403(b) plan
Welcome to your 403(b) retirement plan. Click below to view the features and highlights of your employer’s retirement plan.
The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.
An excellent way to save for retirement
Employees of Chicago Public Schools (CPS) who normally work 20 hours or more per week are eligible to make elective deferrals by salary reduction.
Employee contributions
You may contribute as much as 100% of your annual compensation up to the maximum IRS contribution limit. You may increase, decrease or stop your contributions at any time.
Catch-up contributions
You may qualify for a higher level of elective contributions than those described above if certain requirements are met:
PRETAX OR ROTH 403(B) CONTRIBUTIONS
You have a choice regarding your elective contributions. You can direct all of your contributions to a traditional pretax account, to a Roth account or to a combination of the two. Contributions to a Roth account are after-tax. Regardless of your election, you are subject to the annual contribution limits detailed previously.
Withdrawals
Your plan was established to encourage long-term savings. A 403(b) plan has less stringent withdrawal restrictions while you are employed; however, a 10% federal tax penalty can apply to withdrawals prior to age 59½.
A distribution may be made in these events:
- Attaining age 59½
- Retirement or separation from service*
- Your death or total disability
- Hardship withdrawals (from employee contributions only)
Please consider, income taxes are payable upon with withdrawal from pre-tax 403(b) accounts. Withdrawals from Roth 403(b) accounts are generally tax free if your account has been open for at least five years and you have reached age 59½.
In addition, the Internal Revenue Service (IRS) requires you to take Required Minimum Distribution (RMD) withdrawals from your retirement account(s) annually beginning the year you reach the RMD eligible age. RMD eligible age is:
- Age 73 if you were born January 1, 1951, or later (The RMD eligible age will increase to age 75 after December 31, 2032)
- Age 72 if you were born after June 30, 1949, and before January 1, 1951 (For individuals turning age 72 in 2023, no RMD payment is required in 2023)
- Age 70 ½ if you were born before July 1, 1949.
* Distributions where the employee retires or separates from service at or after age 55 are not subject to the 10% early withdrawal federal tax penalty.
Important considerations before deciding to move funds either into or out of a Corebridge Retirement Services account
There are many things to consider. For starters, you will want to carefully review and compare your existing account and the new account, including: fees and charges; guarantees and benefits; and, any limitations under either of the accounts. Also, you will want to know whether a surrender of your current account could result in charges. Your financial professional can help you review these and other important considerations. Consult a tax professional before making a decision to move funds either into or out of a Corebridge account.
Loans
Tax-free loans make it possible for you to access your account without permanently reducing your account balance. Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal tax penalty if you are under age 59½.
Please note, you may only have active loan outstanding at a time.
An array of investment choices
You decide how to invest your plan account. The following funds are available in your retirement plan. They provide you with the flexibility you need to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.
- ANNUITY FOR 403(b) PLAN: View the entire list of funds and performance. (Please note, it may take a few minutes to load the performance.)
- MUTUAL FUND FOR 403(b) PLAN: View the entire list of funds and performance.
To obtain a Portfolio Director prospectus and underlying fund prospectuses, click here or call 1.800.428.2542 and follow the prompts. The prospectuses contain the investment objectives, risks, charges, expenses and other information about the respective investment company that you should consider carefully before investing. Please read the prospectuses carefully before investing or sending money. Policy Form Series UIT-194, UITG-194 and UITG-194P.
RO2767020(03/2023)