Tax-deferred Savings Plans when Leaving FCPS
More Information about Accessing Your 403(b), 457(b), or Hybrid 457 Account
Tax-Deferred Savings Plans: 403(b), 457(b), and Hybrid 457
When Contributions End
Contributions to the 403(b), 457(b), and Hybrid 457 plan end upon resignation or retirement.
If you are considering re-employment with FCPS, please be aware of the following potential impact on your tax-deferred savings plan:
- Temporary, hourly employees are eligible to contribute to the 403(b) plan through payroll deduction. However, this is not an option for the 457(b) plan.
- If you are retired and re-employ in a temporary hourly position, such as a substitute teacher, you may not be eligible to initiate a distribution, such as a rollover or cash withdrawal, from your FCPS 403(b) or 457(b) plan. Because you are an active employee, various tax laws prohibit distributions from these plans, except when certain criteria are met.
Accessing Your Funds
- Contact your 403(b) and/or 457(b) investment provider for distribution advice about your account. Here you can find contact information on the approved 403(b) and 457(b) vendors.
- If you are a 12-month employee and receive an annual leave payout, your tax-deferred contribution(s) will automatically be deducted from that payment unless you stop your contribution(s) prior to that payout. You should contact your 403(b) and/or the 457(b) investment provider for advice about your account.
- Federal tax law generally requires that plan participants receive an annual required minimum distribution (RMD) no later than April 1 of the year following the year you turn age 70½ or, in the year you retire from FCPS, whichever is later. Contact your investment provider(s) for further details.
TSA Consulting Group (TSACG) is the 403(b) third-party administrator for FCPS and serves as the clearinghouse for all 403(b) transactions. You will initiate all distribution transactions with TSACG. TSACG is responsible for evaluating and authorizing distribution and withdrawal transactions (to include cash withdrawals, rollovers, loans, and hardship withdrawals). You will initiate all distribution transactions through TSACG. You may request distributions by completing the necessary forms obtained from your investment provider, attaching them to a Transaction Routing Request form, and submitting all completed documents to TSACG for evaluation and authorization. The Transaction Routing Request form can be found on the TSACG website.
You should contact EMPOWER Retirement for distribution information at (877) 449-FCPS (3277) or on the EMPOWER website.
Hybrid 457 Distributions
ICMA-RC is the Hybrid 457 third-party administrator for VRS. To request a distribution, you must submit the appropriate distribution form to ICMA-RC by mail or by fax. The form can be found at www.varetire.org/hybrid under Forms. A separate form is required for distributions from both the Hybrid 457 Deferred Compensation Plan and the Hybrid 401(a) Cash Match Plan. For more information on requesting a distribution, contact ICMA-RC toll-free at 1-VRS-DC-Plan1 (1-877-327-5261, select Option 1) and ask to speak with an Investor Services Representative.