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Tax Sheltered Annuities

 CCPS offers 3 great ways to save for the future!

403(b) Savings Plan
Roth 403(b) Savings Plan
457(b) Deferred Compensation Plan
 
All of these plans provide an opportunity for employees to save money for retirement through payroll deductions.
 
The traditional 403(b) and 457(b) contributions are tax deferred (pre-tax) meaning the amount contributed is excluded from Federal and Maryland State income tax at the time of contribution. 
 
The Roth 403(b) is an after-tax retirement option. You pay taxes on the money you set aside now, but the growth and future withdrawals are tax free for qualified distributions.
 
 
Who is eligible to participate?
All CCPS employees, with the exception of CCPS student interns, are eligible to participate in both plans.
 
When can you enroll?
You are eligible to enroll immediately upon your date of hire.
 
How are contributions made?
Contributions are made via payroll deduction.  You determine the amount. You can increase, decrease, or discontinue your contribution amount at any time. 
 
What is the maximum amount that you can contribute?
The IRS limits the annual contributions you can make and the limits are adjusted each year. Below are the limits for 2012:
  • Elective Deferral Limit    $17,000
  • Age 50 Catch-up Limit   $  5,500   
  • Special 15 Years of Service Catch-Up  $ 3,000 maximum                                                                                                   
    (If both the age 50 catch-up and the special catch-up apply, the special catch-up applies first to its maximum extent, and then age 50 catch-up applies).
 
When can you withdraw funds from your TSA account?
You can withdraw money (after meeting all necessary criteria) from your pre-tax 403(b) or 457(b) account when any one of the following events occur:
- 403(b) only: Attainment of age 59½  
- Retirement
- Death
- Total and Permanent Disability
- Separation from employment
- 403(b) only: Financial hardship withdrawal
- 457(b) only: Unforeseeable emergency
 
For Roth 403(b) contributions, in order to receive a Qualified Distribution of earnings (no tax due) you must meet BOTH of these qualifying events:
- Your account must be open for 5 years.
- Separation from employment

Signing up is easy! Your first step is to meet with a representative of one of our 3 approved vendors. These representatives are happy to provide you their investment choices, help you decide which plan and which investments are right for you, and answer any other questions you have regarding the 3 plans. Once you’ve selected a vendor, your representative will work with you to complete the appropriate Salary Reduction Agreement (SRA), available in the "Forms" section of our website, authorizing payroll deductions to begin.

The CCPS Approved Vendors and the Representative's contact information can be found here: