Frequently Asked Questions
Who is eligible to contribute?
- All Olathe Public School employees are eligible to participate in a 403(b).
How much can I contribute?
- 403(b) - $22,500 per year.
- 457(b) - $22,500 per year.
- Make sure you don't exceed your individual IRS limit. If you do and the excess isn't returned by April 15 of the next year, you could be subject to double taxation.
What is the "Catch Up" provision?
- Employees age 50 or older are eligible to make additional contribution of $7,500 above the IRS maximum yearly allowance. Be sure to talk to your financial advisor to see if this is the right decision for you.
Can I participate in both a 403(b) and 457(b) accounts at the same time?
- A 403(b) and 457 account are considered separate programs. You can participate in both at the same time. Be sure to check with your financial advisor as to the IRS participation limits.
Who is the plan administrator that can sign my application?
- 403(b) application must be routed through OMNI, our third party administrator for all 403b accounts.
- 457(b) applications must be sent to Human Resources.
How is a 403(b) Different from a 401(k)?
- The 403(b) is a retirement plan available to certain employees of public schools, employees of certain tax-exempt organizations and certain ministers. The 401(k) is a retirement plan for private sector workers.
Once I start contributing, can I change my contribution?
- You can elect to increase, lower or even stop the contribution if you choose. These changes can be directed to payroll through a Salary Reduction Agreement Form.
Can I take a loan from the account?
- For certain reasons allowed by the IRS, you can request a loan or hardship withdraw from your account. Contact your financial advisor for more information on this process. Certain loans require repayment within a certain amount of time.
When can I access the money?
- Withdrawals prior to age 59 1/2 may incur an additional 10% federal income penalty tax. Minimum disbursements are required to start at age 72. Death and/or disability may change the withdrawal timeline.