Supplemental Retirement Savings Plans

More Information about the 403(b), 457(b), and VRS Hybrid 457 Plans

Important Information for 403 and 457 Plan Participants:

The CARES Act recently passed by Congress relaxes hardship and loan distribution rules for the 403(b) and 457(b) plans when the employee (or spouse) has been diagnosed or quarantined due to COVID-19. To obtain more information about the Act, please visit the FCPS CARES Act website.
FCPS CARES Act website

Supplemental Retirement Savings Plans

A supplemental retirement savings plan (defined contribution plan) allows you to set aside pre-tax dollars through convenient payroll deductions to save for retirement. You choose a percentage of your salary to be invested in mutual funds or annuities available you select inside the retirement plan. The amount you have at retirement depends on how much you as the employee save in the plan, how long you keep those funds invested, and how well your investments perform inside the plan.

Supplemental Retirement Savings Plans Available

Visit each page listed below to see which plan may best meet your needs.

  • 403(b) for all FCPS employees. If you are eligible for the 457(b) program, you may participate in both plans.
  • 457(b) for full-time and part-time salaried employees of FCPS.

Click here to see a side-by-side comparison of the 403(b) and the 457 plans!

 

Watch your money grow!

The sooner you begin to save and invest, the sooner your money can start working for you! Contributing a small amount of your paycheck has the potential to make a big difference over time. The chart below illustrates different pay period contribution examples ($50, $100, $250, and $500 monthly contributions) and their estimated projected growth.

growth chart
This chart is for illustrative purposes only. This hypothetical example assumes 10 pay periods per year and an effective annual return of 6%, compounded monthly, with reinvestment of earnings and no withdrawls. This chart does not reflect any charges, expenses, or fees that may be associated with your Plan. The tax-deferred accumulations shown above would be reduced if these fees had been deducted. Rates of return may vary.

 

Annual Contribution Limits

The IRS limits the annual contributions you can make to a 403(b) and 457(b) plan, and the limits may be adjusted each year. You can contribute the lesser of 100% of your taxable income up to $19,500 for 2020, or $26,000 if you turn 50 in 2020 or have already turned 50. This is in addition to the maximum contribution allowed under each program. This maximum may increase each year according to the following current IRS schedule.

 

Under 50

50 or older

2020

$19,500

     $26,000

2019

$19,000

     $25,000

Your election will be a percent of your pay each pay period so as you receive annual salary increases your savings rate will also grow. You can change how much you contribute monthly. You can stop contributing and restart at a later date.

See IRS Publication 571  for more information.

VRS Hybrid Plan Members:

To contribute more to your Hybrid Retirement Plan and receive a partial matching contribution from FCPS, consider enrolling in the VRS Hybrid 457 component of your retirement plan. Learn more by visiting the VRS Hybrid 457 website.
VRS Hybrid 457 website

403(b) Plan

Learn more about the FCPS 403(b) plan.

457(b) Plan

Here you will find more details on the 457(b) plan, including eligibility and enrollment information.

VRS Hybrid 457 Plan

Here you will find more details on the VRS Hybrid 457 Plan, including eligibility and enrollment information.

HR Connection

Question for Human Resources? Submit it through the HR Connection portal or call 571-423-3000 or 1-800-831-4331.
HR Connection