Annual Eligibility Notice for 403(b)/457 Retirement Plans

Heartland AEA offers employees the opportunity to voluntarily save for retirement by participating in the Iowa Department of Administrative Services’ Retirement Investors’ Club (RIC) 403(b) and/or 457 plans. You are eligible to participate in these plans whether or not you are actively contributing to them. 

Some highlights of the RIC plans are: 

• The minimum contribution is $12.50 per pay period. 
• You have the option of pre-tax contributions (before state and federal income taxes are computed) and/or post-tax Roth contributions. You should work with your financial advisor to determine what is best for your retirement planning. If you want to model the effect of the tax savings from a pre-tax investment, go to the Employee Online tab on your Employee Dashboard and click on the “What If” calculator and enter the amount of your pre-tax contribution. This will show you how making the contribution on a pre-tax basis will affect your paycheck. The post-tax Roth investment is designed to offer tax savings at the time of withdrawal and not at the time of investment. 
• The Agency does not offer matching funds, but it is still very beneficial for you to start saving for retirement, even if you are only able to start with a small amount. 
• For 2019, the maximum amount you may contribute per year is 100% of your compensation up to $19,000. Also, if you are 50 or older, you may contribute an additional $6,000. In some cases, you may also be able to make additional catch-up contributions. A calculation is required to determine if you’re eligible for this special provision. 

There are three basic steps to start participating in the RIC plans: 

• Create an account with one of the plan investment providers. 
• Make your investment election (how you want your money invested). 
• Complete Heartland AEA’s Election Form to start your payroll deduction (forms can be found under the 403(b)/457 section of the Employee Online tab of your Dashboard). 

To learn more about the 403(b) plan, visit this Retirement Investors’ Club webpage, and to learn more about the 457 plan, visit this Retirement Investors’ Club webpage. Use the left-hand navigation to find more information about these plans. This Notice is not intended as tax or legal advice. Employees are encouraged to contact their financial advisor or tax professional with any tax or legal questions. 

If you have any questions about participating in these retirement plans, contact Steve Jordan, Senior Payroll Specialist, at ext. 14908.