403(b)/457(b) TPA Services
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403(b) Plan Contribution Limits
Code Section 402(g) – Elective Deferrals
|Tax Year||Basic Salary Deferral Limit for all employees.||Annual limit if you qualify for the full amount of the Lifetime Catch-up (15 Years of Service). Total Lifetime Catch-up Max of $15,000||Annual limit if you qualify for the Age 50+ Catch-Up.||Maximum Annual contribution if you qualify for both the Age 50+ and Lifetime Catch-ups.|
Code Section 415(c) – The total of all contributions to a 403(b) account made on behalf of a participant cannot exceed 100% of compensation up to $53,000 in 2016 and $54,000 in 2017. This includes elective deferrals (pre-tax, Roth and after-tax), employer contributions (matches and non-electives) and forfeitures. Age 50 catch-up amounts are not counted against the limit.
457(b) Plan Contribution Limits
|Tax Year||Basic Total Contribution Limit
(Employee and Employer Contributions)
|Annual limit if you qualify for the Age 50+ Catch-Up|
A 403(b) plan is a tax deferred retirement savings plan similar to a private company 401(k) plan. 403(b) plans are available to governmental and public school employees. The 403(b) designation refers to the section in the Internal Revenue Code. Recent changes in the IRS regulations have required employers to provide compliance oversight and management of all of their employees’ 403(b) accounts effective January 1, 2009.
Benefits To The Employer
The Employer obtains the intangible benefits of providing a valuable tax-deferral program to employees.
Benefits To The Employee
Participating in your employer’s 403(b) plan allows you to save for retirement on a tax deferred basis. Contributions are voluntary and you choose the amount based on your retirement goals. Your contributions are deducted from your paycheck before taxes, thereby reducing your taxable income, which may reduce the federal and state income tax you pay each year. (These deductions are still subject to FICA (social security) tax.)
Your balance and earnings grow tax deferred until you take the money out at retirement. At that time, both your contributions and earnings are taxed as income. You are always 100% vested in your own contributions and earnings!
MidAmerica Administrative & Retirement Solutions serves as a 403(b) Plan’s Third Party Administrator providing plan oversight and administration. MidAmerica is available to all 403(b) Plan Participants for answering any questions regarding your 403(b) Plan. All plan related transactions (other than investment decisions) must be validated by MidAmerica. Plan related transactions include all distributions, hardships, loans and the processing of Salary Reduction Agreements for your contributions.
MidAmerica also provides a customized website for each District/Employer. The Spokeskids website further explains the changes and provides a retirement financial calculator so that you can determine how much you need to save to meet your retirement goals. Spokeskids also provides a list of investment providers approved by your Employer so that you can choose where to invest your retirement funds.