Tax Shelter Annuities

  • ALL EMPLOYEES ARE ELIGIBLE, AT ANY TIME, to save for retirement by contributing to a 403(b) Plan and/or an NYS Deferred Compensation 457(b) Plan, through payroll deductions.  There are two major benefits to participating in these tax shelter plans.

    1. You do not pay income tax on contributions until you begin making withdrawals from the plan, usually after you retire.
    2. Earnings and gains are not taxed until you make withdrawals.

     

    403(b) Plan

    This is an employer-sponsored retirement plan offered to tax-exempt and municipal employees.  It is very similar to a 401(k), with the main difference being the 401(k) is for private-sector employees.  A 403(b) offers you the opportunity to save money from your paycheck pre-tax, so you will defer paying federal and state income taxes on your retirement account savings and your investment earnings until you withdraw the money at retirement. 

    To establish a 403(b) account, the employee contacts an advisor from one of the vendors that the district does business with and he/she will help you put together a portfolio (see list below under Related Files).  The advisor will take into consideration many factors that include, but are not limited to:

    • What is your and/or your spouse’s age?
    • How many years will you continue to work before retiring?
    • What type of lifestyle do you want to live in retirement? Do you want to work part-time or not at all, travel, or stay local?
    • How much risk are you willing to take?  You can invest conservatively with little to no risk, moderately invest by taking some risk or invest aggressively by taking more risk. 

    Once you make these determinations, your advisor can assist you in setting up an account structure that is right for you.

     

    How to Enroll

    The District has contracted with The OMNI Group to administer the 403b Tax Shelter Program. Please visit their website at omni403b.com for further information or to download a Salary Reduction Agreement (SRA) to make changes to your existing account. (Please note that while the OMNI SRA has the availability to list multiple Service Providers, you may only choose ONE (1) provider for your payroll deductions.)  To open a new account, please refer to the list of Participating Service Providers that is provided below for your convenience.   Complete and submit your Salary reduction Agreement directly to OMNI.

     

    2021 Maximum Allowable Contribution (MAC) limits

    $20,500 or $27,000 if aged 50 or older

     

    ** If you are a BCSA or BTF employee who is planning to retire, you are required to deposit "termination pay" into a 403b account. The District has up to 60 days from the date of your retirement to make the deposit**

     

    List of Participating Providers

     

    OMNI Salary Reduction Agreement

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    NYS Deferred Compensation 457(b) Plan 

    This is a retirement plan, which is like a 401(k) for public service employees, that can help supplement your pension. It’s specifically designed for those who work for the state or local government, has the flexibility to adjust as your needs change, and can help you turn your salary into a more comfortable retirement.

    There are three approaches to investing with this plan, based on your level of comfort in managing retirement assets.

    • Do It For Me: Retirement Date Trusts – Choose a T. Rowe Price Retirement Date Trust based on when you will reach age 65.
    • Do It Yourself: Create a portfolio of investment options based on your investment strategy and tolerance for risk.
    • Specialty Options: A selection of special interest options such as opportunistic growth, environmental, social, governance, and self-directed.

     

    More information can be found at www.nysdcp.com or by contacting the WNY Representative, Mark Wallace via email mark.wallace@nationwide.com or phone 1-716-903-7253.

     

    If you are already enrolled in the Plan and wish to make changes to your bi-weekly contribution, please contact NYSDCP.

     

    2021 Maximum Allowable Contribution (MAC) limits

    $20,500 or $27,000 if aged 50 or older

     

    Note: you may contribute to both a 403(b) and a 457 NYS Deferred Compensation Account.