If you are a current or former participant in a 403(b) plan you
may set up a salary-deferral-only 403(b) account with a loan
feature.
A 403(b) retirement plan, also known as a Tax-Sheltered Account (TSA)
is designed exclusively for employees of non-profit institutions
such as public schools, colleges, nonprofit hospitals, and other
tax-exempt 501(c) organizations.
Only a
few companies offer a salary-deferral-only 403(b) account with
a loan feature. The Pioneer salary-deferral-only 403(b), or Pioneer
403(b), is the one that we are most familiar with and that is
featured here. |
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| You can
take a loan from your 403(b) even after you've left your job. How? |
Once you have left
your employer you can continue to have the flexibility of investment
choices and loan access to your retirement account. You can rollover
or transfer almost any qualified retirement assets to your Pioneer
403(b). It’s easy for you to borrow up to one-half of your Pioneer
403(b) account balance or up to $50,000, whichever is less. Here are some key aspects of
the Pioneer 403(b) loan program:
- You can borrow from your account up to the time you retire.
Loan can be used for any reason.
- There are no taxes or penalties on the borrowed amount as
long as you pay the loan back on time.
- As you repay your loan, the interest and principal are reinvested in your Pioneer 403(b)
account. Your interest rate is set at the prime rate existing
at time of your loan. Interest rate is fixed for the term of the
loan.
- Loan must be repaid within 5 years, or up to
10 years if the loan is used to acquire a principal residence.
Download the Pioneer 403(b) Loan brochure for more information. |
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| Can I consolidate my other retirement funds
into my Pioneer 403(b) account? |
| Yes. You may find it more convenient and cost effective to consolidate
your other retirement funds into one account. And, you'll be able
to borrow from your Pioneer 403(b) account balance should you ever
need to at anytime before you retire. |
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| Rollovers
to 403(b) |
YES |
NO |
| 401(k), 403(b), governmental 457(b) or
other qualified retirement plan from a previous employer |
 |
|
| IRA, Rollover IRA (pre-tax contributions
only) |
|
|
| Keogh, SEP-IRA |
|
|
| Money Purchase |
|
|
| Non Retirement Accounts |
|
|
| Profit Sharing Plan |
|
|
| ROTH IRA |
|
|
SIMPLE-IRA
(SIMPLE account must be more than 2 yrs old to avoid
a 25% distribution tax penalty) |
|
|
| Stocks |
|
|
|
| |
| Table shows a general summary of rollover possibilities. Check
with your current or employer or custodian to see if you will
incur charges for transferring your current retirement
funds. No after-tax contributions may be consolidated in your
403(b) account. |
|
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| Can I transfer funds to my Pioneer 403(b)
while I am still employed? |
Maybe. A little known rule called the "90-24 transfer" allows you to transfer money from your current 403(b) account to a new 403(b) account that you set up while still working for your employer, as long as such transfers are allowed by your employer's plan.
Under newly published final IRS 403(b) regulations, plans that currently permit Revenue Ruling 90-24 transfers can continue to allow those transfers only through September 24, 2007.
Rollover of a 403(b) from a previous employer is still allowed. |
| |
| Can I have a loan with my employer's 403(b)
and one with my Pioneer 403(b)? |
| Yes, but the total of your loans from all 403(b) programs in which you participate
cannot exceed $50,000. |
| |
| Can I continue to contribute into my Pioneer
403(b) account if I change jobs? |
| Yes, as long as your new employer is qualified to offer a 403(b)
plan. If so, ask your employer to send your salary contributions to your Pioneer
403(b) account. If your new employer is not tax-exempt you cannot
make additional contributions to your 403(b) account. However, you
may rollover or transfer eligible funds in any amount to your
Pioneer 403(b). |
| |
| How much of my salary can I contribute to my Pioneer
403(b) account? |
| Please see your tax professional for that answer. You may download
the 403(b) Maximum Contribution Worksheet or refer to our Retirement Calculators section for guidance. |
| |
| Do my investments grow tax-deferred? |
| Yes. In your Pioneer 403(b) you pay no taxes on investment earnings
until they are withdrawn, so your investments benefit from the power
of tax-deferred compounding. |
|
| What are the administrative fees for the
Pioneer 403(b)? |
| The Pioneer 403(b) plan is inexpensive to set up and maintain.
No set up fee
Annual administration fee: choice of $20 per year, or a one-time-only
fee of $100.
Loan fee: $50 per loan |
| |
| What are the investment fees? |
| Investment fees and applicable sales loads are explained in the
prospectus for the funds, and often vary from fund to fund.
Investments can be made in one or more of the 20 or so funds managed
by Pioneer. For general information on sales loads see Our Fees. Please
read the prospectus, included in the kit you'll receive from us, carefully before you invest or send in any money. |
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| How do I get a loan from my Pioneer 403(b) account? |
You may request a loan
from your Pioneer 403(b) account once your account has been funded
for more than 15 days. See the Pioneer 403(b) Loan brochure for more information. |
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| How do I get a free kit to set up my Pioneer
403(b)? |
Fill out the Request
for Application Form. We will send you by email all of the forms
and documents that you need to start your 403(b). Review and read
the material carefully. If you have any questions feel free to Contact
Us or call us at 703-370-1570, or Pioneer at 800-622-0176.
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