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403(b) Plan

Welcome to your 403(b) retirement plan. View the features and highlights of your employer’s retirement plan below.

The Plan Highlights are not your plan document. The administration of this plan is governed by the actual plan documents. If discrepancies arise between this information and the plan documents, the plan documents will govern.

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Participation

Participation in the plan is open to all employees.

The plan does not allow participation by:

  • all individuals classified by the District solely as independent contractors for federal tax purposes
  • independent contractors.

All eligible employees can make contributions to the plan immediately.

Starting early has its advantages

Your contributions

You are eligible to contribute on a pretax basis, up to the maximum IRS contribution limit.

2026 contribution limit

Your contribution limit for 2026 is $24,500.

Rollovers or transfers

If you have an existing qualified retirement plan (pretax), qualified retirement plan (after-tax) or deferred compensation plan account with a prior employer, you can transfer or roll over that account into the plan on becoming a participant in the plan.

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.

Employee contributions

You may stop your contributions by giving notice to your employer prior to the beginning of the month for which the cessation of contributions is to be effective. Once you discontinue contributions, you may only start again as provided under the terms of the plan.

You can increase or decrease the amount of your contributions by giving notice to your employer prior to the beginning of the month for which the change is to be effective.

Vesting

Vesting is a participant’s right of ownership to the money in his or her plan account. You are always 100% vested in employee contributions, and rollover contributions, plus any earnings they generate.

Accessing your money 

Withdrawals

Money may be withdrawn from the plan in these events:

  • Death
  • Disability
  • Severance from employment
  • Retirement

Income taxes are payable upon withdrawal. Be sure to talk with your tax advisor before withdrawing any money from your plan account. Income taxes are not applicable for qualified Roth distributions.

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.

Loans

The plan is intended to help you put aside money for your retirement. However, Houston Independent School District has included a plan feature that enables you to access money from the plan.

  • The amount the plan can loan to you is based on rules under the tax law. All loans will be limited to the lesser of: 100% of your vested account balance up to $10,000, or 50% of your vested account balance for loans in excess of $10,000, not to exceed $50,000.
  • The minimum loan amount is $1,000.
  • All loans must generally be repaid within five years.
  • You can have two loans outstanding at a time.
  • You pay interest back to your account. The interest rate on your loan will be the Prime Rate plus 1%.
  • A $50 processing fee for all new loans and a $50 per year loan maintenance fee are charged to your account.

Other requirements and limits must be met prior to borrowing money from your account. For additional information regarding loans, please see your financial professional. 

An array of investment choices

You decide how to invest your plan account, selecting from investment choices provided under the plan, as determined by Houston ISD.

The wide array of mutual fund investment options available in your 403(b) retirement plan will 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.

To view or print a prospectus, access “Prospectuses and Other Important Materials.” The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1.800.428.2542.

RO 2933713 (06/2023)