PERSONAL RETIREMENT SAVINGS ACCOUNTS
The School District encourages employees to develop a personal retirement savings plan by providing information and materials concerning supplemental retirement plans. It is the District’s intention that employees utilize these resources to help plan for their future financial needs. The following materials and services will be provided annually (usually distributed during the first quarter of the year):
◦ Education Videos
◦ Personalized Retirement Benefit Guides
◦ Maximum Allowable Contribution (MAC) Amounts
◦ Information on Providers of Employee Accounts
Tax deferred retirement plans are available to employees of public education employers and are commonly referred to as Tax Sheltered Accounts or TSA’s. They are designed to allow tax-deferred contributions through salary reduction. The amount deducted from the employee’s check is commonly referred to as an elective deferral. All regularly scheduled employees may elect to contribute a limited portion of their salary before income taxes to one of the authorized plans available through their employer.
The advantages of participating in a TSA are numerous:
◦ Immediate income tax savings
◦ Pre-tax dollars deposited into individual accounts
◦ Automatic payroll contributions
◦ High annual contribution limits
◦ Beneficiary provisions
◦ Account portability
◦ Lifetime income options
Participation in these plans is a great way to take advantage of tax deferral and the power of compounding. Employees have the ability to select the provider and plan that best fits their needs. Employees may enroll in a 403 (b) account or a 457(b) deferred compensation plan at any time. Once employees have decided on a provider, they can choose the exact amount that they want reduced from each paycheck to fund their account. The agent or provider selected will assist in completing the proper paperwork necessary to start salary reductions.
Click here for a list of agents/providers that have been approved by the District. You will need to contact them directly.