Tax Sheltered Annuities (403b) Plans
January 2006 Open Enrollment
When is Open Enrollment?
The months of January and September are open enrollment for
adding or changing your salary reduction contributions to
tax sheltered annuities, often referred to as TSA’s
or 403(b) plans.
What is a TSA?
Full-time regular employees are allowed to participate in tax
sheltered annuity programs through payroll deduction. With
a TSA plan, the employee determines the contribution amount
(within IRS limits) and authorizes the District to reduce his/her
income by that amount. The District then sends the contributed
amounts to the TSA company. TSA contributions and earnings
are not subject to current income tax and accumulate tax-deferred
until withdrawn.
How do I enroll?
To enroll in a tax sheltered annuity contract, you must first
contact the agent/company from the list of authorized companies
to complete the required paperwork. Upon completion of the
403(b) contract paperwork, the employee must complete a Salary
Reduction Agreement form, which is available from the TSA
agent/representative or the Human Resources Division. This
form requires both the signature of the employee and the
TSA agent/representative (T. Rowe Price does not require
an agent’s signature). The TSA agent/representative
(not the employee) must return the completed form to the
Human Resources Division.
New hires may enroll in a TSA plan within 31 days of hire;
otherwise, new hires must wait for the next open enrollment
period to participate in the program.
When can I make changes?
Changes may be made only during open enrollment, the months
of January and September of each calendar year. You may start
an annuity, change TSA companies, or change the amount of
your contributions only during open enrollment.
When can I stop my TSA contribution?
Cancellations are permitted at any time during the year. However,
you must cancel with the TSA company as well as provide written
notification to the Human Resources Benefits Department,
to avoid further payroll deductions after your contract has
ended.
Who do I contact for questions?
Please contact Brenda Edwards at (314) 345-2236 if you have
any questions.
IMPORTANT NOTE:
While employees may contribute to more than one TSA company,
there are maximum contribution limits as prescribed by the
Internal Revenue Service. Employees are advised to seek professional
consultation regarding TSA contribution limits.
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