Tax Shelter Annuity Information403(b) - 403(b) Roth - 457
A tax shelter annuity program is a qualified tax-advantaged retirement vehicle offered by employers. 403(b) and 457s are specifically offered to employees of state/local government and public schools. This program is regulated by the IRS who determines the annual allowable maximum contribution and all other rules and regulations governing the program. The plan is open to all employees of District 622.
How does it work?
• Employees contribute pre-tax to a tax shelter annuity through the District payroll.
• Contributions may start, stop, or be increased or decreased anytime.
• Employee and employer contributions are not administered retroactively.
• Some employment contracts include a District Match to the employee contribution.
--Teachers, Principals, Non-Units: 3.6% District Match
--Local 70: 3.5% District Match
--Clerical, Education Assistants/LPNs, Nutrition Services, Paraeducators: No District Match
Employees must contribute the full match amount to receive the full District Match. For example, if an employee only contributes 3%, the District Match will be only 3%.
How do I start or change my current contributions?
• You must complete a Salary Reduction Agreement form. Return the completed form to the Benefits Office at the District Education Center or email it to firstname.lastname@example.org. Forms may also be faxed to Human Resources at 651-748-7448, sent interoffice mail or US mail to ISD 622, Attn: Benefits Office, 2520 E 12th Ave, North St Paul MN 55109.
• If you are starting a contribution or moving to a new company, you will also need to set up an account with the new company. During this process, you will determine your investment options and assign a beneficiary.
• Incomplete forms will be returned and not processed.
• Click here for a list of Tax Shelter Annuity Companies, contact information, and Group numbers.
The District's Third Party Administrator
A third party administrator (TPA) is an outside company hired by a school district to administer the 403(b) plan on behalf of the district. ISD 622 does not have the necessary staff currently employed who have either the time or expertise to manage the tax shelter annuity requirements. It was deemed more cost effective to hire an outside party to run the program rather than hiring a specialist to perform those duties in-house. In addition, the TPA will assure that all IRS rules are met and will ensure that the District is held harmless in the event of any errors. Almost all school districts in the metropolitan area have TPA’s to perform this function.
Questions about hardship transfers, loans, or rolling over a tax shelter annuity must be directed to: Educator Benefits Consultants, 763-689-0111, toll free 855-369-5518 or email@example.com
For all other questions, please contact the District Benefits Office at firstname.lastname@example.org or 651-748-7492.