WICOMICO COUNTY BOARD OF EDUCATION CONTRACTUAL EMPLOYEE’S GUIDE Tax-Sheltered Annuity Programs 403 (b) Plan A 403(b) Plan, also known as a tax-sheltered annuity (TSA) plan, is a retirement plan for employees of public schools. There are benefits to contributing to a 403(b) Plan. The first benefit is that you do not pay income tax on allowable contributions until you begin making withdrawals from the plan, usually after you retire. The second benefit is that earnings and gains on amounts in your 403(b) account are not taxed until you withdraw them. Once you enroll, contributions are made under a salary reduction agreement which allows your employer to withhold money from your paycheck to be contributed directly into a 403(b) account for your benefit. There are limits on the amount of contributions that can be made to your 403(b) account each year. You can enroll in the 403(b) plan and make changes at any time during the year. Employees who contribute to their 403(b) account will be eligible for an employer 401(a) match. Lincoln Financial Group is the sole provider for the WCPS 403(b) Plan. You have the option of choosing your investments from an array of mutual funds. In addition to the core mutual funds, participants will also have the option of investing in 15 LifeSpan allocation models. These time based asset allocation models provide participants with a pre-selected, diversified mix of the core mutual funds which are allocated to align with your target retirement or distribution date. They are automatically rebalanced each year and become more conservative as you approach your target retirement age. Wicomico County Public Schools 403(B) Plan Universal Availability Notice This notice is required to be provided annually to all employees and provides important information regarding the 403(b) plan in which you are eligible to participate (the “plan”). You may want to take this opportunity to either (1) begin making pre-tax and/or Roth 403(b) elective deferral contributions or (2) review your current elections and decide if you want to make changes. Before making any initial elections or changes, be sure to consult the written plan and any other materials provided to you that explain the terms of the plan. When can I enroll? You are eligible to enroll immediately upon your date of hire or any time thereafter. You may choose your initial elective deferral rate by visiting LincolnFinancial.com, meeting with a Lincoln Financial Retirement Consultant or speaking with a Lincoln Financial Customer Service Representative by phone at 1.800.234.3500. The Lincoln Financial Retirement Consultant for Wicomico County Public Schools is Vince Reagan, and he can be reached at 703.254.8715 or Vincent.Reagan@LFG.com. Schedule an appointment with Mr. Reagan by using the on online scheduler at https://lfg.com/wicomicoschedule and select from the available time slots. Appointments are held at Central Office, 2424 Northgate Drive, Suite 100, Salisbury, MD 21801. Can I change or stop my elective deferral contributions? You may change your elective deferral contributions daily during the plan year. You are permitted to revoke or cancel your election at any time during the plan year. When are my elective deferral contributions effective? After completing the enrollment requirements, your elective deferral contributions will begin on the next pay period or as soon as administratively possible. What is the maximum amount that I can contribute? The Internal Revenue Code limits the annual contributions you can make to a 403(b) plan and the limits are adjusted each year. The 2021 limits are as follows: • Elective deferral limit $19,500 • Age 50 catch-up $ 6,500 • 15 years of service catch-up $ 3,000*
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