Supplemental 403(b) plan
Plan features
Welcome to your Supplemental 403(b) retirement plan. Click below to view the features and highlights of your employer’s retirement plans.
The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.
Take advantage today
You are immediately eligible to enroll and begin contributing.
Starting early has its advantages
Employee contributions
You may contribute as much as 100% of your annual includible compensation up to the maximum IRS contribution limit.
You may increase or decrease the amount you contribute to the plan as often as your employer allows.
Catch-up contributions
Your plan allows you to contribute additional contributions as follows:
Accessing your money
Distribution events
The following are distribution events for your 403(b) plan. A 10% federal early withdrawal tax penalty may apply for withdrawals prior to age 59½.
- Attaining age 59½
- Retirement or severance from employment*
- Your death or total disability
- Hardship withdrawals
In addition, the Internal Revenue Service (IRS) requires you to take Required Minimum Distribution (RMD) withdrawals from your retirement account(s) annually beginning the year you reach the RMD eligible age. RMD eligible age is:
- Age 73 if you were born January 1, 1951, or later (The RMD eligible age will increase to age 75 after December 31, 2032)
- Age 72 if you were born after June 30, 1949, and before January 1, 1951 (For individuals turning age 72 in 2023, no RMD payment is required in 2023)
- Age 70 ½ if you were born before July 1, 1949.
* Distributions where the employee retires or severs from employment at or after age 55 are not subject to the 10% federal early withdrawal tax penalty.
Important considerations before deciding to move funds either into or out of a Corebridge Retirement Services account
There are many things to consider. For starters, you will want to carefully review and compare your existing account and the new account, including: fees and charges; guarantees and benefits; and, any limitations under either of the accounts. Also, you will want to know whether a surrender of your current account could result in charges. Your financial professional can help you review these and other important considerations. Consult a tax professional before making a decision to move funds either into or out of a Corebridge account.
Loans
Tax-free loans make it possible for you to access your account without permanently reducing your account balance. Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal early withdrawal tax penalty if you are under 59½ years old.
A loan application fee of $75 per loan may apply (if permitted under state law).
An array of investment choices
Performance
You decide how to invest all contributions among the mutual funds and the Fixed-Interest Option* offered under the Voluntary 403(b) retirement plan for Boston Public Schools.
The wide array of investment options available in your 403(b) retirement plan will provide you with the flexibility you need to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.
* Policy Form series GFUA-315, a group fixed unallocated annuity issued by The Variable Annuity Life Insurance Company, Houston, Texas.
Remember, this plan represents a long-term investment. Investment values of the mutual funds you choose will fluctuate, and there is no assurance that the objective of any fund will be achieved. Mutual fund shares are redeemable at the then-current net asset value, which may be more or less than the original cost. Bear in mind that investing involves risk, including possible loss of principal.
RO2767020 (03/2023)