403(b) TDA plan
An excellent way to save for retirement
Whether you are in the Ohio ARP or the state's defined benefit pension plans, you can set aside additional pretax dollars by contributing to the Ohio 403(b) Tax Deferred Annuity (TDA) or the Ohio 457(b) Deferred Compensation Plan (DCP). This is in addition to and above your employee contribution to the ARP or the defined benefit plans.
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
Your specific eligibility in the 403(b) Tax Deferred Annuity (TDA) is determined by your employer at date of your full-time employment. Some exceptions may apply. You should consult with your employer on specific eligibility requirements.
Please note that you should review your University's plan document in order to get the specific details of your plan or you may contact your financial professional.
Starting early has its advantages
Contributions
Through payroll deduction, you will be able to contribute a portion of your compensation into the plan up to the maximum IRS contribution limit. Your contributions will be deducted from your pay, automatically, and on a pretax basis.
Depending on your University's plan provisions, Roth 403(b) contributions may also be permitted.
Your employer may contribute a certain percentage of your total compensation to the plan as well. The actual percentage amount for the employer contribution is determined by your University's plan document.
Catch-up contributions
You may be eligible for catch-up contributions depending on your University's plan document. The catch-up contributions are as follows:
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, rollover contributions, plus any earnings they generate.
For employer contributions, vesting schedules may apply. See your University's plan document for more details.
Please note that you should review your University's plan document in order to get the specific details of your plan or you may contact your financial professional.
Accessing your money before retirement
Withdrawals
Your plan was established to encourage long-term savings. A 403(b) plan has less stringent withdrawal restrictions than a 457(b) plan while you are employed; however, a 10% federal early withdrawal penalty can apply to withdrawals prior to age 59½. The 10% federal tax penalty on early withdrawals may also apply to amounts rolled into the 457(b) plan from non-457(b) plans.
Depending on your University's plan provisions, a distribution may be made in these events:
- Severance from employment
- Retirement
- Disability
- Death
- In-service withdrawals
Income taxes are payable upon withdrawal. Federal restrictions and a 10% federal early withdrawal penalty may apply to withdrawals prior to age 59½ unless an exception applies. 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.
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.
Loans
The plan is intended to help you put aside money for your retirement. However, your plan has included a feature that enables you to access money without permanently reducing your account. See your University's plan document for more details.
Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal early withdrawal 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.
Please note that you should review your University's plan document in order to get the specific details of your plan or you may contact your financial professional.
RO 2767020 (03/2023)