Supplemental Retirement Savings Plans: 403(b) & 457(b)

Howard County Public School System offers you two different methods to save additional funds for retirement by contributing to a supplemental retirement plan. One is through a 403(b) plan, also known as a Tax Sheltered Annuity (TSA). The other is through a 457(b) plan, also known as a Deferred Compensation Plan. Both plans permit employees to supplement their retirement benefits by purchasing tax-sheltered annuities or tax-sheltered mutual funds through payroll deductions.

Both plans are designed to:

• Help you save for retirement regularly on a tax-deferred basis
• Reduce your current taxable income
• Provide you with a choice of investment options
• Provide for your beneficiary

Please note:

• There is no open enrollment period for participating in these plans. Enrolling in one or both plans can be done at any time throughout the year, once the account has been opened with the vendor.
• There is no waiting period beyond what is required to process the paperwork to set up your account and begin payroll deductions.
• Employees have the option of contributing to both plans to maximize the amount of money that they are saving for retirement.
• The minimum contribution per pay period is $5.