403(b) plan
Welcome to your Miami-Dade County Public Schools 403(b) 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?
You are immediately eligible to participate in the plan and may begin contributing to the plan upon enrollment. Certain classes of employees are not eligible to participate in this plan:
- Employees who are students performing services described in section 3121(b)(10) of the Code.
Starting early has its advantages
Employee contributions (subject to plan terms)
Generally, you may contribute as much as 100% of your annual includible compensation up to the annual IRS maximum contribution limit. You may increase or decrease your contributions as often as your employer allows.
Account consolidation, rollovers or transfers
You might be able to transfer your vested retirement account balance from a prior employer’s plan to your Miami-Dade County Public Schools with Corebridge Retirement Services. This may be a way to simplify your financial profile and to ensure your overall investments are suitably diversified and consistent with your investment preferences.
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:
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.
Employer contributions
Employer contributions shall be made in accordance with any applicable collective bargaining agreements or employment contracts as shall be determined from time to time by Miami-Dade County Public Schools. Post-employment contributions shall be made.
Vesting
Vesting is a participant’s right of ownership to the money in his or her plan account. You are always 100% vested in your own as well as employer contributions.
Accessing your money before retirement
Withdrawal restrictions
Your plan was established to encourage long-term savings, so withdrawals prior to age 59½ may be subject to federal restrictions and a 10% federal early withdrawal tax penalty.
Generally, depending on plan provisions, you may withdraw your vested account balance if you meet one of the following requirements:
- Reaching age 59½
- Retirement or severance from employment
- Your death or total disability
- Hardship
The following are events upon which you may withdraw vested amounts without incurring a 10% federal early withdrawal tax penalty:
- Reaching age 59½
- Severance from employment on or after age 55
- Your death or total disability
- Taking substantially equal payments for a period of five years or upon reaching age 59½, whichever is later
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.
Distribution options
Your plan offers many distribution options, allowing you to tailor your benefits to meet your individual needs. Depending on plan provisions, your withdrawal options may include:
- Transferring or rolling over your vested account balance to another tax-advantaged plan that accepts transfers of rollovers
- Electing systematic or partial withdrawals
- Taking a lump-sum distribution
- Choosing one of the many annuity options available
- Required Minimum Distribution (RMD) withdrawals as required by law
Generally, income taxes must be paid on all amounts you withdraw from your plan. A 10% federal early withdrawal tax penalty may apply to distributions taken prior to reaching age 59½.
Qualified distributions from a Roth account are tax-free. Generally, a qualified Roth distribution is a distribution that is withdrawn (1) after the end of the five-year period beginning with the first year in which a Roth contribution was made to the plan, and (2) after reaching age 59½, death or disability.
Consult your financial professional for more specific information.
Tax-free loans
Tax-free loans make it possible for you to access your account, subject to certain limitations, 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 age 59½.
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.
RO 2767020 (3/2023)