Dr. Gwendolyn W. Stephenson District Administration Center


 403(b) Contribution Form           403(b) Plan Document    

457(b) Contribution Form 

403b’s are also known as Tax Sheltered Annuities (TSA). 403b/TSA plans are retirement for schools, hospitals, and non-profit organizations.

For the most part 403b’s follow most of the same rules and regulations as 401k plans.


  • 403b plan can be combined with a 457 plan.
  • The program is voluntary.
  • Employees who want to participate in a TSA designate a portion of their salary to contribute on a per pay basis.
  • Contributions are pre-taxed and are automatically deducted from the payroll. State Federal income taxes are then calculated on remaining pay. Pre-tax contributions lower taxable income.
  • Contributions to your TSA are not taxed until money is withdrawn.


As a plan participant, you will benefit in many ways

  • Reduce your taxable income while saving pre-tax dollars.
  • Gain interest in your tax deferred investment.
  • Select the investment companies and funds you want to participate in.
  • Access your money through loans and withdrawals when necessary.
  • Have contributions automatically deducted from your paycheck.

Dividends and investment earnings grow tax deferred until they are withdrawn after age 59 ½ at which time the withdrawals will be taxed as income. Withdrawals prior to age 50 ½ usually incur an additional 10% penalty. However, most 403b plans allow investors to take out a loan. Both principal and interest are paid back to your 403b account through automatic payroll deduction.