- How do I make contributions?
- May I contribute from a checking or savings account?
- How much can I contribute?
- Are loans available to me?
- When can I take money out?
- What is a Plan Administrator?
Contributions must be made through payroll. A salary reduction agreement is required and will inform your employer of your decision to participate. You can change the amount of your contributions by completing a new salary reduction agreement.
No. All 403(b) contributions must be made on a pre-tax basis through payroll.
The IRS sets annual deferral limits on how much may be contributed. Special catch-up provisions apply for participants over age 50 and for longevity of service with the same employer. A retirement specialist will assist you in calculating the Maximum Allowed Contribution.
If the 403(b) plan allows, loans are permitted to individuals. The plan sponsor must approve loans in advance. Loan limits apply and are aggregated with any other loans in 403(b) accounts within the plan.
You can take distributions from the 403(b) plan at age 59½, if you are fully disabled, or at separation of service (10% IRS penalty may apply). Distributions due to financial hardship may be available. Please check with the Plan Administrator for eligible hardship distributions and be able to provide any supporting documentation of the hardship. All distributions must be approved by the plan administrator.
Most school districts engage a third-party administrator (TPA) to establish and manage their 403(b) plan document to ensure compliance with IRS rules and guidelines. A school district’s benefit office can provide you with information regarding their TPA.