Get the free 403(b) and 457(b) Plan Salary Reduction Agreement

This document serves as a formal agreement for employees of Ball State University to participate in the 403(b) and 457(b) retirement plans by electing salary reduction contributions.

How to fill out 403b and 457b plan

How to fill out 403(b) and 457(b) Plan Salary Reduction Agreement

1. Obtain the 403(b) and 457(b) Salary Reduction Agreement form from your employer or plan administrator.
2. Read through the instructions carefully to understand the contributions allowable.
3. Fill in your personal information, including your name, Social Security number, and employment details.
4. Specify the percentage or dollar amount you wish to contribute to your 403(b) and/or 457(b) plans.
5. Indicate the frequency of the contributions, such as per paycheck or monthly.
6. Review the information entered for accuracy.
7. Sign and date the form to authorize the salary reduction.
8. Submit the completed form to your employer or plan administrator for processing.

Who needs 403(b) and 457(b) Plan Salary Reduction Agreement?

1. Employees of eligible tax-exempt organizations, such as non-profits and educational institutions, who wish to save for retirement.
2. State and local government employees looking for tax-advantaged retirement savings options.
3. Individuals aiming to reduce their taxable income through pre-tax contributions.

People Also Ask about

What is the meaning of salary deduction?

A payroll deduction is a specific amount of money subtracted from an employee's gross pay before the net pay is calculated. These deductions include various withholdings, such as taxes, insurance premiums, retirement contributions, and other authorized expenses.

What is the word for salary reduction?

A salary reduction is also known as a wage reduction or pay cut.

What is the difference between 403 B and 457 B?

If you've made contributions to a 457(b) plan from a previous employer, you can withdraw them at any time without paying an early-withdrawal penalty. 403(b) plans, by contrast, generally incur a 10% withdrawal penalty on any withdrawal made before 59½.

What does it mean to cut down salary?

A salary cut is what happens when your employer reduces your pay. The amount of a salary cut can vary depending on your job position and the situation responsible for the pay decrease. Salary cuts can mean a reduction in pay without a change in your work responsibilities.

What is the meaning of employee reduction?

A layoff, also known as employee reduction, is the downsizing of an organization's workforce by suspension or permanent termination of a worker or group of workers by the employer. Layoffs to an employee are not given due to their performance or breach of duty.

What is the meaning of salary reduction?

Salary cuts can mean a reduction in pay without a change in your work responsibilities. Sometimes an employer will specify an amount of time for a salary reduction or a set of circumstances in which your regular pay will go back to the normal amount before your pay cut.

What is a 403b plan and how does it work?

A 403(b) plan (tax-sheltered annuity plan or TSA) is a retirement plan offered by public schools and certain charities. It's similar to a 401(k) plan maintained by a for-profit entity. Just as with a 401(k) plan, a 403(b) plan lets employees defer some of their salary into individual accounts.

For pdfFiller’s FAQs

What is 403(b) and 457(b) Plan Salary Reduction Agreement?

A 403(b) Plan Salary Reduction Agreement is a provision allowing eligible employees, typically in the nonprofit and educational sectors, to contribute a portion of their salary into a retirement plan on a pre-tax basis. Similarly, a 457(b) Plan Salary Reduction Agreement is designed for state and local government employees, allowing them to defer a part of their income into a tax-advantaged retirement account.

Who is required to file 403(b) and 457(b) Plan Salary Reduction Agreement?

Employees who wish to contribute to their 403(b) or 457(b) plan must file the Salary Reduction Agreement. This is typically required for employees of eligible institutions such as schools, nonprofit organizations, and government entities.

How to fill out 403(b) and 457(b) Plan Salary Reduction Agreement?

To fill out the Salary Reduction Agreement, the employee needs to provide personal identification details, the percentage or dollar amount of salary to be contributed, and select the appropriate plan option (403(b) or 457(b)). After filling out the form, it must be submitted to the employer for processing.

What is the purpose of 403(b) and 457(b) Plan Salary Reduction Agreement?

The purpose of the Salary Reduction Agreement is to facilitate the employee's contributions to their retirement plan, allowing them to save for retirement on a tax-advantaged basis while reducing their taxable income for the year.

What information must be reported on 403(b) and 457(b) Plan Salary Reduction Agreement?

The information that must be reported includes the employee's name, social security number, the amount or percent of salary to be contributed, the effective date of the agreement, and the signatures of both the employee and the employer.