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LIFESPAN RETIREMENT PROGRAM 403(b)/401(k) SALARY REDUCTION AGREEMENT and SUPPLEMENTAL TAXSHELTERED PROGRAMS Section 1. Personal Information Print Name First Middle Last Employee ID Required (as shown.

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A salary reduction contribution plan allows employees to reduce their taxable income by investing for retirement. So an employee's salary isn't really reduced; rather the employer deducts a percentage of their salary and deposits the funds in a retirement savings plan so the money can grow tax deferred.

How do 457(b) plans work? Employers or employees through salary reductions contribute up to the IRC 402(g) limit- $22,500 in 2023 ($20,500 in 2022; $19,500 in 2021 and in 2020; $19,000 in 2019) on behalf of participants under the plan.

Plans eligible under 457(b) allow employees of sponsoring organizations to defer income taxation on retirement savings into future years. Ineligible plans may trigger different tax treatment under IRC 457(f).

There are certainly tax benefits associated with participating in a 457. This includes being able to contribute pre-tax money to decrease your overall tax burden. The gains also grow tax-free. Your only taxation occurs when you take it out.

What is a Salary Reduction Agreement? A salary reduction agreement is a written legal agreement between a company and its employee outlining the terms of transferring percentages of the employee's salary to a 401(k), 403(b), or IRA retirement plan.

Cons of 457(b) plans: Fewer investing options than 401(k)s (Not as common today) Only available to certain employees employed by state or local governments or qualifying nonprofits. Employer contributions count toward the annual limit. Non-governmental 457(b) plans are riskier.

A 403(b) plan may allow: Elective deferrals - employee contributions made under a salary reduction agreement. The agreement allows an employer to withhold money from an employee's salary and deposit it into a 403(b) account.

Instructions The Salary Reduction Agreement (SRA) is to be used to establish, change, or cancel salary reductions withheld from your paycheck and contributed to the 403(b) or 457(b) plan on your behalf. The SRA is also used to change the investment providers that receive your contributions.

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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232