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Financial Planning (403b & 457b)

403(b)

A 403(b) plan, also known as a tax-sheltered annuity, is a tax-advantaged retirement savings plan available for public education organizations. Contributions are made on pre-tax basis and investment earnings grow tax deferred until withdrawal, assumed to be retirement. Cedar Hill ISD has chosen to have their 403(b)-plan administered through National Benefits
Services (NBS) program.

403(b) Retirement Account Setup

A 403(b) plan allows you to contribute a portion of your compensation as a pre-tax or post-tax (Roth) contribution in order to save for retirement. Participation in the 403(b) plan is completely voluntary. If you are already contributing, at any time you can increase your contributions. For more information, visit 403(b) Retirement Account Setup

Roth 403(b)

Roth is being added as an option under the current 403(b) plans. The Roth 403(b) provides you with an option to make voluntary contributions on an after-tax basis. You get no current-year tax deduction for your Roth contributions. However, qualified distributions (funds in account for 5 years after first deferral and done after age 59 ½) will allow participants to withdraw their money tax-free. Employees can enroll for this option or stop contributions at any time. To get started, visit 403 (b) Salary Reduction Agreement and establish your account. Enrollment assistance is available by emailing 403bsupport@nbsbenefits.com or calling the NBS at 800-274-0503. For more information, visit CHISD Plan Highlights. 

457(b)

A 457(b) is an employer-sponsored, voluntary retirement plan that allows you to save money in a pre-tax account. Contributions to the plan are salary-deducted from your paycheck and automatically deposited into your 457(b) retirement savings account. Once separated from service, withdrawals from a 457(b) account are not subject to a 10% early withdrawal penalty. The 457(b) plan offers employees personalized guidance and flexible strategies to start the process of saving for retirement. TCG delivers investment advice and plan administration solutions that are transparent and cost-effective. The plan does not have any surrender charges or penalties upon distribution. To get started, visit 403 (b) Salary Reduction Agreement and establish your account. Enrollment assistance is available by emailing 403bsupport@nbsbenefits.com or calling the NBS at 800-274-0503. For more information, visit CHISD Plan Highlights.