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Tax Deferred Annuities Frequently Asked Questions

Tax Sheltered Annuities

What is a 403(b) and/or 457(b)?

These are supplemental voluntary retirement plans.  There is no matching contribution made by OCPS.

-A 403(b) account is funded with pre-tax contributions from the participant.  The participant's taxable income is lowered and as a result pays less in income tax in the year contributions are made.  Taxes are paid (on both the contribution and income earned in the account) when funds are withdrawn.  If you are under the age of 59 1/2 when a distribution is taken there may be an additional 10% penalty.

~A Roth 403(b) is funded with after tax contributions from the participant.  The participant does not receive a tax deduction in the year that contributions are made.  However, withdrawals are not taxable (neither the contribution nor income earned in the account if all requirements are met.

~The  457(b) accounts are tied to your employer which means upon separation of service, you can access the funds without the additional 10% tax penalty. A traditional 457(b) is funded with pre-tax funds from the participant.  The Roth 457(b) plan allows participants to contribute to their 457 account on an after-tax basis.  The participant will not pay taxes on qualifying distributions when the money is withdrawn from a 457(b) account.


What supplemental retirement savings plans does OCPS offer its employees?

~OCPS offers 12 authorized TSA providers for the following:
Traditional and Roth 403(b)'s
Traditional and Roth 457(b)'s

Authorized Provider Products Offered



Please click on the link below to see all available companies and applicable forms:
OCPS Authorized Providers & Forms

An employee can self-direct (invest on their own without an agent) through one of the following companies:

IPX_American Century Services, LLC
Fidelity Investments
TIAA-CREF
Vanguard Investments

An account must be set up with the authorized provider before contributions are taken from an employee's payroll.

*If an employee self-directs, the appropriate salary reduction agreement form and memorandum (that a contribution comes out of every check even in the summer) is required by Retirement Services to process your request.

An employee can go through an authorized agent for one of the authorized OCPS TSA providers to set up an account:

AXA
Great American
National Life Group
Plan Member Services
Reliastar
Security Benefit
AIG Retirement Services (VALIC)
Voya Financial

**If an employee uses an authorized company which uses an agent, then the agent will supply the appropriate salary reduction agreement form, product disclosure and memorandum to Retirement Services in order to process your request.

Are there different MAC limits between Traditional vs Roth accounts?

~Traditional 403(b) and Roth 403(b) accounts use the same combined maximum allowable contribution (MAC) limits for the calendar year.

2024
403(b) Basic Limit                                        $23,000
403(b) Only Service Based                          $3,000
(15 or more yrs with current 
employer)*
Age Based - age 50 or older by 12/31       $7,500
Total combined 403(b) MAC limit              $33,500

* There are 3 criteria that have to be met:

  1. The employee must have at least 15 years of service with the district.
  2. The employee cannot have met their lifetime contributions in this provision of $15,000.
  3. The employee’s average contribution cannot be $5,000 or greater.
_________________________________________________

457(b) Basic Limit                                              $23,000
Age Based (age 50 or older by 12/31)            $7,500 
Total combined 457(b) MAC limit                   $30,500
          

What is Quick Enroll?

~Quick Enroll process allows the employee to start contributions to a traditional 403(b) using the employee's electronic signature.  An employee may research 7 of the 12 current traditional 403(b) providers by viewing their websites through the quick enroll process.  The employee may go through the employee self service portal; select Benefits; scroll to the bottom of the screen for the link.  If an employee uses quick enroll, a traditional 403(b) is set up along with a completed SRA form (authorizing a specific dollar amount per check) and a signed memorandum (advising of TSA contributions deducted from each check).  An authorized TSA provider will contact the employee to set up investment options for funds to be deducted from the employee's check.  If investment options are not set up then the money will be returned and contributions will be stopped.  The 7 traditional 403(b) companies currently available through quick enroll are:
1) IPX_American Century Services, LLC
2) AXA
3) National Life Group (LSW)
4) Plan Member Services
5) Voya Financial
6) Security Benefit Group
7) AIG Retirement Services( VALIC)

 

Can I roll my previous retirement account into a 403(b) or 457(b)?

Yes, if it is a similar pre-tax account to pre-tax account or after-tax to another after tax account.  You can't mix pre-tax with after-tax money. This would be a question for the new investment provider to ensure that money can be rolled into the new account being established under OCPS.

You can also roll previous retirement accounts to the FRS Investment Plan which is a defined contribution plan. 

You can not roll retirement money into the Pension Plan which is a defined benefit plan.
~ The employee can submit the appropriate salary reduction agreement form (SRA) to our office for processing.  Using the form, the employee can make the change to a specific paycheck.

~ The employee can go thru employee self-service - Employee Self- Service (where you view your paycheck; under Benefits; then Anytime Plan Changes to make changes to your existing TSA contribution.  Once the change is made and saved then it will go into effect on the next scheduled paycheck to be processed for the employee.

~The employee can make as many changes to their existing TSA contribution as they want.

~The TSA contribution comes out of every paycheck unless the employee makes a change even in the Summer.

Written assistance:  Directions on changing your TSA contribution amount
Video assistance:  Video Tutorial for changes to your TSA contribution


An employee can self-direct (invest on their own without an agent) through one of the following companies:

IPX_American Century Services, LLC
Fidelity Investments
TIAA-CREF
Vanguard Investments

An account must be set up with the authorized provider before contributions are taken from an employee's payroll.

*If an employee self-directs, the appropriate salary reduction agreement form and memorandum (that a contribution comes out of every check even in the Summer) is required by Retirement Services to process the request.

OCPS Authorized Providers & Forms
Paper enrollment requires an authorized TSA agent who can write business within OCPS.  The authorized TSA agent will have the required forms necessary to start your TSA contribution.

An account must be set up with an authorized provider before contributions are taken from an employee's payroll.

**If an employee uses an authorized agent, then the agent will supply the appropriate salary reduction agreement form, product disclosure and memorandum (that a contribution will come out of every check even during the Summer) to Retirement Services in order to process your request..
~You should check with your co-workers to see what agent they are pleased with or you can contact Retirement Services at 407.317.3227 or via email [email protected] to obtain 2-3 names and phone numbers of authorized agents for a particular company that you maybe interested in opening up an account. Selecting a company and/or agent is a personal decision.
Since the authorized TSA agent list is ever changing, we don't post this list.
~Yes, you can roll previous retirement accounts to the FRS Investment Plan which is a defined contribution plan. 

No, you can not roll retirement money into the Pension which is a defined benefit plan.


~All employees are eligible to participate in the 403(b) and/or  457(b) plans immediately upon employment.

~Most employees are eligible to participate in the 403(b) and /or 457(b) plans(s) upon hire.  However, if you are 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 a supplemental retirement plan through your employer, you are fully vested in your contributions and earnings at all times.


~Please be aware that TSA Consulting Group, Inc. is our third party administrator  who is responsible for processing your transactions, maintaining records, and keeping your employer's plan in compliance with IRS regulations.  Your agent can assist you regarding this process as well.

You will need the company's completed paperwork (that has your money) and TSACG appropriate paperwork for processing your request. 

TSACG Toll-Free Phone: 1-888-796-3786, Option 4
TSACG Email:  [email protected]
TSACG Fax#'s:  1-866-741-0645 or 1-866-814-0622

Retirement Services does not sign any TSA paperwork.