
You can contribute as little as $50 per month, up to a maximum of $16,500 in 2009 for Roth 403(b) and
traditional 403(b) plans, plus an additional $16,500 for 457(b) plans, with a combined maximum annual contribution of $33,000.**
Under certain conditions the maximum may be even greater.
SchoolsFirst FCU is proud to be the Roth 403(b) administrator for many eligible school districts.
- Get Retirement Plan Forms
Roth 403(b) Plan Features
- Employee-funded
- Contributions are made on an after-tax basis
- Earnings are tax-free
- May allow loans
Roth 403(b) Eligibility Requirements
- Immediate eligibility for all full-time Orange County 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
- Employees with 15 or more years of employment with their current employer may be eligible to contribute an additional $15,000 over 5 years, not to exceed $3,000 per year
- Age 50 or older can make an additional catch-up contribution of $5,500
Distribution Events
- 5 years and attainment of age 59 ˝
- Hardship, disability, or death
- Qualified Domestic Relations Order (QDRO)
- Severance of employment with sponsoring employer
Mandatory Distribution Requirements
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 the retirement options available to you, evaluate your current investment portfolio, and offer creative solutions to help meet your goals, your lifestyle, and your family’s budget.
You can
schedule an appointment in person at any
branch or discuss your investment needs over the phone by calling 714/258-4000 or 800/462-8328, Monday through Friday, from 9 a.m. to 5 p.m
*Available in participating districts for which we are the 403(b) administrator.
**Combined maximum annual contribution of $33,000 (plus any applicable catch-up contributions) if contributing to both a 403(b) AND 457(b) plan. Maximum annual contribution to traditional and Roth 403(b) plans cannot exceed $16,500 when combined.
*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.
