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403(b)  Tax-Sheltered Annuity Plans 

South San Antonio ISD 403(b) 457 Plans are pleased to announce the 403(b/457 retirement plan as an added benefit to our employees. The plan will be administered by a Third-Party Administrator called National Benefit Services. The 403(b)/457 retirement plan acts very similar to a 401(k) plan and provides several benefits including:

 

  • Contributions to the plan are tax deductible meaning that you do not pay taxes on contributions made to the plan. This also reduces income tax expenses and may very well reduce your tax bracket. Taxes will be paid on the funds when taken from the account at retirement.
  • Roth contributions can be made, but taxes are paid at the time of contribution. Account balances grow over time, and taxes are not paid on the contributions nor on the interest earned on the account once it is taken out.
  • Loans or Hardship/Unforeseeable Emergency withdrawals can be taken from the account if certain circumstances are met. This will slow the path to retirement but can provide financial relief in a time of need.
  • Contribution limits are much higher at $24,500 than the limits in IRAs ($8,000).

 

We are excited to offer this valuable benefit to our employees and encourage everyone to participate. Please note, for employees with current 403(b) and/or 457(b) accounts and contributions, no change is necessary. Contributions will continue to flow normally. In order to establish a new 403(b) and/or 457(b) and begin contributions, please follow the steps below:

 

  1. Determine which company you would like to invest your contributions with. A list of Approved Vendors can be found by accessing the NBS website: http://www.nbsbenefits.com/non-erisa-403b-forms/
  2. Contact the Approved Vendor of your choosing directly, to obtain and submit all necessary paperwork to open your account.
  3. Once your account is established with the Approved Vendor, complete a Salary Reduction Agreement (see NBS website link above) and submit it to National Benefit Services. *Please note that SRAs need to be submitted to NBS by the monthly SRA Processing Date reflected on the NBS website, in order to be processed and updated timely.

 

The attached Universal Availability and Plan Highlights Notice will give you basic information about the plan features. Please review and if you have any plan-related questions, you may contact NBS Customer Service Center at:

 

Phone: 800.274.0503 option 5, 2

E-mail:  403bsupport@nbsbenefits.com