Supplemental Retirement Plans for Your Future

Supplemental retirement plans can provide a financial safety net for your golden years, and it's essential to consider them as part of your overall retirement strategy.

A SEP-IRA, for example, allows business owners to contribute up to 25% of their income to a retirement plan, with a maximum contribution limit of $57,000 in 2022.

You can also consider a Solo 401(k), which allows self-employed individuals to contribute up to 20% of their income to a retirement plan, with a maximum contribution limit of $57,000 in 2022.

Having a supplemental retirement plan in place can provide peace of mind and financial security, knowing you're prepared for the future.

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You can save up to the IRS limits in a 403(b) Plan, which is a supplemental retirement plan that allows you to save extra for your future. The balance you'll have at retirement is determined by your contributions, plus accumulated earnings on those amounts.

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The 403(b) Plan is similar to other supplemental retirement plans, but it has some unique features. You can choose from a mix of investment options, and withdrawals are permitted upon separation or after age 59½.

You can enroll in the 403(b) Plan online or contact Fidelity or TIAA representatives for more information. The plan ID is 55468.

Here are some key features of the 403(b) Plan:

The 403(b) Plan offers flexibility, allowing you to make pre-tax or Roth after-tax contributions, or both.

If you're interested in enrolling in a 403(b) or 457(b) plan, you can find instructions on how to do so in the relevant sections of your plan documents.

To make changes to your 403(b) plan, you'll need to follow the specific instructions outlined in your plan documents.

The 457(b) plan allows you to manage your account, which includes making changes to your contributions or investment options.

Consider enrolling in the VRS Hybrid 457 component of your retirement plan if you want to receive a partial matching contribution from FCPS.

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If you're a VRS Hybrid plan member, you can contribute more to your Hybrid Retirement Plan and receive a partial matching contribution from FCPS by enrolling in the VRS Hybrid 457 component.

Enrolling in the VRS Hybrid 457 component is a great way to boost your retirement savings.

To learn more about the VRS Hybrid 457 component, visit the VRS Hybrid 457 website.

To enroll or make changes to your 403(b) plan, you can follow the instructions provided by Fidelity Investments or TIAA, the investment providers for the plan.

You can enroll online using the button provided on the plan's website or contact Fidelity or TIAA representatives for assistance.

To make changes to your 403(b) plan, you can refer to the "403(b) How to Make Changes" section, which outlines the steps you need to take.

You can also review the "403(b) Enrollment Instructions" to ensure you have all the necessary information.

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The 403(b) plan allows rollovers from other retirement accounts, so if you have existing retirement savings, you can roll them over into your 403(b) plan.

The plan also permits loans and hardship withdrawals, so you can access your savings in times of need.

Here is a summary of the 403(b) plan's key features:

If you're interested in deferring your bonuses, you can do so up to 100% of eligible bonuses earned during the plan year. This is known as a bonus deferral election.

To take advantage of this option, you'll need to participate in the SRP for at least one year first. This allows you to make a one-time election to defer up to 100% of your eligible bonuses.

You can review the 457(b) Deferred Compensation Plan for more details on this option. The plan allows you to withdraw funds without penalty upon separation from service, regardless of your age.

Here are the details on bonus deferral elections:

You can set aside money for retirement by contributing pre-tax or after-tax monies from your pay.

Pre-tax contributions lower your taxable income and could reduce your current income taxes. With pre-tax contributions, you defer taxes on interest and earnings until you withdraw your money.

After-tax contributions to a Roth account mean that you'll pay income taxes on your contributions now, but qualified distributions from a Roth account are tax-free.

The IRS limits the annual contributions you can make to a 403(b) and 457(b) plan. For 2024, the limit is $23,000 for those under 50, and $30,500 for those 50 and older.

Here are the annual contribution limits for 403(b) and 457(b) plans for 2024 and 2025:

You can contribute the lesser of 100% of your taxable income up to the maximum amounts posted above.

Investing and account management are crucial aspects of supplemental retirement plans. You can allocate your contributions to one or more of the three retirement plan providers: Corebridge Financial, Fidelity Investments, and TIAA.

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Each provider offers USG's enhanced, four-tiered investment menu, featuring a wide array of fund options, interactive financial planning tools, and high-quality customer service. This helps you create a diversified retirement portfolio.

You can access more information about your investment options by visiting OneUsgConnect and clicking on "Research Your Investments" within the Retirement@Work section. This will provide you with a comprehensive overview of the investment choices available to you.

Your investment options include a collection of Core Funds of different asset classes and risk/reward potential, as well as Style Funds, which are pre-mixed, diversified funds. These funds provide a quick and easy method for diversifying your investments with a single selection.

Here are the three retirement plan providers and their corresponding brokerage guides:

For experienced investors seeking maximum flexibility, USG offers a self-directed brokerage option that allows you to select from a wide array of mutual funds, individual stocks, and Exchange-traded funds (ETFs).

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When you're considering a supplemental retirement plan, it's essential to understand the benefits and differences between 403(b) and 457(b) plans.

Both 403(b) and 457(b) plans offer immediate 100% vesting, meaning you own the contributions from day one.

The IU 457(b) Retirement Plan has a $45 annual recordkeeping fee, whereas the IU TDA Plan 403(b) has a $28 annual recordkeeping fee.

You can make pre-tax and Roth (after-tax) contributions to both plans, and contributions can be made through flat-dollar or percentage of pay methods.

The 403(b) plan has a contribution limit of the lesser of your annual compensation or $70,000 for 2025, while the 457(b) plan has a total contribution limit of $23,500 for 2025, plus applicable catch-up amounts.

You can roll over funds from a 457(b) plan to another qualified plan or an IRA, but not from a 403(b) plan.

The 457(b) plan allows loans, while the 403(b) plan does not.

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Here's a comparison of the two plans:

The 457(b) plan does not have an early withdrawal penalty, but the 403(b) plan does, with a 10% penalty on distributions prior to age 59½.

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To administer a supplemental retirement plan, you'll need to keep track of various documents. The ORP Plan Document is a key starting point, available for download in PDF format.

The plan documents for the Voluntary 403(b) Plan also come in PDF format, with the First Amendment and Second Amendment providing important updates to the original document.

Having a clear understanding of the plan documents is crucial for making informed decisions about your supplemental retirement plan.

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Plan documents are essential for administrators to keep track of plan changes and updates. You can find the 457(b) plan document, which outlines how to make changes to the traditional pre-tax plan.

Traditional 457(b) plans can be modified, but it's crucial to follow the plan documents. The first amendment to the voluntary 403(b) plan document and the second amendment to the same document are also available for reference.

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ORP and 403(b) plan documents are available in PDF format for easy access. The ORP plan document and the voluntary 403(b) plan document are two examples of these documents. You can also find the first and second amendments to the voluntary 403(b) plan document.

403(b) and 457(b) plan documents are crucial for administrators to understand the plan's terms and conditions. The 403(b) plan document outlines the enrollment instructions, and the 457(b) plan document explains how to manage your account.

SRP Vesting is a crucial aspect of your benefits package.

You become 100% vested in company base contributions and earnings on those amounts after completing three years of vesting service.

To clarify, vesting service is a milestone that marks your progress in the company.

Retirement from the company is another way to become fully vested, but only if you reach age 65 or older.

If you become permanently disabled or die while actively working at a Baker Hughes company, you'll also be 100% vested in your SRP.

Here are the specific scenarios where you become 100% vested in company base contributions and earnings: