403(b) plan
Plan details
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.
Take advantage today
403(b) Voluntary Plan, Matching Savings Plan and Special Pay Plan Eligibility
All employees are immediately eligible to contribute money to the 403(b) retirement plan.
Starting early has its advantages
403(b) Voluntary Plan, Matching Savings Plan and Special Pay Plan
Employee contributions
If you are eligible for both, you may combine the age-based and service-based catch-up contributions to save more. However, your total combined catch-up contributions cannot exceed the IRS maximum.
Employer matching contributions
Employees receive matching contributions at a rate of 25% of employee contributions that do not exceed 1% of eligible compensation. Employee matching contributions are made to the Match Savings Plan.
Employer contributions for unused accumulated sick leave
Upon termination of employment, Spring Branch ISD makes contributions to the plan for unused accumulated sick leave. The amount of the contribution is determined by a SBISD School Board Policy.
Vesting
You are always 100% vested in your employee contributions and sick leave contributions.
You will become vested in your employer matching contributions based on the following schedule.
Vesting schedule
Years of Service | Vesting Percentage |
1 | 0% |
2 | 0% |
3 | 50% |
4 | 75% |
5 | 100% |
Accessing your money before retirement
403(b) Voluntary Plan, Matching Savings Plan and Special Pay Plan
Withdrawals
You can withdraw vested money from the plan in these events:
Attainment of age 59½
Separation from service for retirement
Death
Taxes are payable upon withdrawal and a 10% penalty may apply to withdrawals prior to age 59½.
Early withdrawal penalty does not apply in certain circumstances such as:
Attainment of age 59½
Death or disability
Separation from service at age 55 or older
Substantially equal periodic payments over life expectancy taken for a period of 5 years or attainment of 59½, whichever is longer.
Early distributions
Distributions made prior to attaining age 59½ are subject to ordinary income tax and possibly a 10% income tax penalty.
Hardship withdrawals
Your plan allows you to withdrawal part of your account in the event of financial hardship. A hardship is defined as an immediate and heavy financial need for which you lack other reasonably available resources.
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.
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
You may take advantage of a tax-free loan from your Corebridge Retirement Services account. This provision gives you access to cash without permanently reducing the value of your accounts. It is especially attractive since it's not subject to federal withdrawal restrictions imposed on plan distributions prior to age 59½. Your financial professional can provide information regarding maximum loan amounts and loan repayment terms. Keep in mind, however, defaulted loan amounts will be taxed as ordinary income and tax penalties may apply.
An array of investment choices
The following investment options 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.
View the entire list of funds and performance. (Please note: It may take a few minutes to load the performance.)
To obtain either a contract or underlying fund prospectuses, visit corebridgefinancial.com/retirementservices or call 1.800.428.2542 (press 1, then 3). The prospectus contains the investment objectives, risks, charges and expenses, and other information about the investment company, which you should consider carefully before investing. Please read the prospectus carefully before investing or sending money.
RO 2767020 (3/2023)