What is a 403(b) Plan? A 403(b) plan or tax-sheltered annuity (TSA) is a retirement plan for certain employees of public schools. Individual accounts in a 403(b) plan can be an annuity contract which is a contract provided through an insurance company or a custodial account which is an account invested in mutual funds.


What are the benefits of a 403(b)? Contributions to a 403(b) plan are pre-tax and are excluded from your income as reported on your Form W-2 at year end. You do not pay tax on your contributions, earning or gains until you begin making withdrawals, usually after you retire.


How do I start a 403(b) account? You start the program by completing a salary reduction agreement with your annuity company.


How are contributions made to my 403(b) account? Contributions are made under a salary reduction agreement. This agreement allows Red Creek Central School to withhold money from your earnings to be contributed to your 403(b) account. You will not pay tax on these contributions until you withdraw them from the account.


Can I change the amount of contribution? Yes. This agreement is between you and your agent and will result in a new salary reduction agreement.



Red Creek Central School District currently sends payments to the following companies listed on our deduction register:



American Century

American Funds

Companion of New York



First Investors

The Guardian

Hartford Life Insurance Co.

IDS Life



Nationwide Life Insurance Co.

Northwestern Mutual

Oppenheimer Funds

Phoenix Home Life


Putnam Investments

T. Rowe Price

Templeton Securities


Unity Mutual


You may contact any advisor from the above companies to set up a TSA. Your advisor will send us your salary reduction agreement indicating the amount you desire to be contributed to your annuity.


If you have any questions, please feel free to contact the District Office at 754-2019.