What is the difference between a 403(b) and 457(b) Plan?
Although they are both funded with pre-tax contributions, the plans differ in many ways:
403(b) plans are "Qualified Retirement Plans" under the Internal Revenue Code. Once a participant contributes money to a 403(b) plan, he/she can access the funds but may incur an earley distribution penalty unless they are at least 59½ or age 55 and separated from service.
457(b) plans are considered to be "Eligible Plans" which allow a participant access to their funds at any age upon separation of service without an early withdrawal penalty.
What is the Difference between 403(b) and 457(b) Plans?
457(b) vs. 403(b) Comparison
What is a 403(b) Plan?
A 403(b) Plan is a tax-deferred retirement savings permitted by Section 403(b) of the Internal Revenue Code. This Code Section allows those employed by certain employers to participate in a tax-deferred retirement savings plan. The IRS defines 403(b) qualified employers to include public school systems.
Eligibility
- Active Visalia Unified School District employees are eligible to make voluntary retirement contributions to the 403(b) Plan (sometimes referred to as a tax-sheltered annuity) through payroll deductions.
- The maximum contribution is set by the IRS and is usually adjusted annually.
- All Visalia Unified employees, whether full-time, part-time, or substitutes are eligible to participate in the 403(b) Plan.
Sometimes employees have questions about which retirement savings plan will be best for them, or what investment fund vendor they should select. However, these are not areas that Visalia Unified can provide advice on. Questions of this nature need to be researched by the employee or work with an independent financial advisor to address those questions.
Plan Administration
A third-party administrator, TCG Administrators (TCG), manages the 403(b) Plan for Visalia Unified School District. The Visalia Unified School District plan includes different investment fund vendors for employees to select from; several include investment fund vendors that offer the Roth 403(b) option.
Visalia USD 403(b) Summary Plan
Enrollment and Payroll Contributions
Have questions about the 403(b) Plan? Find frequently asked questions about enrollment, investment fund vendors, and payroll contributions.
2023 Maximum Annual Contributions
| 403(b) | 457(b) | |
|---|---|---|
| Under Age 50 | $22,500 | $22,500 |
| Over Age 50 | $30,000 | $30,000 |
To enroll in the 403(b) Plan
If you elect to enroll in the 403(b) Plan, you will first need to select an investment fund vendor and complete any necessary paperwork with that vendor.
To locate the list of investment fund providers for Visalia Unified School District 403(b) Plan
The complete list of 403(b) Plan investment fund vendor is available on the CalSTRS403bcomply website. You can the locate the list by:
- Go to CalSTRS403bComply.com
- Click Plan Information, enter Visalia USD in the search box and then click "Search"
- Select the 403(b) Admin tab
- Under Plan Description, select 403(b) Admin Approved Vendor List to review the list of 403(b) Plan investment fund providers.
Complete any necessary research to determine the investment fund vendor you would like to use for your 403(b) Plan. You must contact that vendor and open a 403(b) account with them. Please note: some vendors offer online enrollment, others offer phone enrollment, and some you will need to meet with one of their representatives; either virtually or in person to open an account.
To set up payroll contributions to your 403(b)
Do not take this step until you have an account open with your selected investment fund vendor. If you set up contributions before your account is open, your 403(b) contributions will be returned to Visalia Unified School District to be refunded to you.
Instructions to get started can be found here or you can visit TCG Services
For enrollment help, you can contact TCG Administrators at (800) 943-9179 or visit this link for enrollment help.
Enrollment Periods
You can enroll in the 403(b) Plan at any time during the year. Changes are needed by the 9th of every month to be effective for the next payroll date.
Change an Existing Plan
If you are changing your elections for the first time, you will need to enroll by choosing "Enroll" on the menu and searching for your Employer. You will need your Social Security Number to create your account. The elections you make during the enrollment process will take the place of your current elections.
If you have already enrolled on our system, you can make future changes online by clicking the "Login" button on the menu and accessing your account. The following transactions can be made online: Contribution Amount and Investment Allocation Percentages.
Request a distribution, loan, or rollover
To request a distribution, loan or roll-over from your 403(b) Plan please contact your current investment fund vendor to determine what paperwork they need you to complete and then complete that paperwork.
In addition to completing the paperwork from your investment fund vendor, the TCG Administrators 403(b) Distribution Form is also required to request a distribution or roll-over from your 403(b) Plan.
To Complete the 403(b) Distribution Form:
- Go to CalSTRS403bComply.com
- Click Plan Information, enter Visalia USD in the search box and then click "Search"
- Select the 403(b) Admin tab
- Under Forms, select 403(b) Distribution Form
For questions or more information, please contact TCG Administrators at (800) 943-9179 or visit the FAQ's page
- Go to CalSTRS403bComply.com
- Click Plan Information, enter Visalia USD in the search box and then click "Search"
- Select the 403(b) Admin tab
- Locate FAQ's
What is a 457(b) Plan?
A 457(b) Plan is a special type of employer-sponsored retirement plan that certain governmental employers, and other tax-exempt organizations can establish for their employees.
Eligibility
- Active Visalia Unified School District employees are eligible to make voluntary retirement contributions to the 457(b) Plan (sometimes referred to as a tax-sheltered annuity) through payroll deductions.
- The maximum contribution is set by the IRS and is usually adjusted annually.
- All Visalia Unified employees, whether full-time, part-time, or substitutes are eligible to participate in the 457(b) Plan.
Sometimes employees have questions about which retirement savings plan will be best for them, or what investment fund vendor they should select. However, these are not areas that Visalia Unified can provide advice on. Questions of this nature need to be researched by the employee or work with an independent financial advisor to address those questions.
Plan Administration
A third-party administrator, TCG Administrators (TCG), manages the 457(b) Plan for Visalia Unified School District. The Visalia Unified School District plan includes different investment fund vendors for employees to select from; several include investment fund vendors that offer the Roth 457(b) option.
Visalia USD 457(b) Summary Plan
Enrollment and Payroll Contributions
Have questions about the 457(b) Plan? Find frequently asked questions about enrollment, investment fund vendors, and payroll contributions.
To enroll in the 457(b) Plan
If you elect to enroll in the 457(b) Plan, you will first need to select an investment fund vendor and complete any necessary paperwork with that vendor.
To locate the list of investment fund providers for Visalia Unified School District 457(b) Plan
The complete list of 457(b) Plan investment fund vendor is available on the CalSTRS403bcomply website. You can also find the locate the list by:
- Go to CalSTRS403bComply.com
- Click Plan Information, enter Visalia USD in the search box and then click "Search"
- Select the 457(b) Admin tab
- Under Plan Description, select 457(b) Summary Plan Description
The current approved 457(b) Plan vendors are:
- Plan Member
- Voya
- TDS
- Valic
Complete any necessary research to determine the investment fund vendor you would like to use for your 457(b) Plan. You must contact that vendor and open a 457(b) account with them. Please note: some vendors offer online enrollment, others offer phone enrollment, and some you will need to meet with one of their representatives; either virtually or in person to open an account.
To set up payroll contributions to your 457(b)
Do not take this step until you have an account open with your selected investment fund vendor. If you set up contributions before your account is open, your 457(b) contributions will be returned to Visalia Unified School District to be refunded to you.
Instructions to get started can be found here or you can visit TCG Services
For enrollment help, you can contact TCG Administrators at (800) 943-9179 or visit this link for enrollment help.
Enrollment Periods
You can enroll in the 457(b) Plan at any time during the year. Changes are needed by the 9th of every month to be effective for the next payroll date.
Change an Existing Plan
If you are changing your elections for the first time, you will need to enroll by choosing "Enroll" on the menu and searching for your Employer. You will need your Social Security Number to create your account. The elections you make during the enrollment process will take the place of your current elections.
If you have already enrolled on our system, you can make future changes online by clicking the "Login" button on the menu and accessing your account. The following transactions can be made online: Contribution Amount and Investment Allocation Percentages.
Request a distribution, loan, or rollover
To request a distribution, loan or roll-over from your 457(b) Plan please contact your current investment fund vendor to determine what paperwork they need you to complete and then complete that paperwork.
In addition to completing the paperwork from your investment fund vendor, the TCG Administrators 457(b) Distribution or Loan Form is also required to request a distribution, loan, or roll-over from your 457(b) Plan.
To Complete the 457(b) Distribution or Loan Form:
- Go to CalSTRS403bComply.com
- Click Plan Information, enter Visalia USD in the search box and then click "Search"
- Select the 403(b) Admin tab
- Under Forms, select TCG 457(b) Plan Distribution Form or 457(b) Loan Request
For questions or more information, please contact TCG Administrators at (800) 943-9179 or visit the FAQ's page
- Go to CalSTRS403bComply.com
- Click Plan Information, enter Visalia USD in the search box and then click "Search"
- Select the 403(b) Admin tab
- Locate FAQ's
