403(b) and 457(b)

Significant Legislation Impacting 403(b)/457(b) Plans 

In light of the COVID-19 pandemic, significant legislation (CARES Act) impacting 403(b)/457(b) plans has been passed to help relieve financial stress during these unprecedented times.

Letter from TDS Regarding the CARES Act

The Coronavirus Aid, Relief and Economic Security Act 


Plan Setup or Plan Change Instructions

403(b) and 457(b) Annual Elective Deferral Limits

IRS Announces 2020 Contribution Limits

The IRS has recently announced the 2020 Maximum Allowable Contribution (MAC) limits for 403(b) and 457 plans. Elective contribution limits have increased from their 2019 levels.

The elective deferral limit for 403(b)/457 plans will now stand at $19,500/annually. Employees age 50 and over will be entitled to contribute an additional $6,500/annually to their 403(b) or 457 plan(s), thereby increasing the elective deferral limit to $26,000/annually.

Individuals with at least 15 years of service with their current employer may be entitled to contribute up to an additional $3,000 above their age-based limit, potentially increasing the limit to $29,000 for a participant utilizing both the age based and the full amount of the service based catch-up provisions. If interested, please complete and submit the 403b Service Based Catch-up Request Form.

2020 annual elective deferral limits for 403(b) and 457(b): $19,500
Age 50+ catch-up: $6,500

See the attached 403(b)/ 457(b) Comparison Chart.


New: Online Forms. All Salary Reduction Agreement (SRA)/Salary Amendment Agreement (SAA) requests must be submitted online


403(b) Instructions

403b Plan Adoption Agreement (restatement March 2020) 

403b Summary Plan Description

Do Your Research

To get a perspective of the many investment providers available, visit the website 403bcompare.com, operated by CalSTRS, to provide comprehensive, unbiased information for Marin Community College District. Contact the TDS Group, your District’s plan administrator, at 
(866) 446-1072 for more details.

403(b) Instructions

Step 1: Go to the 403bcompare.com

Step 2: Review the list of approved 403(b) vendors that partner with Marin Community College District. 

Step 3: Select a Vendor. 

Step 4: You and/or your Financial Advisor contact your Vendor of choice to establish an investment account. 

Step 5: All requests must be submitted Online. Click on 403(b) Online SAA to get started. When completing the online data please READ INSTRUCTIONS CAREFULLY, as you are making changes to your paycheck!  Once you have successfully submitted your changes, TDS will provide you with a confirmation number. Manual forms will no longer be accepted. For the end of month payroll and the mid-month payroll, every attempt will be made to process requests on the next payroll, if the request is received by the District by the 15th of the month. 

Changes to Your 403(b) Account

Use the 403(b) Online SAA to adjust your contributions. If you are making a one-time change, you will also need to submit another 403(b) Online SAA to change your contribution with an effective date.  

Individuals with at least 15 years of service with their current employer may be entitled to contribute up to an additional $3,000 above their age-based limit, potentially increasing the limit to $29,000 (in 2020) for a participant utilizing both the age based and the full amount of the service based catch-up provisions. If interested, please complete and submit the 403b Service Based Catch-up Request Form.

Roth (after-tax contributions)

Go to the 403(b) Compare Vendor Listing Roth which lists the vendors that allow Roth plans.

For employees to start Roth contributions the following steps are required:

Step 1: Select a vendor from the list of approved Roth vendors.

Step 2: Contact the vendor that you select and obtain their account application to open a Roth account.

Step 3: Complete and submit the account application to the vendor to open the account.

Step 4: All requests must be submitted Online. Click on 403(b) Online SAA to get started. When completing the online data please READ INSTRUCTIONS CAREFULLY, as you are making changes to your paycheck!  Once you have successfully submitted your changes, TDS will provide you with a confirmation number. Manual forms will no longer be accepted. For the end of month payroll and the mid-month payroll, every attempt will be made to process requests on the next payroll, if the request is received by the District by the 15th of the month. 


457(b) Instructions

457b Summary Plan Description

You may open a 457(b) account with CalSTRS Pension2, National Life Group/Life Insurance Company of the Southwest (LSW), Security Benefit Group (SBG) or Valic. See the contact information below.

AIG Retirement Services (formerly VALIC) – 457(b)

Plan ID: 02212
Phone: (800) 853-6399
Fax: (877) 202-0187

CALSTRS Pension2 (Voya is Record Keeper)

Plan ID: 401894
Toll Free Phone:  (844)  353-2872
Fax Number: (888) 814-5862
Website

National Life Group/Life Insurance Company of the Southwest (LSW) - 457(b)

Plan ID: A4806
Phone: (800) 579-2878
Fax: (214) 638-9170

Security Benefit (SBG) - 457(b)

Plan ID: 613893
Phone: (800) 888-2461
Fax: (785) 368-1772

Step 1: Select a Vendor.

Step 2: You and/or your Financial Advisor contact your Vendor of choice to establish an investment account. 

Step 3: All requests must be submitted Online. Click on the 457(b) tab, then click on the 457 Online SAA option.  When completing the online data please READ INSTRUCTIONS CAREFULLY, as you are making changes to your paycheck!  Once you have successfully submitted your changes, TDS will provide you with a confirmation number. Manual forms will no longer be accepted. For the end of month payroll and the mid-month payroll, 457b changes made in one month will be effective on the following month's payroll. 

The Final Three Year 457b Catch-Up may be available to an employee based on calculation qualification within the last three years prior to retirement, assuming they are retiring at or after the normal retirement age of 63. It is not allowed to be used in the year they will retire. For instance, if an employee plans to retire in 2023 the catch up is available to them (per qualification) in 2020, 2021, and 2022. If it is used in 2020 and they skip 2021 they are not allowed to use it in 2022. The idea of the catch-up is to allow for employee’s to “make-up” any contributions they didn’t defer within their employment.

To qualify the employee needs to complete the 457(b) Final Three Year Catch-up Request Form. The online 457(b) Final Three Year Catch-up Request Form is also available.


TDS Financial Advisor

If you do not have a Financial Advisor or if you have any specific questions, please contact TDS Plan Education/Customer Service at:

(866) 446-1072

Or

plan-education@tdsgroup.org

You may also choose an Authorized TDS Representative from this list.