403B - Empower
Empower: Saving, investing and advice (empower-retirement.com)
Illinois Eastern Community College, District 529 offers all employees the opportunity to participate in a 403(b). A 403(b) plan is a tax-deferred retirement savings account offered to employees of nonprofit organizations, including public schools, hospitals, museums, churches, and charitable organizations. It's easier to think of the 403(b) plan as a 401(k) for the nonprofit sector. Whereas public employers do not have to offer 401(k) plans to their employees, all full-time, and most part-time nonprofit employees are eligible to participate in a 403(b) plan. A 403(b) plan might also be known as a tax-sheltered annuity or TSA plan.
Participation is voluntary, but this is YOUR plan and it is available for part-time and full-time employees alike to utilize.
Your elective deferrals go into the plan on either a pre-tax or post-tax (ROTH) basis. Pre-tax contributions reduce your current taxable income, but all retirement eligible withdrawals from the Plan, including earnings, are returned to you as taxable income. Post-tax (ROTH) contributions do not impact your current taxable income, but all retirement eligible withdrawals the Plan, including earnings, are returned to you as non-taxable income. You should consult a tax or investment advisor to determine which contribution is best for you. There are limits on annual contributions: 403(b) contribution limits for 2024.
New employees to the District are eligible to participate in the Plan for purposes of making elective deferrals as of their date of hire. Current employees who have not previously enrolled may do so at any time. Contributions to the plan will begin the first day of the following month after enrollment.
Click to view the video below and learn more about your plan:
