Tax Sheltered Investment Program (403b, Roth) FAQ

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Is there a tax sheltered Investment Plan?

Yes; Monies can be deducted from your paycheck on a pre-tax basis (403b) or a post-tax basis (Roth). The pre-tax option reduces the amount of income that is taxed resulting in a higher net pay. The funds become taxable to you upon distribution at retirement. For the Roth post tax option, taxes are withheld on earnings and the contributions at retirement at not taxable to you. (only the income earned on the contribution would be taxable)

Is there a matching contribution by the employer?

No; the plan is a voluntary, employee funded plan.

Is there a maximum amount that can be contributed per year?

Yes; the 2017 maximum is $18,000 per year. For taxpayers over 50 years, an additional $6,000 can be contributed for a total of $24,000.

Is there a penalty for early withdrawal?

Yes; there is a 10% penalty in addition to 100% of the amount received becoming taxable in the year withdrawn. There is no penalty if you have reached 59 1/2 years or in the event of death or permanent disability.

Can I rollover my funds when my employment ends?

Yes; you can transfer your funds to another plan or to an Individual IRA upon separation from employment.

Can I borrow monies from my account for qualified purchases?

No; the plan does not allow loans from the invested funds.

Where are the funds invested?

The Consortium has an Open Architecture Plan through Mass Mutual and has numerous funds to choose from. You can set up the fund with the help of one of our financial consultants. CAHC is not responsible for any investment decisions.

Who do I contact to set up an account?

One of our Financial Consultants; Tom Grant - 860-606-0816 tgrant@mwfinancial.com or Greg Balogh - 860-606-0816 gregory_balogh@mwfinancial.com.