Collin County Community College District (Collin College)

403(b) TAX DEFERRED ACCOUNT (TDA) PROGRAM

TO ALL BENEFITS-ELIGIBLE EMPLOYEES:

You are eligible to participate in an Internal Revenue Code Section 403(b) voluntary tax deferred savings account program referred to as a Tax Deferred Account or TDA, in addition to your mandatory state retirement program through either 1) the Teacher Retirement System of Texas or TRS, or 2) the Optional Retirement Program or ORP.

Enrollment in a voluntary TDA allows you to have a portion of your salary, as determined by you, deducted from your payroll check each month on a pre-tax basis, which is then invested in your choice of a variety of mutual fund and/or annuity products. See the list of vendors who are authorized by Collin College to offer these products to eligible Collin College employees.

In deciding whether or not to participate in a TDA or in reviewing vendors, talk to the vendor’s authorized representative, read the vendor’s prospectus for particular investments, and ask questions about their company, products, and service. Some key elements you should consider include the interest rates offered (including historical fund performance), fees charged by the company, restrictions for transferring your contributions to a different authorized vendor, restrictions for withdrawing deposits, etc. You may wish to discuss minimum distribution requirements, rules regarding withdrawals and taxation, and rollovers of funds into other types of accounts like IRAs.

It is the employee’s responsibility, working closely with the TDA vendor representative, to know and abide by the annual tax-sheltering contribution limits set by the IRS for 403(b) plans. You can contribute anywhere from a monthly amount proportional to the annual maximum amount to as little as the minimum contribution of $25 per month.

To enroll in a TDA, consult with the Collin College authorized representative for the company with which you wish to enroll. This representative will have the required enrollment forms:

1) TDA company’s 403(b) account application/beneficiary form and

2) Collin College’s Salary Reduction Agreement Form (SRA).

Collin College’s Maximum Contributions Calculation Worksheet (MCC) is required only for employees contributing the max using the 15-years of service catch-up provision.

These forms must be turned in to Human Resources, Central Park Campus (CPC), and the effective date of participation is the first of the next month’s payroll period after receipt of the required forms by Human Resources at CPC.

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Melanie Tracht

Copyright 2003-06 (Collin College)

Last reviewed or revised 05/2006