Tax Sheltered Annuities

Please note that althought there will be 27 payrolls for certified staff in 2014, we will only take TSA deductions over 26 payperiods.

 

Enrollment Procedures for Roth 403(b), Tax Deferred 403(b) and 457 Plans

Notice: There can be no changes in Service Providers for 403(B)s or 457's after November 1 each year unless it is accompanied by proof that the account is established. Changes to Service Providers may resume beginning January 1. We will accept changes in dollar amounts to your TSA at any time.

The following is the enrollment procedure for tax sheltered annuity payroll deductions. These procedures must be followed or your TSA request will be returned to you.

  1. Any new requests for, or changes to, an existing tax sheltered annuity or a Roth 403(B), must be made on the  Salary Reduction Agreement forms which can be found either on the link on this page or  in Sharepoint under Shared Documents, Business Department, 403B Forms and Information.  Please forward all forms to the Payroll Department. Allow enough time for payroll to receive and process the information. We will not process any TSA's unless submitted on the correct forms.  Forms for the 457 plan are available at this website under 457 Forms and Information.
  2. An annuity enrollment or change in deduction can only be made twice during any calendar year. 
  3. If you are retiring, there will be an opportunity to make an additional change to your deduction that will affect your summer and severance checks only. Funds deposited with a Roth 403(b), tax deferred 403(b) or 457 plan, can only be made from funds received by the individual within 75 days of retirement.  A  letter was emailed to all teachers and administrators who expressed their intent to retire during the current year.  You can find a copy of this letter in Sharepoint under Shared Documents, Business Department, 403B Forms and Information.
  4. Contribution Limits have been expanded. Please refer to Contribution Limits for details.
  5. You can only make contributions to one annuity company at a time per plan. However, you can contribute to a Roth 403b, a 403b and a 457. These do not have to be with the same service provider.

 

A list of Service Providers for 403B investments can be found at Service Providers List or on the Salary Reduction Agreement. You must first setup your account with the Service Provider prior to the first payroll in which the change is to be made. If the Service Provider has not yet established an account for you, they will return the deduction to the business office. This will cause a delay in any postings to your TSA account and may result in tax consequences.

It is the employee's responsibility to insure that the contributions are properly posted to their annuity account. Please review the statements you receive from your annuity company. Notify payroll immediately if there are any discrepancies.

It is the responsibility of the employee to make sure that they do not exceed the contribution limits for any TSA plan in which they participate. There are tax penalties associated with violation of these limits.

Please contact Corinne Eisenstein, Kelly Gontarz or Kelly Altmannsberger in the Business Office if you have any questions concerning this payroll procedure.