Tax Sheltered Annuity & Deferred Compensation Program
The Board of Education of The School District of Springfield R-12 offers Tax Sheltered Annuity (403(b)) and Deferred Compensation (457(b)) Programs for all regular employees interested in participating in such a program. Tax legislation allows school district employees to contribute to both plans.
- Section 403(b) and 457(b) provides for the deferment of a portion of income from the payment of Federal and State Income tax for a regular employee who agrees to have his monthly salary reduced by a specified amount to be used for the purchase of an annuity contract or a deferred compensation plan.
- Reductions cannot exceed any annual exclusion allowances and modifications in the agreement cannot be made more than once during the employee’s tax year.
- Companies offering 403(b) and 457(b) plans to district employees must be in compliance with IRS regulations.
- This is a payroll deduction program only – there is no matching contribution by the District.
There are a number of plans and providers available. Consult with an agent on the list of approved providers to select the plan best suited to your individual needs. Read carefully all agreements that you may be asked to sign if you choose to participate in these programs.
