Tax Sheltered Annuities
A 403(b) or 457(b) plan, also known as a tax-sheltered annuity plan, is a retirement plan for certain employees of public schools. Employees can elect to set-up a 403(b) or 457(b) in addition to contributing to one of the public retirement plans (Mass. Teachers Retirement System, Worcester Regional Retirement System, Mass.Deferred Compensation SMART Plan-Mandatory OBRA). Please be advised that the Town does not offer "matching funds”.
- CONTRIBUTION LIMIT FOR 2020 is $19,500
- AGE-BASED ADDITIONAL AMOUNT - Participants who are age 50 or older any time during the year qualify to make an additional contribution of up to $6,500.
- SERVICE-BASED CATCH UP AMOUNT - The special catch-up provision allows participants to make additional contributions of up to $3,000 if, as of the preceding calendar year, the participant has completed 15 or more full years of employment with the current employer, not averaged over $5,000 per year in annual contributions, and has not utilized catch-up contributions in excess of the aggregate of $15,000. For a detailed explanation of this provision, please visit http://www.tsacg.com
The Town will work with the financial investment providers listed below. For additional information on Tax Sheltered Annuities or to view the Authorized Investment Providers, please click on the TSA Consulting Group link below:
Salary Reduction Agreement Form may be returned to Dotty Georgiopoulos, Business Office or to Erin Chinappi, Payroll Coordinator.
Financial Investment Company
Karen Maloney – Financial Advisor
AXA Equitable Life Insurance Company
Commonwealth Annuity Life Ins. Co.
Lincoln Investment Planning, Inc.
Michael Tuomala – Financial Advisor – Edward Jones
Mass. Deferred Compensation SMART Plan