Retirement Planning - 403(b) Plan
A 403(b) plan, also known as a Tax-Sheltered Annuity (TSA), is a tax-deferred retirement plan provided for employees of certain tax -exempt, governmental organizations or public education institutions.
LIFE SCHOOLS OF DALLAS 403(B) PLAN HIGHLIGHTS
Visit NBSbenefits.com/403b for additional information.You are eligible to participate in the 403(b) retirement plan provided by the Life Schools 403(b). Contributing to a 403(b) plan will give you peace of mind through financial security during your retirement. 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 to the 403(b) plan, now is a perfect time to increase your contributions.
WHAT ARE THE BENEFITS OF CONTRIBUTING TO A 403(B) PLAN?
LOWER TAXES
The 403(b) contributions you make can be on a pre -tax basis. This means that the money used to invest in the 403(b) plan is not taxed until the funds are withdrawn. For example, if your federal marginal income tax rate is 25%, and you contribute $100 a month to a 403(b) plan, you have reduced your federal income taxes by nearly $25. In effect, your $100 contribution costs you only $75. The tax savings grow with the size of your 403(b) contribution.
TAX-DEFERRED GROWTH
In your 403(b) plan, interest and earnings grow tax -deferred. This means that your interest will grow tax-free until the time of your withdrawal. The compounding interest on your 403(b) plan allows your account to grow more quickly than money saved in a taxable account where interest and earnings are taxed each year.
TAKING THE INITIATIVE
Contributing to a 403(b) retirement plan helps you take control of your future retirement needs. Other sources of retirement income, including state pension plans and Social Security, often do not adequately replace a person’s salary upon retirement. A 403(b) plan can be a great way to supplement your income at retirement.
HOW TO ENROLL IN THE PLAN
Life School has provided investment option(s) for you. A list of approved vendor(s) and the Salary Reduction Agreement (“SRA”) can be found by visiting the National Benefit Services website at http://www.nbsbenefits.com/non-erisa-403b-forms/or by contacting NBS (contact information below).Once you have chosen an approved vendor, please open a 403(b) account directly with them. To begin investing, send the completed SRA form to NBS who will work with your employer to begin contributions.
For more information, please contact:
NBS Retirement Service Center
8523 South Redwood Road West; Jordan, UT 84088
Phone: (800) 274-0503 ext. 2,5 Fax - (800) 597-8206
Contact NBS if you have questions about the retirement plan
Life Schools of Dallas Plan Contact Person:
Mayda Falcon, Benefit Specialist
132 East Ovilla Road, Suite A Red Oak, TX 75154
Phone: (469) 850-5433
