403(b) plan

Take advantage today

All eligible employees can make pre-tax contributions to the plan immediately.

Information on 403(b) retirement plans
Roth 403(b) brochure
Additional Information on Roth 403(b)

Starting early has its advantages

Employee contributions

Generally, you may contribute as much as 100% of your annual includible compensation up to the contribution limit. You may increase or decrease the amount you contribute to the plan as often as your employer allows. 

Stop/change contributions

You may change your contribution amount or discontinue contributing to your plan at any time and resume contributing again later, subject to your employer’s plan provisions. In the meantime, your account will continue to grow on a tax-deferred basis. Please allow one month’s notice for processing.

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 before retirement

Withdrawals

Your plan was established to encourage long-term savings, so withdrawals prior to age 59½ might be subject to federal restrictions and a 10% federal tax penalty. 

Generally, depending on your employer’s plan provisions, you may withdraw your vested account balance if you meet one of the following requirements: 

• Attaining age 59½

• Retirement or separation from service

• Your death or total disability

• Hardship

The following are events upon which you may withdraw vested amounts without incurring a 10% federal tax penalty:

• Attaining age 59½

• Separation from service on or after age 55

• Your death or total disability

• Taking substantially equal payments after separation from service for a period of five years or attainment of age 59½, whichever is later.

Loans

The plan is intended to help you put aside money for your retirement.  However, the Idaho State Board of Education has included a plan feature that enables you to access money from your retirement plan.  

• 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.

• All loans must generally be repaid with five years.

• The minimum loan amount is $1,000.

• All loans must generally be repaid within five years.

• A $50.00 processing fee for all new loans and a $50.000 per year loan maintenance fee are charged to your account.

Unpaid loan amounts will be taxed as ordinary income and may incur a 10% federal tax penalty if you are under age 59½.

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