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403(b) Plan

Plan features

Welcome to your Commonwealth of Massachusetts 403(b) Elective Deferral Savings Plan. Click below to view the features and highlights of your employer’s retirement plan.

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.

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Who can participate?

Participation to the Plan is open to all eligible employees with the exception of students. 

All eligible employees can make pretax contributions to the Plan immediately.

An eligible employee includes an individual , whether appointed or elected, who is a common law employee of the Commonwealth of Massachusetts performing services as an employee of the employer.

Further, a person occupying an elective or appointive public office is not an employee performing services for the Commonwealth of Massachusetts unless such office is one to which an individual it elected or appointed only if the individual has received training, or is experienced, in the field of education. A public office includes any elective or appointive office of a State or local government. 

Starting early has its advantages

Employee contributions 

Through payroll deduction, your Plan allows you to make pre-tax contributions up to the maximum allowed by the Internal Revenue Code. An Internal Revenue Service (IRS) dollar limit also applies.

2025 contribution limit

Your contribution limit for 2025 is $23,500.

In order to participate in the Plan, you must make pre-tax contributions of at least $200 annually. 

Account consolidation, rollovers or transfers

If you have an existing qualified retirement plan (pre-tax), 403(b) tax deferred arrangement or deferred compensation plan account with a prior employer, you can transfer or roll over that account into the Plan on becoming a participant in the Plan.

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.

Catch-up contributions

You might be eligible to contribute additional catch-up contributions if you meet the following conditions:

2025 catch - up contributions

An additional $7,500 if you are age 50 or older.

See your Benefits Administrator or contact your financial professional for more details.

Stop/change contributions

You may stop your contributions anytime. Once you discontinue contributions, you may only start again as provided under the terms of the Plan. You can increase or decrease the amount of your contributions anytime.

Vesting

Vesting is a participant’s right of ownership to the money in his or her plan account. You are always 100% vested in employee contributions, and rollover contributions, plus any earnings they generate.

Accessing your money 

Withdrawals 

Money may be withdrawn from the Plan in these events:

  • Attainment of age 59½
  • Death
  • Disability
  • Severance from employment
  • Financial hardship (Hardship withdrawals may be made from salary reduction contributions only, not from earnings on those contributions.)
  • Taking the Required Minimum Distributions when required by law

Income taxes are payable upon withdrawal. Federal restrictions and a 10% federal early withdrawal penalty may appear if taken before age 59½. Be sure to talk with your tax advisor before withdrawing any money from your Plan account.

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.
Tax-free loans

The Plan is intended to help you put aside money for your retirement. However, your 403(b) Plan includes a feature that lets you borrow money from your account. All loans may be repaid over time.

  • The amount the Plan can loan to you is limited by rules under the tax law. All loans will be limited to the lesser of: one-half of your vested account balance or $50,000.
  • The minimum loan amount is $1000.
  • All loans must generally be repaid within five years. A longer term of 15 years may be available if the loan is to be used to purchase your principal residence.
  • You can have two loans outstanding at a time.
  • You pay interest back to your account. The interest rate on your loan will be the Prime Rate plus 1%.
  • A $50 processing fee for all new loans and a $50 per year loan maintenance fee are charged to your account.

Other requirements and limits must be met prior to borrowing money from your account. For additional information regarding loans, please see your financial professional. 

An array of investment choices

Available funds & performance

The following mutual funds and the Fixed-Interest Option* are available in your retirement plan. They provide you with the flexibility you need to help create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.

* Bear in mind that investing involves risk, including the possible loss of principal. Investment values 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 their original cost. Policy Form series GFUA- 315, a group fixed unallocated annuity issued by The Variable Annuity Life Insurance Company, Houston, Texas.

Fixed-Interest Option transfer or withdrawal restrictions

A 20% annual withdrawal is allowed from the Fixed-Interest Option with no withdrawal charge. There are no transfer or withdrawal restrictions if one of the following conditions are met:

  • Annuity payout option is selected
  • Your death
  • Total and permanent disability
  • Withdrawal taken as a hardship under the terms of the employer plan
  • Retirement or separation from service from the employer who sponsors your plan
  • Elect to transfer a portion of the account value to a companion account for a loan

This restriction includes money transferred to mutual funds or to another provider.

To view or print a prospectus, access “Prospectuses and Other Important Materials.” The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1.800.428.2542.

RO 2767020 (03/2023)