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Take advantage today

You are immediately eligible to begin contributing to either or both plans.

Starting early has its advantages

Employee contributions

2024 contribution limit

Your contribution limit for 2024 is $23,000.

Catch-up contributions

2024 catch - up contributions

> An additional $3,000 if you have 15 more years of service and have undercontributed in prior years, and 

> An additional $7,500 if you are age 50 or older.

Stop/change contributions

You can change your contribution amount or discontinue contributing to your plan at any time and resume contributing again later. In the meantime, your account will continue to grow on a tax-deferred basis. Please allow one month’s notice for processing.

Pretax or Roth contributions

You have a choice regarding your elective contributions to your workplace 403(b) plan. 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 above.

Vesting

Vesting refers to your “ownership” of a benefit from the plan. You are always 100% vested in the contributions you make to your account and in your rollover contributions, plus any earnings they generate.

Accessing your money before retirement

Withdrawals

Generally, depending on your employer’s plan provisions, you can withdraw from your account balance if you meet one of the following requirements:

  • Attainment of age 59½

  • Your retirement

  • Your death or disability

  • Severance from employment

  • Immediate financial hardship

Remember that income tax is due at withdrawal, and withdrawals from your 403(b) account prior to age 59½ are subject to federal restrictions and a 10% federal tax penalty.

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.
Distribution options

Depending on your employer’s plan provisions, your withdrawal options include:

  • Transferring your vested account balance to another tax-advantaged plan that accepts rollovers

  • Receiving systematic or partial withdrawals

  • Taking a lump-sum distribution

  • Choosing one of the many annuity options available from Corebridge  Retirement Services, inside the plan or via rollover

  • Required Minimum Distribution (RMD) withdrawals

Generally, income taxes must be paid on all amounts you withdraw from your plan. Federal restrictions and a 10% federal tax penalty may apply to withdrawals prior to age 59½. 

Qualified distributions from a Roth account are tax-free. Generally, a qualified Roth distribution is a distribution that: 

(1)  is made five tax years or more following the date the first Roth contribution was made to the plan and 
(2)  is after attainment of age 59½, death, or disability. 

Consult your financial professional for more specific information.

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

The plan is intended to help you put aside money for your retirement. But Shelby County Schools has included a plan loan feature that enables you to access money from the plans.

  • The amount the plan can lend to you is limited to the lesser of one-half of your vested account balances or $50,000.

  • The minimum loan amount is $1,000.

  • All loans must generally be repaid within five years. A longer term of 15 years may be available if the loan is to be used to purchase your principal residence.

  • You can have only one loan 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 $30 per year maintenance fee are charged to your account.

Defaulted loan amounts (not repaid on time) will be taxed as ordinary income, and 403(b) defaulted loan amounts might be subject to a 10% federal tax penalty if you are under age 59½.

RO 2767020 (03/2023)