403(b) and 457(b) Deferred Compensation Plans

 

403(b) and 457(b) are voluntary programs that are available to help you invest pre-tax dollars to save for your retirement through automatic payroll deductions.  Contributing to either or both plans may lower your current income taxes.  Your contributions will be invested by a financial institute and any investment gains and losses will be tax-deferred until withdrawn.  These are voluntary programs; therefore it is your responsibility to monitor your account. 

1. What are the differences between the plans?
457(b) Plans 403(b) Plans
• No 10% early withdrawal federal tax penalty after separation from service. • 10% early federal tax penalty might apply if you have not reached age 59.5.
• Generally, withdrawals made prior to separation from service or prior to age 70.5 can only be made in an unforeseeable emergency. • Generally, withdrawals made prior to separation from service or prior to age 59.5 can only be made due to financial hardship.

• Examples of unforeseeable emergency include:

     - a sudden and unexpected illness or accident for you or a dependent

     - loss of your property due to casualty

     - other similar extraordinary circumstances arising as a result of events
       beyond your control

 

 • A financial hardship withdrawal is considered less restrictive while you are employed - than a 457(b) unforeseeable emergency.  Examples of financial hardship include:

     - unreimbursed medical expenses

     - payments to purchase a principal residence

     - higher education expenses

     - payments to prevent eviction or foreclosure of a mortgage
• No 10% penalty for distribution prior to age 59.5 if you are separated from service. • Withdrawals can be subject to a 10% federal tax penalty prior to age 59.5.

 

 

2. Who is eligible to participate?

All active employees are eligible to participate in one or both plans.

3. How do I enroll?

For a 457(b) account:

Before you enroll, make sure to have the following information available:

  • Your investment allocation amounts/percentages for your investment choices. Go to http://457b.lausd.net to review your options.
  • Your Social Security number.
  • Your beneficiary’s Social Security number (if available), birth date and address.

Go to http://457b.lausd.net and click “ENROLL NOW.” Next, click on "457(B) DEFERRED COMPENSATION PLAN." Once on this page:

  • Enter your User ID and click “Log In” if you have established a TIAA-CREF User ID and Password. Click “Register with TIAA-CREF” if you are a first-time user and need to create your User ID and Password.
  • Follow the on-screen directions to complete your online salary deferral agreement and your enrollment application. Note: At the allocation screen, click on any investment choice to view its fact sheet.
  • Next, print a confirmation page from the “Thank You” screen.

 

For a 403(b) account:

  • Set up your initial account by selecting a vendor from the list of approved 403(b) vendors.
  • Complete the selected vendor’s application form. The application form is only available from the vendor you choose.
  • After you have completed your application with your vendor and established an account, please log on to http://403b.lausd.net to start your contribution.
  • please continue to question # “4. How do I log in?” to set up your access before proceeding.
  • Please call TSA Consulting Group at (888) 796 – 3786 if further assistance is needed.
4. How do I log in?

For a 457(b) account:

  • Log on to http://457b.lausd.net.
  • Under "Take Charge,” click on "MANAGE MY CONTRIBUTIONS," if you already have a user ID and password.
  • If you do not have a user ID and password, please refer to question # "3. How do I enroll?" to set up access before proceeding.
  • Click on "457(B) DEFERRED COMPENSATION PLAN."
  • Enter your user identification in the “USER ID” box. Click on “NEXT.”
  • Enter your password in the “Password” box. Enter your security answer in the “Answer to Security Question” box. Click on “Log In.”
  • Congratulations! You are logged in.
  • Please call TIAA-CREF at (888) 200 – 4073 if further assistance is needed.

 

For a 403(b) account:

  • Log on to http://403b.lausd.net.
  • Click on “Online Transaction Processing and Salary Reduction Agreement Processing.”
  • Choose either “I have contributed to a 403(b) account at LAUSD during the past 5 years” or “I have NOT contributed to a 403(b) account at LAUSD during the past 5 years,” which ever one is appropriate and follow the instructions to set up your “User ID” and “Password.”
  • You may now enter your “User ID” and “Password” in the appropriate login boxes.
  • Please call TSA Consulting Group at (888) 796 – 3786 if further assistance is needed.
5. How do I start, stop, or change my contributions?

For a 457(b) account:

  • Log on to http://457b.lausd.net.
  • Click on "MANAGE MY CONTRIBUTIONS."
  • Click on "457(B) DEFERRED COMPENSATION PLAN.
  • Enter your user identification, password, and security question in the appropriate boxes and click on "Log In."
  • Click on "Schedule a Change."
  • Enter your desired amount and effective date in the appropriate boxes.
  • Review your settings and follow the steps to complete the changes.
  • Congratulations! You have just completed this process.
  • Please call TIAA-CREF at (888) 200 – 4073 if further assistance is needed.

 

For a 403(b) account:

  • Please make sure you have an account established with your vendor company prior to making any transactions.
  • Log on to the website http://403b.lausd.net.
  • Click on “Online Transaction Processing and Salary Reduction Agreement Processing.”
  • Click on “Participant.” Enter your user identification and password. Click on “Login,” then answer your security question.
  • If you do not have a user identification or password, please refer to question # “4. How do I log in?” to set up your access before proceeding.
  • Once you are logged in, click on the “Salary Reduction Agreement.” You will now see “Salary Reduction Agreement Source Selection.” Click on “403(b) Deferral.”
  • You will now see the names of “Investment Providers” you may choose from, as well as the corresponding “New Election” boxes.
  • Choose your investment provider, enter a dollar amount in the corresponding “New Election” box to start or change your contribution. You may also enter “$0” in the appropriate box to stop your contribution.
  • Scroll down to the bottom of the web page. Read the confirmation statement “I confirm I have an established account(s) with the selected Investment Provider(s) listed above.”
  • Select the “check box.”
  • The “Submit” button will appear.
  • Click on “Submit.”
  • A pop-up message, “Please ensure you have established an account with an approved Investment Provider before starting a NEW Salary Reduction Agreement.  If no established accounts exist, please CANCEL the current request.” will appear. Click on the “OK” button.
  • If your account has been established, click on “Continue.”
  • Congratulations! You have just completed this process.
  • Please call TSA Consulting Group at (888) 796 – 3786 if assistance is needed.
6. How do I request a transfer/ rollover/ withdrawal/ surrender?

For 457(b) account:
• Log on to http://457b.lausd.net.
• Click on “Account Actions.”
• The forms are available at the bottom section of the web page.
• You may now select the appropriate transaction below.

 

For Transfer/ Rolling In:
• Under “Rollovers and Transfers” click on the link “you can complete this form.”
• The link is also available here: http://www.tiaa-cref.org/ucm/groups/content/@ap_ucm_p_tcp_docs/documents/document/tiaa04028336.pdf
• Follow the instructions and complete the form.
• Review the checklist on “STEP NINE” of the form to make sure you have completed all the requirements.
• Mail the completed document to:
TIAA-CREF
ATTN: Transfer/ Rollover Department
P.O. Box 1260
Charlotte, NC 28201-1260

 

For Transfer/ Rolling Out:
You may only transfer / rollover to a new vendor company after you have separated from service with LAUSD or if you have reached the age of 70.5. Please contact your new vendor to receive transferring/ roll over instructions.

 

Unforeseeable Emergency Withdrawal:
• Under “Questions?” click on the link “you can learn more here.”
• The link is also available here: http://www.tiaa-cref.org/ucm/groups/content/@ap_ucm_p_tcp_docs/documents/document/tiaa04026524.pdf
• Follow the instructions and complete the form.
• Mail the completed form and all supporting documents to:
TIAA-CREF
P.O. Box 1259
Charlotte, NC 28201-1259

 

Regular Withdrawal:
• Please call (888) 200-4073 for this request.

 

 

For 403(b) account:
• Log on to the website http://403b.lausd.net.
• Click on “Online Transaction Processing and Salary Reduction Agreement Processing.”
• Click on “Participant.” Enter your user identification in the “User ID” box and your password in the “Password” box. Click on “Login.”
• Once you are logged in, click on the “Loans & Distributions” tab. You will now see “Online Transactions.”
• Under “Online Transactions,” you may select “Exchanges & Rollovers,” “New Loan,” or Distributions.”
• You may now select the appropriate transaction below.

 

For Transfer/ Rollover:
• Select “Exchanges & Rollovers” and select “Transaction type.”
• “Transaction type” has a drop down menu for “Exchange,” “Rollover Into Plan,” and “Rollover Out of Plan.”
• Select the appropriate transaction and follow the written instructions.
• Click on “Submit.”
• Click on “Continue.”
• Congratulations! You have just completed this process.

 

For Withdrawal/ Surrender:
• Select “Distributions” and select “Select withdrawal type.”
• “Select withdrawal type” has a drop down menu for “Hardship Distribution,” “Unrelated Rollover,” “Purchase of Service Credit,” “Age 59 ½ Distribution,” and “Employment Termination.”
• Select the appropriate transaction and follow the written instructions.
• Click on “Submit.”
• You will see a message above the “Continue” button, depending on your selected transaction. Please read the message and follow the instruction before continuing.
• Click on “Continue.”
• Congratulations! You have just completed this process.

 

2) You may fax your completed vendor’s transaction paperwork, along with a completed TSA Transaction Routing Request cover sheet. The cover sheet is available on the website http://403b.lausd.net.
• Click on “Retiree Transaction Information.”
• Under “Fax and Mail Submission Information for Transactions (loans, hardships, distributions, etc.),” There is a “Click here” button.
• Click on “Click here.”
• Complete the information on the form, print it, and fax it as a cover sheet along with your supporting documents.

7. How do I apply for a loan?

Only active employees, regardless of age, may apply for a loan if qualified. Loans are available through approved vendors only.

 

For 457(b) account:
• Log on to the http://457b.lausd.net.
• Under “ALREADY ENROLLED?” click on “LOG IN.”
• Enter your user identification, password, and security question in the appropriate boxes and click on "Log In."
     o If you do not have a user ID and password, please refer to question # "3. How do I enroll?" to set up access before proceeding.
• Click on “Manage My Portfolio.”
• Under “Manage Loans,” click on “Apply for a new loan.”
• You may also click on “View demo” to watch a demonstration video on loan requests.
• Follow the on-screen requirements to complete your loan request.
• After completing the necessary steps, you may finalize your request by clicking on “I Agree” or “I Disagree.”
• Congratulations! You have completed your loan request.
• Please call TIAA-CREF at (888) 200 – 4073 if further assistance is needed.

 

For 403(b) account:
• Log on to the http://403b.lausd.net.
• Click on “Online Transaction Processing and Salary Reduction Agreement Processing.”
• Click on “Participant.” Enter your user identification in the “User ID” box and your password in the “Password” box. Click on “Login.”
     o If you do not have a user identification or password, please refer to question # “4. How do I log in?” to set up your access before proceeding.
• Once you are logged in, click on the “Loans & Distributions” tab. You will now see “Online Transactions.”
• Under “New Loan,” you may select “Personal Loan” or “Residential Loan” in the drop down menu.
• Select the appropriate transaction.
• Enter your amount under “Amount Requested.”
• Click on “Submit.”
• Verify your information and click on “Continue.”
• If approved, you may print out your certificate.
• Submit the certificate to your vendor company along with all necessary documents.
• Please call TSA Consulting Group at (888) 796 – 3786 if further assistance is needed.
 

8. How do I apply for an Unforeseeable Emergency Withdrawal or Hardship Withdrawal?

For 457(b) Unforeseeable Emergency Withdrawal:
• Log on to http://457b.lausd.net.
• Click on “Account Actions.”
• The forms are available at the bottom section of the web page.
• Under “Questions?” click on the link “you can learn more here.”
• The link is also available here: http://www.tiaa-cref.org/ucm/groups/content/@ap_ucm_p_tcp_docs/documents/document/tiaa04026524.pdf
• Follow the instructions and complete the form.
• Mail the completed form and all supporting documents to:
TIAA-CREF
P.O. Box 1259
Charlotte, NC 28201-1259
• Please call TIAA-CREF at (888) 200 – 4073 if further assistance is needed.

 

For 403(b) Hardship Withdrawal:
• Log on to the website http://403b.lausd.net.
• Click on “Online Transaction Processing and Salary Reduction Agreement Processing.”
• Click on “Participant.” Enter your user identification in the “User ID” box and your password in the “Password” box. Click on “Login.”
• Once you are logged in, click on the “Loans & Distributions” tab. You will now see “Online Transactions.”
• Under “Distributions,” there is a drop-down menu.
• Select “Hardship Distribution.”
• Select the appropriate “withdrawal type” and “hardship reason.”
• Enter your amount under “Amount Requested.”
• Click on “Submit.”
• Verify your information and click on “Continue.”
• If approved, you may print out your certificate.
• Submit the certificate to your vendor company along with all necessary documents.
• Please call TSA Consulting Group at (888) 796 – 3786 if further assistance is needed.
 

9. Where do I submit requests/ forms for approval?

For 457(b) account:
These are usually the only situations that require an approval for a 457(b) account. However you may call (888) 200-4073 if you believe you have a different document that needs to be approved.

 

For Transfer/ Rolling In:

• Log on to http://457b.lausd.net. (cut-off date is the 9th of each month)

• Click on “Account Actions.”

• The forms are available at the bottom section of the web page.

• Under “Rollovers and Transfers” click on the link “you can complete this form.”

• The link is also available here: http://www.tiaa-cref.org/ucm/groups/content/@ap_ucm_p_tcp_docs/documents/document/tiaa04028336.pdf

• Follow the instructions and complete the form.

• Review the checklist on “STEP NINE” of the form to make sure you have completed all the requirements.

• Mail the completed document to:
TIAA-CREF
ATTN: Transfer/ Rollover Department
P.O. Box 1260
Charlotte, NC 28201-1260

 

For Unforeseeable Emergency Withdrawal:

• Log on to http://457b.lausd.net.

• Click on “Account Actions.”
• The forms are available at the bottom section of the web page.
• Under “Questions?” click on the link “you can learn more here.”
• The link is also available here: http://www.tiaa-cref.org/ucm/groups/content/@ap_ucm_p_tcp_docs/documents/document/tiaa04026524.pdf
• Follow the instructions and complete the form.
• Mail the completed form and all supporting documents to:
TIAA-CREF
P.O. Box 1259
Charlotte, NC 28201-1259

 

For 403(b) account:

Fax Instruction:
• Log on to http://403b.lausd.net. (Cut-off date is the 5th of each month)

• Click on “Retiree Transaction Information”

• Click on “Click here” to download the Transaction cover sheet.

• Complete the information required on the cover sheet.

• Fax the cover sheet along with all the completed pages of your application to:
(866) 741- 0645 or (866) 814 – 0622

 

Mail Instruction:

• Log on to http://403b.lausd.net.

• Click on “Retiree Transaction Information”

• Click on “Click here” to download the Transaction cover sheet.

• Complete the information required on the cover sheet.

• Mail the cover sheet along with all the completed pages of your application to:
TSA Consulting Group, Inc.
28 Ferry Rd.
SE Fort Walton Beach, FL 32548
 

10. Where can I get more information?

 

For 457(b):

Log on to http://457b.lausd.net or call TIAA-CREF at (888) 200 - 4073.

 

For 403(b):

Log on to http://403b.lausd.net or call TSA Consulting Group at (888) 796 - 3786.

 

 

11. Meeting Minutes

 

12. What is the maximum contribution?

What is the maximum contribution?

If you are under age 50, you can contribute up to $17,500 per plan per year.  If you are age 50 or older, you may contribute a total of $23,000 per plan per year.  Limits may change yearly based on IRS regulations.

 

When can I take advantage of this benefit?

You can start contributing anytime.

13. Related publications and forms

 

Publications:

 

Useful websites:

14. For employees holding a 457(b) Schwab Brokerage Account

 

If you are an employee holding a 457(b) Schwab Brokerage Account, immediate action is required. Click here