403b/457b Comparison

  • 457b Info

     

    What is a 457(b) Tax Deferred Retirement Plan?

    A 457 Deferred Compensation Plan is a tax-deferred supplemental retirement Plan sponsored by your employer. The Plan is authorized by Internal Revenue Code (IRC) Section 457(b) and is governed by federal tax rules. Lewisville ISD determines the investment providers.   The Plan allows employees to voluntarily contribute a portion of their compensation on a tax-deferred basis to a retirement plan. The amount invested, plus earnings, is not taxable until withdrawn from the Plan.

     

    What is a 403(b) Tax Deferred Retirement Plan?

    A 403(b) is a retirement savings plan offered by public schools and other tax-exempt organizations that allows employees to make contributions on a pre-tax basis. The Plan is authorized by Internal Revenue Code (IRC) Section 403(b) and is governed by federal tax rules. Lewisville ISD determines the investment providers and employees must open an account with one of those providers to contribute. The Plan allows employees to voluntarily contribute a portion of their compensation on a tax-deferred basis to a retirement plan. The amount invested, plus earnings, is not taxable until withdrawn from the Plan.

     

     

    457(b)

    403(b)

    Third Party Administrator

    TCG Services (formerly JEM) – 800-943-9179

    TCG Services (formerly JEM) – 800-943-9179

    Investment Options

    Go to 457b Info  and click on the tab for 457(b). Click on "Resources" and then select the current "ESC Region 10 457(b) Quarterly Review"

    403(b) Texas Approved Vendor List

    How do I begin contributing to the plan

    Go to 457b Log-in and click on "New User".   Use lewis457 as the password to begin.   Follow the prompts to create your account. Call TCG Services if you need assistance.

    Open a 403(b) account with any of the approved companies (see above to find the list).   Once the account is open go to 403b Log-in and click on "New User".   Use lewis403 as the password to begin.   Follow the prompts to create your account. Call TCG Services if you need assistance.

    How often can I change my contribution amount?

    As often as you wish.  

    As often as you wish.  

    How do I check my account balance

    Go to 457b info and log into your account.  

    Contact the investment company you have your account with.

    When can I withdraw my money?

    When you reach age 70.5, or when you leave LISD (resignation or retirement).

    When you reach age 59.5, if you are disabled, when you leave LISD (resignation or retirement), or if you have a hardship (must qualify per IRS rules – see distribution form).

    How do I withdraw my money?

    Go to 457b Distribution Form and click on the 457(b) Tab.   Go to Forms and select the 457(b) Distribution Form.

    Go to 403b Distribution Form and click on the 403(b) Tab.   Go to Forms and select the 403(b) Distribution Form.

    Is there a penalty for early withdrawal?

    No

    Yes – 10% tax penalty

    Does Lewisville ISD match my contributions?

    No

    No

    What is the maximum amount I can contribute?

    See maximum at the IRS Website

    See maximum at the IRS Website

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