The Salary Reduction Agreement is required by your school district to establish, change or stop your 403(b)-retirement plan contribution. By completing this form, you are telling payroll how much you want deducted from your paycheck and contribute to your retirement plan. I have included samples from a commonly used salary reduction agreement among school districts in Minnesota; versions may vary. This is to be used as a general reference guide.
This section is rather self-explanatory except for 3 locations.
Part Two: Complete left to right.
****Stop and answer: “Is this a new 403(b), a change to an existing 403(b) contribution or are you stopping your deferral? Are you contributing Roth or pretax?”
1. Salary Reduction - 3 rows and 3 columns:
Please enter an “X” in the appropriate row and column of your intended contribution.
Service Provider – Please write in the name of your 403(b) Vendor/provider in the row you placed the “X”. If you do not know your current 403(b) vendor, look on your paycheck stub.
2. Employee - Salary Reduction Amount Pay Period – How much do you want to contribute per pay period? Write the amount on the line you placed the “X”.
Contribution – Annualized Salary Reduction Amount – the amount you wrote per paycheck column to the left, multiply by your number of pay periods.
3. Employer Match – Employer Match/Percent per Pay Period - The IRS mandates matching dollars may only be given by the employer (district) pretax.
Part Three: Catch Up Provision - This section is for investors who wish to contribute more than the standard limit of $19,500 in 2020.
Part Four: Required disclosures, please review.
Employee Signature – Please sign and date.
Please fax (952-955-8216) or email (firstname.lastname@example.org) your completed Salary Reduction Agreement to me. If you email, I encourage you to use encrypted email due to your social security number required on the form.
I need to sign and date Part Six confirming the account is in good order to receive contributions.
If you have additional questions regarding your 403B financial planning or financial coaching, please visit my website www.classic–financial.com, and click on the green “Book an Appointment” tab in the upper righthand corner of the homepage to schedule a time to talk with me.
Disclosure: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeding investment advice specific to your needs, such advice services must be obtained on your own, separate from this educational material. 1-05051891