Deferred Compensation 457B / 403B

Shawnee Mission School District Code 403(b) Plan
UNIVERSAL AVAILABILITY NOTICE

This notice provides important information regarding the 403(b) plan in which you are eligible to participate (the “Plan”). An employee who is a student-teacher (person providing service as a teacher’s aide on a temporary basis while attending a school, college or university) or who normally works fewer than 20 hours per week is not eligible to participate in the Plan. An Employee normally works fewer than 20 hours per week if, for the 12 month period beginning on the date the employee’s employment commenced, the employer reasonable expects the employee to work fewer than 1000 hours of service (as defined under section 410(a) (3) (C) of the Code) and, for each plan ending after the close of that 12 month period, the employee has worked fewer than 1000 hours of service.

You may want to take this opportunity to either:

1. begin making pre-tax 403(b) elective deferral contributions or
2. review your current elections and decide if you want to make changes. Before making any initial elections or changes, you should be sure to consult the materials provided to you that explain the terms of the Plan
    

WHEN DO I ENROLL?

You are eligible to enroll immediately upon your date of hire.
You can elect your initial elective deferral rate by completing the appropriate application with Corebridge

CAN I CHANGE OR STOP MY ELECTIVE DEFERRAL CONTRIBUTIONS?
You may change your elective deferral contributions per pay period during the plan year. You are permitted to revoke your election at any time during the Plan Year. Changes to your deferral contribution will be made as soon as administratively possible.

WHEN ARE MY ELECTIVE DEFERRAL CONTRIBUTIONS EFFECTIVE?
After completing the enrollment requirements, your elective deferral contributions will begin soon as administratively possible.
WHAT IS THE MAXIMUM AMOUNT THAT I CAN CONTRIBUTE?
The IRS limits the annual contributions you can make to a 403(b) plan and the limits are adjusted each year.
Below are the limits for 2026:

• Elective Deferral Limit, $24,500
• Age 50 Catch-up, $8,000
• Special 15 years of service catch-up $23,000 $7,500 $3,000 maximum

(If both the age 50 catch-up and the special catch-up apply, the special catch-up applies first to its maximum extent, and then age 50 catch-up applies).

WHO DO I CONTACT FOR ADDITIONAL INFORMATION?
To learn more about 403(b) plans, please visit http://www.irs.gov and search for Publication 571. If you have any questions about how the Plan works or your rights and obligations under the Plan, please contact: Jennifer Lumley 913-993-6497 JenniferLumley@smsd.org

General Description of 457 Retirement Plan

1. What is a 457 plan? A 457 plan is a tax-favored retirement plan established under Section 457 of the Internal Revenue Code, which permits eligible employees to make salary deferrals on a pre-tax basis in order to both save on income taxes and build up retirement funds.

2. Who is eligible to participate in the school district’s 457 plan? All employees who normally work 20 or more hours per week are eligible to participate. Further, substitutes working at least 1000 hours per calendar year may also participate.

3. How much can an employee contribute to the 457 plan? The Internal Revenue Code sets limits on the amount that an employee can contribute to a 457 plan. That limit for 2026 is $24,500. This is the basic annual limitation for a calendar year. An employee must contribute the annual minimum deferral amount of $240 to participate.

4. How do I begin, change or end deferrals to the 457 plan? Contact a Corebridge Financial Advisor or at www.corebridgefinancial.com/rs/home

5. If I am over 50, can I contribute more to the 457 plan? An employee who has attained age 50 or more by the end of the calendar year is permitted to elect an additional amount. The maximum amount for 2024 $8,000, subject to a cost-of-living adjustment for subsequent years. There are special catch up rules that apply to those participants within 3 years of Normal Retirement Age. Please see agents for more details.

6. When can I start collecting disbursements from the 457 plan? Distributions may not be made earlier than the earliest date on which a participant has a severance from employment for any reason including the employee’s death,disability, or retirement. The plan does include provisions which allow in-service access to 457 plan assets including loans and withdrawals.

7. What companies may I use to invest my deferrals? he school district has designated investment products available for the plan from Corebridge Financial. Agent contact information is available on the district website and through the benefits office. Please note that you have the sole authority and discretion to select and direct investment of all of the assets in your account among the investment funds provided by these four companies. You accept full and sole responsibility for the success or failure of any investment selection you make.

*If the summary and plan document do not agree, the plan document will dictate all provisions.

General Description of  403(b) Retirement Plan 

1. What is a 403(b) plan? A 403(b) plan is a tax-favored retirement plan established under Section 403(b) of the Internal Revenue Code, which permits eligible employees to make salary deferrals on a pre-tax basis in order to both save on income taxes and build up retirement funds.  Please note:  the plan is designed as a retirement plan.  No loans, hardship withdrawals, or distributions prior to severing employment with the district are allowed under the plan.

2. Who is eligible to participate in the school district’s 403(b) plan? All employees who normally work 20 or more hours per week are eligible to participate.  Further, substitutes working at least 1000 hours per calendar year may also participate.

3. How much can an employee contribute to the 403(b) plan? The Internal Revenue Code sets limits on the amount that an employee can contribute to a 403(b) plan.  That limit for 2026 is $24,500.  This is the basic annual limitation for a calendar year.  An employee must contribute the annual minimum deferral amount of $200 to participate.

4. How do I begin, change or end deferrals to the 403(b) plan? Contact a Corebridge Financial Advisor or at                         www.corebridgefinancial.com/rs/home

5. If I am over 50, can I contribute more to the 403(b) plan? An employee who has attained age 50 or more by the end of the calendar year is permitted to elect an additional amount.  The maximum amount for 2026 is $8,000, subject to a cost-of-living adjustment for subsequent years.

6. I am a long-time employee of the school district.  Can I defer even more to the 403(b) plan? If you have 15 years of service or more with the school district, the basic limit on elective deferrals may be increase by up to $3000 per year with a lifetime limit of $15,000.  To participate in both the “fifteen-year catch-up” and also over age 50, limitations exist.  Contact a company agent for more information. 

7. When can I start collecting disbursements from the 403(b) plan?Distributions may not be made earlier than the earliest date on which a participant has a severance from employment for any reason including the employee’s death, disability, or retirement.

8. What companies may I use to invest my deferrals? The school district has designated investment products available for the plan from Corebridge Financial. Agent contact information is available on the district website and through the benefits office. Please note that you have the sole authority and discretion to select and direct investment of all of the assets in your account among the investment funds provided by these four companies.  You accept full and sole responsibility for the success or failure of any investment selection you make.

*If the summary and plan document do not agree, the plan document will dictate all provisions.