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Participation in the plan is open to all employees.  
 

All eligible employees can make pretax deferrals to the plan immediately. Certain employers permit Roth after-tax deferrals as well as pretax deferrals.

Employee contributions

Through payroll deduction, your plan allows you to make combined deferrals up to the maximum allowed by the Internal Revenue Code. An Internal Revenue Service (IRS) dollar limit also applies.

In order to participate in the plan, you must make deferrals of at least $200. 

2025 contribution limit

Your contribution limit for 2025 is $23,500.

If you have an existing qualified retirement plan (pretax), qualified retirement plan (after-tax), 403(b) tax-deferred arrangement or nonprofit plan account with a prior employer or hold a traditional IRA account, 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 may be able to contribute:

2025 catch - up contributions

> An additional $3,000 if you have 15 more years of service and have undercontributed in prior years, and 

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

Stop or change contributions

You may stop your contributions quarterly. Once you discontinue contributions, you may only start again as provided under the terms of the plan.

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. Employer contributions to the plan, plus any earnings they generate, are fully and immediately vested as well.  

Withdrawals

Money can be withdrawn from the plan in these events:

  • Your retirement
  • Your reaching age 59½
  • Death
  • Disability
  • Total and permanent disability
  • Severance from employment
  • Purchase of Service Credits in PSRS/PEERS*
  • In-service withdrawal after reaching age 59½

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

* PSRS: Public School Retirement System of Missouri
   PEERS: Public School & Education Employee

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.

Hardship withdrawals

If you have an immediate financial need created by severe hardship and you lack other reasonably available resources to meet that need, you may be eligible to receive a hardship withdrawal from your voluntary contributions. If you feel you are facing a financial hardship, you should see your financial professional for more details.

Loans

The plan is intended to help you put aside money for your retirement. However, The CSD Retirement Trust has included a plan feature that enables you to access money from the plan tax free without permanently reducing 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 $1,000.
  • 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.
  • The loan can be prepaid in full without penalty at any time. The loan balance may be repaid in full at any time. Please contact the Client Care Center at 1.800.448.2542 to obtain a payoff quote which includes principal and interest due. If the loan is repaid in full before the end of the loan term, loan interest due shall be prorated.
  • You pay interest back to your account. The interest rate on your loan will be a fixed rate of 1% above the current prime interest rate as published from time to time in the Wall Street Journal.
  • 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. 

RO2767020(03/2023)