03/07/2016 – Access To TSA

C. 3. Approval of Fourth Amendment to the Tax Sheltered Annuity Plan

 03/07/2016 – Work/Business
eboard link icon Agenda Item – Approval of Amendment to TSA

.pdf link icon  Fourth Amendment to the DeKalb County, Georgia Board of Education Tax Sheltered Annuity Plan; As Amended and Restated Effective February 12, 2003

The school district’s Tax Sheltered Annuity (TSA) Plan provides the opportunity for tax deferred investments for DeKalb School employees.  From 1983 to 2009 the Board of Education provided contributions into an account for each eligible employee (thus the name Board TSA).  The Optional TSA program allows employees to open an account with an investment company and have pretax payroll deductions, called contributions, taken from their paycheck.

Of the approximately 14,000 participants presently within the Tax Sheltered Annuity plan, only those who have terminated their employment with the School District have access to their account balances, even though they are beyond the age of 59 ½.

The IRS Code was determined to be less restrictive, allowing access to such account balances beginning when active employees reach age 59 ½. The administration is asking the Board of Education to amended the TSA Plan be to allow access to such account balances once an employee attains 59 ½ years of age, without having to terminate their employment with the School District.

The administration is asking the Board of Education to approve the Fourth Amendment to the Tax Sheltered Annuity Plan, which will amend the plan to grant participants the right to make in-service withdrawals any time after they reach the age of 59 ½ years.