Collin College Logo
403(b) Tax Deferred Accounts
403(b) Tax Deferred Account (TDA) Information

TO ALL FULL TIME BENEFITS-ELIGIBLE EMPLOYEES:
You are eligible to participate in a retirement 403(b) voluntary tax deferred savings account program referred to as a Tax Deferred Account or TDA.  This is in addition to your mandatory state retirement program through either 1) the Teacher Retirement System of Texas or TRS, or 2) the Optional Retirement Program or ORP.

 Enrollment in a voluntary retirement TDA allows you to have a portion of your salary, as determined by you, deducted from your payroll check each month on a pre-tax basis, which is then invested in your choice of a variety of mutual fund and/or annuity products. See the list of vendors who are authorized by Collin College to offer these products to eligible Collin College employees. 

 In deciding whether or not to participate in a TDA or in selecting a vendor, talk to the vendor’s authorized representative, read the vendor’s prospectus for particular investments, and ask questions about their company, products, fees, and service.  Some key elements you should consider include the interest rates offered (including historical fund performance), fees charged by the company, restrictions for transferring your contributions to a different authorized vendor, restrictions for withdrawing deposits, etc.  You may wish to discuss minimum distribution requirements, rules regarding withdrawals and taxation, and rollovers of funds into other types of accounts like IRAs. 

It is the employee’s responsibility, working closely with the TDA vendor representative, to know and abide by the annual tax-sheltering contribution limits set by the IRS for 403(b) plans.  You can contribute a monthly amount as little as $25 up to the maximum allowed by law.  Tax deferred retirement contributions are controlled by IRS guidelines which among other things, limits when withdrawals are allowed.  Generally, withdrawals are allowed only for documented qualifying financial hardship or at age 59 ½. 

To enroll in a TDA, consult with the Collin College authorized representative for the company with which you wish to enroll.  This representative will have the required enrollment forms:

  1. TDA company’s 403(b) account application/beneficiary form and  
  2. Collin College’s Salary Reduction Agreement Form (SRA).

A Maximum Contributions Calculation Worksheet (MCC) is required only for employees contributing the max using the 15-years of service catch-up provision.  Your vendor representative will provide you with that calculation. 

These forms must be turned in to Human Resources, Collin Higher Education Center (CHEC), and the effective date of participation is the first of the next month’s payroll period after receipt of the required forms by Human Resources at CHEC.


Maximum Contribution Amounts Per Tax Year Calendar
  

Tax Year

Total General Limit
Annual Maximum

Age-Enhanced Extra
(Age 50+ Dec. 31 of Tax Year)

Total Annual Maximum
If 50+

2008

$ 15,500

$  5,000

$ 20,500

2009

$ 16,500

$  5,500

$ 22,000

2010

$ 16,500

$  5,500

$ 22,000

2011

$ 16,500

$  5,500

$ 22,000

2012

$ 17,000

$  5,500

$ 22,500

2013

$ 17,500

$  5,500

$ 23,000

2014

$ 17,500

$  5,500

$ 23,000

2015

$ 18,000

$  6,000

$ 24,000