403(b) ANNUITY PROGRAM
SAVE FOR YOUR FUTURE
IMPORTANT INFORMATION
EPISD's Administrator is JEM Resources Partners:
1-800-943-9179
In accordance with EPISD Policy GKDA (Legal), the District does not endorse the solicitation
of any tax deferred or other benefit plan on any campus/department. Contact the Director, Employee Benefits for more information.
For Frequently Asked Questions (FAQs) about the 403(b) Program go to:
www.403bwise.com
IRS ANNUAL CONTRIBUTION LIMITS
TAX YEAR 2012
$17,000
$ 5,500 Additional contribution for age 50
and older
TAX YEAR 2011
$16,500
$ 5,500 Additional contribution for age 50
and older
It's never too early or too late to start investing towards your retirement!
El Paso Independent School District offers employees the opportunity to participate in a "before tax" retirement savings plan.
The El Paso Independent School District has chosen to have the 403(b) Plan administered through the Region 10 Retirement Asset Management Services (RAMS)* program.
The Region 10 RAMS 403(b) Administration Services are offered to public school districts and other education agencies in Texas.
JEM Resource Partners (JEM) is the third party administrator contracted through Region 10 to provide this service.
HOW TO GET STARTED
Vendors who (a) are on the approved list of 403(b) vendors products published
by the Texas Teacher Retirement System (TRS) and (b) agree to follow EPISD'S
403(b) plan rules and meet the administrative requirements necessary to keep the plan in compliance with federal and state laws will be available in the plan.
- All 403(b) agreements are done online at http://www.region10rams.org/contact
- Choose both a vendor and a product when you set up a payroll deduction.
- Use the website to view your account balance with participating vendors in the plan.
- You are required to request distributions and loans through http://www.region10rams.org/home.
As of January 1, 2009, EPISD is required to operate under a Written Plan that complies with IRS rules. EPISD's Written Plan is available by going to the Region 10 RAMS website http://www.region10rams.org/plan-descriptions, selecting "403(b)" and selecting EPISD.
JEM is completely independent of the investments and vendors offered in the plan and JEM will not sell 403(b) products to employees.
WHO SHOULD PARTICIPATE?
Every eligible employee of the District should supplement his or her Teacher Retirement System Account. Careful planning for your retirement years should begin early so that your money can work for you and your financial future
DO YOU KNOW HOW MUCH YOU CAN REDUCE YOUR TAXABLE INCOME AND ALSO COMPOUND YOUR RETIREMENT SAVINGS?
Take a look and compare saving pre-tax vs. post tax
| Employee #1 | Employee #2 | |||
|---|---|---|---|---|
| Gross income: | $2000 | Gross income: | $2000 | |
| Tax (25%): | $500 | Save/Invest(Pre-tax): | $400 | |
| Take home pay: | $1500 | New taxable gross: | $1600 | |
| Save/Invest (Post-tax): | $400 | Tax (25%): | $400 | |
| Net Take Home Pay: | $1100 | Net Take Home Pay: | $1200 | |
Save More and Take Home More!
All contributions are deducted from your paycheck before income taxes are withheld. For the tax year in which you contribute, your income may fall in a lower tax bracket, resulting in lower taxes paid to the IRS. Contributions grow tax-free and any earnings are also tax deferred until they are withdrawn. You will usually be in a lower tax bracket at retirement.
- You can contribute up to the Maximum Yearly limit of $17,000.
- There are other contributions available under special circumstances:
- Catch-Up >50 Provision allows you to contribute an additional $5,500 if you are over the age of 50.
For further information on the 403(b) Program, you may also contact: Kim Dean, Employee Benefits Coordinator at 915-881-2637