According to CCC records, the following apply to the Ukiah School District 403(b) Tax Sheltered Annuity (TSA) and 457(b) Deferred Compensation Plan (DCP):
- Roth contributions are allowed in the 403(b) Plan? No
- A 457(b) Deferred Compensation Plan (DCP) is offered to employees? No
- Roth contributions are allowed in the 457(b) Plan? No
- CCC provides administrative services for the 457(b) Plan? No
A copy of the draft eligibility and limits announcement CCC distributed to Ukiah School District based on the above CCC records appears below in slightly modified format.
2014 403(b) TSA Plan Announcement
Supplemental Retirement Saving Opportunity - The 403(b) TSA Plan
Your Employer offers an excellent program through which you may contribute a portion of your current income into supplemental retirement savings accounts. Your Employer’s supplemental retirement savings program is offered under Section 403(b) of the Internal Revenue Code and is called the Tax-Sheltered Annuity Plan (“TSA Plan”).
All part-time and full-time employees are eligible to contribute to the TSA Plan.
You may begin participating in the TSA Plan at any time, by first establishing an investment account with an approved investment provider, and then completing a salary reduction agreement, signing it, and submitting it to your payroll office.
Dramatic Changes Became Effective January 1, 2009
The IRS published Final 403(b) Regulations during July of 2007 that dramatically changed the way 403(b) Plans must be structured and administered. As a consequence, both your Employer and all of the investment providers (“Vendors”) under the TSA Plan must follow a new and expanded set of rules. Your Employer has adopted the services of Carruth Compliance Consulting, Inc. (CCC), an independent third party administrator, to provide limited compliance services.
Resulting Discontinuation of Most Optional Features
Under the new Regulations, administration of a full-featured 403(b) TSA Plan involves significant expenses. Your Employer has determined that it would not be cost effective to continue a 403(b) TSA Plan with all of the optional features allowed by law. Specifically, administration of loans, hardship distributions, and the 15 years-of-service catch-up provision would require outlays of Employer resources that cannot be justified. Consequently, your Employer has adopted the CCC “Plan Document Only Services,” with the result that your Plan will have exactly two optional features, as follows:
- Age 50+ Catch-Up Provision (see the Contribution Limits section below)
- In-Service Distributions After Age 59-1/2
Optional Feature 2 above allows participants who reach age 59-1/2 to be eligible for distributions from their accounts, irrespective of their employment status.
Effective as of January 1, 2009, you were able to begin and/or continue contributions to TSA Plan accounts, but you were not able to withdraw, exchange, or transfer accumulated benefits until you become eligible for a distribution. Distributable events include:
- Attainment of age 59-1/2
- Severance from employment
Contribution Limits for 2014
The basic elective deferral limit for 2014 is the smaller of $17,500 and 100% of your compensation.
If your 50th birth date occurs on or before December 31, 2014, you are eligible to defer an additional $5,500, provided your compensation is large enough to allow the extra deferral.
Contact the District Office for Additional Information