What is a §403(b) tax-sheltered savings plan?

IRS Code §403(b) authorizes a tax-sheltered savings plan available to employees of public educational institutions. The plan provides an opportunity for employees to save for retirement with pretax dollars and defers taxation on income and earnings until they are withdrawn during retirement.

Why contribute to the Montgomery County Public Schools §403(b) plan?

Remember, §403(b) plans encourage long-term retirement savings. Income taxes are paid at withdrawal when you may be in a lower tax bracket. Withdrawals before age 59½ are subject to restrictions and a potential 10 percent tax penalty.

For additional information about participation in the tax-sheltered savings plan, vendor options, and enrollment forms, please visit the Employee and Retiree Service Center (ERSC) Web site at www.montgomeryschoolsmd.org/departments/ersc.

You also may contact ERSC at 301-517-8100 or via e-mail at ersc@mcpsmd.org.

Notice: MCPS does not review, approve, or endorse any of the investment options that may be offered by any vendor in connection with the plan. As a plan participant, you are solely responsible for the review and selection of any and all plan investment options. Not all investment options offered by vendors may be appropriate or suitable for plan investments. You must review them carefully before making any investment decisions. Neither MCPS nor any of its employees has any liability or responsibility for investment options that you select.