403(b) and 457(b) Plans

A 403(b) plan is a tax advantaged retirement savings investment plan available for school employees.  All SBCC employees (except student workers) may contribute a portion of salary into a 403(b) plan. Payroll deduction salary deferral can be made pre-tax that allows you to receive a tax deduction in the year of the salary deferral and all earnings on your account balances are also tax deferred. You are then able to defer all income taxes until you withdraw money from your account. Deferrals can also be made post-tax, known as Roth 403(b), so you are paying the income taxes today on your contributions. The earnings on your account balance are tax deferred and when you retire you never pay income tax on any of the income distributions you receive (subject to IRS requirements). 

A 457(b) Deferred Compensation Plan (457 Plan) is a tax-favored retirement saving investment plan available to school employees. All SBCC employees (except student workers) may contribute a portion of their salary into a 457(b) plan. Payroll deduction salary deferral can be made pre-tax that allows you to receive a tax deduction in the year of the salary deferral and all earnings on your account balances are also tax deferred. You are then able to defer all income taxes until you withdraw money from your account. Deferrals can also be made post-tax, known as Roth 457(b), so you are paying the income taxes today on your contributions. The earnings on your account balance are tax deferred and when you retire you never pay income tax on any of the income distributions you receive (subject to IRS requirements).

A complete listing of approved 403(b) and 457(b) Providers can be found at https://envoy.tsacg.com/index.php?e=3908.

See the chart below for the maximum contribution limits for 2021.

Year	403(b) TSA	457(b) DCP	Total
2021 Basic Limit	$19,500	$19,500	$39,000
Age 50+  Catch-up	$ 6,500	$6,500	$13,000
Total	$26,000	$26,000	$52,000

 

• Go to www.envoyplanservices.com
• Click onto Client Center; then click on your State, County and Employer.
• You are now on your Employer’s home page on the Envoy Plan Services Website
• 403(b) and 457(b) Providers – A complete list of Approved Providers currently available are listed on the Employer’s home page
• Forms Tab – A Forms Tab is at the top of the home page. Clicking on this tab will provide you with Definitions, Enrollment Procedures, Plan Highlights, Salary Reduction Agreements (SRAs), Transaction Request Instructions and the Transaction Request Form. Please download applicable forms and read carefully
• Frequently Asked Questions – A list of frequently asked questions and the responses to these questions is provided for your reference.
• Educational Videos are provided for your viewing.

Note: If you have a 403(b) or 457(b) account with a previous employer, you must establish a new account to enroll in these Plans. Your salary deferral contribution into this Plan cannot be invested in the 403(b) or 457(b) Plan of a previous employer.

1. Locate the provider of your choice from the list on your Employer’s home page.
2. Contact information is listed for each approved provider.
3. Contact that Provider directly to request enrollment forms and instructions.
4. Work directly with the provider to complete their enrollment process. (Envoy Plan Services will not accept Provider enrollment forms).

After you have established your account, you will need to submit a completed SRA to begin your payroll deduction contributions.

Paper: To obtain a paper SRA form login to the website at www.envoyplanservices.com

1. Click on Customer Service Center
2. Click on your state, then country, then your Employer’s section
3. Click on the Forms tab, then Salary Reduction Agreement
4. Complete the SRA form (it is a fillable PDF file), print it, sign and date and fax it to Envoy’s toll free fax number 877-513-2272.

Online: To submit an online SRA logon to Envoy’s website at www.envoyplanservices.com and click on the red Login Button at the top right of the page.

1. Username: enter your Social Security Number (SSN)
2. Password: your default password will be the last 4 digits of your SSN
3. If this is your initial login, go to the next page for instructions on how to change your password to a more personal and secure one. Otherwise, you will be directed to the Main Menu.
4. The SRA must be received by Envoy no later than the last business day of the month prior to the month that you want your first payroll deduction or the date you would like the change(s) to be effective.

Transactions for the Plan include: loans, transfers, rollovers, contract exchanges, and all distributions.

• All transactions must be sent to Envoy for approval prior to submission to your provider for processing.
• To submit a transaction request to Envoy for approval follow the steps below.

Paper:         

1. Contact your provider and request their specific paperwork
2. Go to Envoy’s website and obtain the Transaction Request Form and Instructions (located from Envoy’s website home page under Forms and Tools)
3. Complete and mail all of the paperwork to Envoy at the address below, or you can fax the paperwork toll free at 877-513-2272.

Online:

1. Logon to Envoy’s website at www.envoyplanservices.com and click on the red Login Button at the top right of the page
2. Username: enter your Social Security Number (SSN)
3. Password: your default password will be the last 4 digits of your SSN
4. If this is your initial login, go to the next page for instructions on how to change your password to a more personal and secure one. Otherwise, you will be directed to the Main Menu.