Optional Retirement Savings Plan

403(b) Plan (TSA)

All employees are eligible to participate in the 403(b) Plan.  A 403(b) Plan can be a useful part of a retirement plan and can provide tax benefits.  The amount you elect is not included in your current year's income for federal tax purposes. Each year the IRS sets the maximum contribution allowed.  There are several District-approved investment companies you can use.

The Plan website maintained by NBS, www.nbsbenefits.com/403b, will serve as a resource to obtain information about the plan.  The website includes: 

o   Plan forms

o   List of approved investment providers 

o   General information about 403(b) investing

Annual Max. Increased For 403(b) Plans For The 2013 Tax Year

Annual deferral limits have been increased by $500 for the 2013 tax year for the 403(b) Plans.  You will now be able to defer up to $17,500/year (up to $23,000 for those over the age of 50).

You Can Make Changes To Your 403(b) Deferral Amount By Filling Out A Salary Reduction Agreement And Faxing It To National Benefit Services At 1-800-597-8206.

403(b) Plan Universal Availability Notice to All Employees
View the Northshore School District Availability Notice

 Summary of Material Modifications made to 403(b) Plan, 4/2011

- NEW ROTH 403(B) OPTION FOR NSD EMPLOYEES -
Effective with the January, 2011 payroll, Northshore employees will have the option to contribute to Roth 403(b) accounts established with a vendor on the approved vendor list via payroll deduction.  Contributions to a Roth 403(b) are made with after-tax dollars.  This can be done in lieu of pretax elective deferrals or in addition to pretax dollars.  Qualified distributions from a Roth account are not included in gross income.  The current contribution limits set by the IRS apply to the combined amount of all elective 403(b) contributions (pre-tax and after-tax).  If you choose to contribute to a Roth 403(b) account, a new account must be established with that vendor prior to filling out the Salary Reduction Agreement.  

What do I need to do in order to start making elective deferrals?

Choose your vendor from the list of approved vendor(s).  Their contact information is also listed.  The financial advisor representing the vendor(s) will provide you with their form that will set up the contract or account with the vendor.  You will need to make an election regarding how much of your compensation you wish to defer to the 403(b) plan. Once you have completed paperwork provided by the selected financial advisor, you will need to fill out the Salary  Reduction Agreement  and return it to NBS to begin your payroll deduction.

Enrollment and changes can be made at any time during the year.  Before enrolling in a 403(b), employees are encouraged to compare the administrative fees charged by the different investment companies within the different invested funds. Fees can vary considerably from one fund to another within the same investment company and fees in the same fund can vary considerably from one investment company to another.  New enrollments and changes received prior to the 15th of the month will become effective on that months' payroll. If an election exceeds net salary in any month, the 403(b) deferral is automatically cancelled.  To continue participating after a cancellation, re-enrollment must be completed.

How do I make elective deferrals or investment changes?

Changes can be made by filling out the Salary Reduction Agreement.  If you choose a new vendor, you will need to set up an account with the new vendor.  The financial advisor representing the vendor(s) will provide you with their form that will set up the contract or account with the vendor. 

How much can I contribute to a 403(b) plan?

In 2013 you can make elective deferrals up to $17,500 ($17,000 for 2012).  As this amount is subject to cost of living increases as set by the government, this amount will increase over time.  In addition, if you have met certain conditions, you may have the opportunity to contribute above this limit; these contributions are known as "catch-up contributions."  The catch-up contribution is the "Age-50 Catch-up Contribution".  If you are at least age 50 by the end of a calendar year, you have the ability to contribute an additional $5,500 a year.  This amount is also subject to cost of living increases as set by the government, so it will increase over time.

When can funds be withdrawn from a 403(b) plan?

A 403(b) retirement plan is intended as a way to save over the long-term for your retirement.  Therefore, distribution of the funds are only allowed when you separate from service, are disabled, die or are at least age 59 ½.

Taking a non-taxable loan or a hardship withdrawal are options available to you should it be necessary for you to withdraw funds from your 403(b) plan prematurely.  Taking a hardship withdrawal must meet the specific requirements.  However, certain income taxes and tax penalties may apply depending on the situation.