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403(b) plan

Plan details  

Welcome to your 403(b) retirement plan. Click below to view the features and highlights of your employer’s retirement plan.

Note: 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

Participation in the plan is open to all employees with the exception of leased employees. 

Upon enrollment, all eligible employees can contribute:

  1. on a pre-tax basis, thereby reducing your current taxable income,
  2. by making after-tax Roth contributions, allowing your money an opportunity to grow tax-free, or
  3. a combination of both. 

Starting early has its advantages

Employee contributions

Generally, you can contribute 100% of your annual includible compensation to the 403(b) program, up to the maximum IRS contribution limit. 

All eligible employees can contribute: 

  1. on a pre-tax basis, thereby reducing your current taxable income,
  2. by making after-tax Roth contributions, allowing your money an opportunity to grow tax-free, or
  3. a combination of both. 

2025 contribution limit

Your contribution limit for 2025 is $23,500.

Catch-up contributions

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

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.

Employer contributions

Minneapolis Public Schools matches a portion of the contributions to the 403(b) program for eligible employees. Refer to your collective bargaining agreement for details on the amount of employer match that you may be eligible for.

Stop/change contributions

Subject to your employer’s plan provisions, you can discontinue contributing to your plan at any time and resume contributions again later. You can also increase or decrease your contributions as often as your employer allows. 

Rollover/transfers

You can choose to transfer or roll over a retirement plan account from a prior employer to your current employer’s plan. However, before you make that decision, check to see if your other contract provides additional benefits or imposes surrender charges.

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.

Vesting

You are always 100% vested in all contributions to your account.

Accessing your money before retirement

Withdrawals

Your 403(b) program 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 can withdraw your account balance if you meet one of the following requirements:

  • Attainment of age 59½
  • Retirement or separation from service
  • Your death or total disability 
  • Certain financial hardship (elective deferrals only) 

The following are some events upon which you can take withdrawals without incurring a 10% federal tax penalty: 

  • Attainment of age 59½
  • Separation from service at or after age 55
  • Taking substantially equal payments after separation from service for a period of five years or attainment of age 59½, whichever is longer
  • Your death or total disability

Separation from service

If you separate from the service of your employer, your withdrawal options include:

  • Rolling your account over to another tax-qualified plan that accepts rollovers
  • Receiving systematic or partial withdrawals
  • Taking a lump-sum distribution

Income taxes will generally be payable on all amounts you withdraw from your plan. A 10% federal tax penalty could apply to withdrawals taken prior to age 59½. 

Consult your financial professional for more specific information concerning your situation.

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.

Loans

Loan provisions in your plan enable you to access your account,  subject to certain conditions and limitations. Remember that defaulted loan amounts will be taxed as ordinary income and may be subject to a 10% federal tax penalty if you are under age 59½.

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 Minneapolis Public School District 403(b) retirement plan. 

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.

Fixed-Interest Option transfer restrictions

Generally, participants may transfer assets from the Fixed-Interest Option into equity options at any time and, after 90 days, from equity options into another fixed-income option such as a money market fund, a stable value fund, or certain short-term bond funds if such “competing options” are allowed in the plan.  

RO 2767020 (3/2023)