The Maryland Teachers and State Employees Supplemental Retirement Plan (MSRP) 403(b) Tax-Deferred Annuity Plan is similar to a traditional 401(k) Plan, and is available to employees of Maryland educational institutions.
A 403(b) plan allows participants to make regular tax-deferred contributions each pay period, which are then invested and potentially grow usually until retirement. The money is not taxed until it is withdrawn – usually in retirement, when you may be in a lower tax bracket.
Remember, investing involves market risk, including the possible loss of the money you’ve saved. As you get started in the plan, we’ll help you understand market risk and strategies that may help you deal with it.
Additional 403(b) features
In addition to tax-deferred investing, the 403(b) plan also offers these features, and more:
- Contributions to more than one plan at a time – you may contribute to a 403(b) while also contributing to a 401(k) and/or 457(b), as long as you don’t exceed the current IRS contribution limits. See the plan comparison chart (PDF) for details.
- Hardship withdrawals and loans – you may take a hardship withdrawal or loans from your plan as long as certain qualifications are met.
- Rollovers – you may roll money into your MSRP 403(b) plan from other qualified retirement plans, as long as certain qualifications are met.
- Catch-up contributions – you can take advantage of the age 50 or older catch-up contribution option to invest more in your plan.
For a complete look at all of the MSRP 403(b) plan features, benefits and restrictions take a look at the plan comparison chart (PDF).
Qualified retirement plans, deferred compensation plans and individual retirement accounts are all different, including fees and when you can access funds. Assets rolled over from your account(s) may be subject to surrender charges, other fees and/or a 10% tax penalty if withdrawn before age 59 ½. Neither Nationwide nor any of its representatives give legal or tax advice. Please contact your legal or tax advisor for such advice.
Get the help you need
Talk to one of our Team MSRP Retirement Specialists if you have questions about plan options.