Learn About 403(b) Tax Deferred Annuity Plans (TDAs)


If you are employed by a public school or a 501(c)(3) tax-exempt organization, you may have an opportunity to participate in your employer-sponsored 403(b) tax deferred annuity retirement plan as an additional way to save toward retirement.

A 403(b) plan is an employer-sponsored plan. So, your employer determines who is eligible to participate in the 403(b) plan and identifies the investment providers available under the 403(b) plan.

Participating in a 403(b) plan offers many advantages:

How much can I contribute?
You can make pre-tax salary deferral contributions (and/or Roth 403(b) contributions if your plan permits) to the 403(b) plan. The total annual amount of pre-tax and Roth contributions you contribute generally cannot be more than the yearly amount set by the IRS.

In addition, your plan may allow you to take advantage of two catch-up contribution options offered by the IRS:

Please refer to www.voya.com/IRSlimits for current limitations.

When can I take distributions?
While your plan will determine when you can take distributions, IRS rules allow you to access amounts you have contributed to your 403(b) plan when you have a severance from employment, become disabled, have a hardship or reach age 59½. If your plan permits employer contributions, your plan will indicate whether these amounts can be withdrawn under the same rules or whether different reasons will apply. Your beneficiary may take a distribution of your account upon your death. Since your employer's 403(b) plan may not permit certain types of distributions, be sure to check with your employer about specific reasons for distribution permitted under your plan.

Distributions from your 403(b) plan before you reach age 59½ are generally subject to an IRS 10% premature distribution penalty tax, unless an IRS exception applies.

Once you are retired, IRS rules require you to begin taking distributions from your 403(b) plan by April 1 of the calendar year following the calendar year in which you are at least age 70½.

Your distribution from the 403(b) plan can be paid in an option available under the investment provider's product. In the alternative, to the extent permitted under IRS rules, you can roll over the eligible portion of your distribution to an IRA or a 401(a), 401(k), another 403(b) or a governmental 457(b) plan that accepts rollovers.

If your 403(b) plan permits, you may be eligible to take a loan from your account balance.

This information is provided by Voya for your education only. Neither Voya nor its representatives offer tax or legal advice. Please consult your tax or legal advisor before making a tax-related investment/ insurance decision.

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