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Retirement Plans
TCG
ABOUT RETIREMENT PLANS
A 403(b) plan is a U.S. tax-advantaged retirement savings plan available for public education organizations.
A 457(b) plan is a tax-deferred compensation plan provided for employees of certain tax-exempt, governmental organizations or public education institutions.
For full plan details, please visit your benefit website: www.mybenefitshub.com/palaciosisd
EMPLOYEE BENEFITS
Plan Comparison
Feature Contribution maximum limits (can contribute to both plans) Retirement Contributions Tax Credit
Early withdrawal penalty tax
Investment options
Investment committee/advisor oversight
Distribution restrictions
Financial Hardship/Unforeseeable Emergency Distributions
Loans
Required minimum distributions 2022: $20,500; $27,000 age 50+ 457(b)
Up to $1,000 ($2,000 if filing jointly) None 2022: $20,500; $27,000 age 50+ 403(b)
Up to $1,000 ($2,000 if filing jointly) 10%
Managed allocations or self-directed mutual funds. Yes, managed by TCG Advisors and Investment Advisory Committee (comprised of superintendents & CFO’s). Funds can be requested upon: • Age 59 • Separation from employer • Disability • Death • Unforeseeable emergency Must be an unforeseeable Emergency. Can include the following criteria is met: • Medical expenses • Funeral expenses • Foreclosure/eviction • Certain hurricanes and natural disasters Fixed/Variable interest annuities or mutual funds/custodial accounts
No
Funds can be requested upon: • Age 59 • Age 55 and/or leaving employer • Disability • Death • Financial hardship Qualified for the following causes: • Medical care • Foreclosure/eviction • Tuition payment • Buying a home • Funeral costs • Home repair costs • Disaster relief
Permitted; loans from all qualified plans limited to the lesser of 50,000 or 50% of vested account balance. Permitted; loans from all qualified plans limited to the lesser of $50,000 or 50% of vested account balance.
RMD rules apply at age 72 or later, severance from service, or after death. RMD rules apply at age 72 or later, severance from service, or after death
Enrollment Guide General Disclaimer: This summary of benefits for employees is meant only as a brief description of some of the programs for which employees may be eligible. This summary does not include specific plan details. You must refer to the specific plan documentation for specific plan details such as coverage expenses, limitations, exclusions, and other plan terms, which can be found at the Palacios ISD Benefits Website. This summary does not replace or amend the underlying plan documentation. In the event of a discrepancy between this summary and the plan documentation the plan documentation governs. All plans and benefits described in this summary may be discontinued, increased, decreased, or altered at any time with or without notice.
Rate Sheet General Disclaimer: The rate information provided in this guide is subject to change at any time by your employer and/or the plan provider. The rate information included herein, does not guarantee coverage or change or otherwise interpret the terms of the specific plan documentation, available at the Palacios ISD Benefits Website, which may include additional exclusions and limitations and may require an application for coverage to determine eligibility for the health benefit plan. To the extent the information provided in this summary is inconsistent with the specific plan documentation, the provisions of the specific plan documentation will govern in all cases.
