403(b)/457(b) Retirement Savings Plans

FCPS Retirement Savings Plans are to encourage eligible employees to voluntarily set aside a portion of their FCPS pay to enhance their retirement savings or reach other long-term financial goals. TSA Consulting Group is the Administrator for our plan and there are six (6) authorized approved agents who you may contact for assistance for enrollment.

Eligibility

Most employees are eligible to participate in the 403(b) and/or 457(b) plan(s) upon hire. However, if you are a private contractor, trustee, school board member, and/or student worker, you are not eligible to participate in the 403(b) plan. If you participate in the retirement plan though FCPS, you are fully vested in your contributions and earnings at all times. You are eligible to contribute to either or both of the 403(b) and 457(b) plans.  You may contribute a maximum through payroll deduction of up to $18,000 per calendar year or if age 55 or older up to $24,000 per calendar year. YES, you can contribute $18,000 to a 403(b) and a 457(b) per calendar year or if 55 or older, $24,000 to a 403(b) and a 457(b).

403(b) Retirement Savings Plans

The 403(b) is a retirement savings program for employees of public education employers. It is a voluntary program wherein employees can contribute money to their retirement savings via pre-tax or Roth contributions in the form of a payroll deduction, and that money grows tax-deferred until retirement. There are penalties for distributions taken prior to age 59½; investment growth is tax-deferred; and approved distributions incur regular income taxes.

Please note:  While the monies you defer may be tax-deferred for Federal and state income tax purposes, you must still pay FICA & Medicare tax which is 7.65% as of 2017.

457(b) Retirement Savings Plans

The 457(b) is also for employees of public education, and is a voluntary program wherein employees can contribute money to a retirement savings account. Employees make pre-tax contributions in the form of payroll deductions, and that money grows tax-deferred until retirement. Upon taking approved distributions, you pay regular income taxes on 457(b) distributions.

The Difference between 403b and 457b Plans

The significant difference between 403(b) plans and 457(b) plans involves the distribution rules. Anyone still working at the employer that sponsors their 457(b) plan cannot take distributions until age 70½ without penalty. However, if the employee leaves that employer, the employee can take distributions at any age without penalty. A distribution from the 403(b) plan can be taken at age 59 ½ regardless if you are still employed or not.

Please refer to the 403(b)/457(b) Comparison Chart for further clarification between the two plans.

How to Enroll

To enroll in the Retirement Savings Plan, you will need to contact one of the authorized agents on the first page of the list as they may open NEW ACCOUNTS.  The grandfathered agent list may only maintain existing accounts; they are not approved to open new accounts.

Complete the appropriate 403(b) Pre-Tax, or 403(b) Roth, or 457(b) Pre-Tax Payroll Authorization Form and the Product Disclosure Form. Submit the completed form to the Benefits Office for processing.  New accounts will begin the first pay period of the next month.

Change Deductions

To make a change to your deductions, complete the appropriate 403(b) Pre-Tax, or 403(b) Roth, or 457(b) Pre-Tax Payroll Authorization Form.  Changes may be made during any pay period should you wish to increase or decrease your deductions.  The change will be effective the next pay period after your change has been received.

Loans/Hardships/Distributions/Rollovers

If you need to process a loan, hardship, distribution or rollovers from your 403(b) or 457(b) plan, please download the Information for Employees Advisors Letter and the Transaction Routing Request Form.  These documents must be sent to TSAG for processing. FCPS does not process or sign any documents.

TSA Consulting Group

www.tsacg.com

TSACG customer service representatives are available to assist you at 888.796.3786 ext. 4 or recordkeeping@tsacg.com. Please note that the Participant Transaction Department’s hours of operation are Monday – Thursday, 7:00 am – 7:00 pm (CST) and on Friday 7:00 am – 5:00 pm (CST)

Websites for Research

Choose to Save
www.choosetosave.org

IRS
www.irs.org

Social Security Administration
www.ssa.gov

Administration on Aging
www.aoa.gov

TSA Consulting Group
www.tsacg.com

Links