|
|
 |
| |
|
|
| | Roth 403(b)
Much like the Roth IRA, Roth 403(b) plan contributions are made on an after-tax basis, and allow for tax-free growth and tax-free withdrawals if the distributions are made after the age of 59 1/2 and the account has been open for at least five years.
You can choose to participate in a Roth 403(b) plan in addition to a traditional 403(b) Tax-Sheltered Account and/or a 457(b) Deferred Compensation Plan. You can contribute as little as $50 per month, up to a maximum of $16,500 in 2010 for Roth 403(b) and traditional 403(b) plans, plus an additional $16,500 for 457(b) plans, with a combined maximum annual contribution of $33,000. Under certain conditions the maximum may be even greater. | |
|
| |
Features
Employee-funded
Contributions are made on an after-tax basis
Earnings can be tax-free
Roth 403(b)Eligibility Requirements
Immediate eligibility for all full-time school district employees and part-time employees working at least 20 hours per week.
|  | | |
| |
Contribution Limits
2010 - 100% of includible compensation or $16,500, whichever is less.
15-Year Rule
If you have at least 15 years of service, then the limit on your elective deferrals, or contributions, to your 403b is increased by the lower of:
$3,000
$15,000 - reduced by the increases to the limit you were allowed in earlier years because of the 15-year rule.
$5,000 times the number of years of service you have with the organization minus the total elective deferrals made by your employer in earlier years.
If you happen to qualify for the 15-year rule, then your elective deferrals under this limit can be as high as $19,500 in 2009 and 2010 - and again, that number should move higher in 2011.
Catch-Up Contributions
Finally, if you reach the age of 50 or older by the end of any calendar year, you may be eligible to make additional catch-up contributions to your 403b account. You cannot make catch up contributions with after-tax contributions, and the maximum catch-up contribution you can make in 2009 is $5,500, or your includable compensation minus your other elective deferrals for the year. In 2010 limit is also remains the same at $5,500.
Distribution Events
5 years and attainment of age 59 1/2
Hardship, disability or death
Qualified Domestic Relations Order (QDRO)
Severance of employment with sponsoring employer
May allow loans
Distribution Requirements
Determined by plan | |
|
|
|
| | Securities offered through CUSO Financial Services, L.P., (CFS) are not NCUA/NCUSIF Insured, not Credit
Union Guaranteed and may lose value. KSFCU is in Partnership with CFS. Financial Advisors are employees of KSFCU and registered through CFS, (Member FINRA/
SIPC)
*For qualified tax advice see a Tax Professional. | |
|
|
|
|
|
|
|
|
