Take advantage today

All Anne Arundel County Public School employees, including temporary employees and substitute teachers, are eligible to begin contributing upon date of hire.

Starting early has its advantages

Employee contributions
As much as 100% of your annual includible compensation (i.e., the amount of taxable wages and benefit received from your employer), up to the maximum IRS contribution limit. You may change the amount you contribute to the plan as often as your employer allows.

2022 contribution limit

Your contribution limit for 2022 is $20,500.

Catch-up contributions
You might be eligible to contribute additional catch-up amounts if you meet the following condition. 

2022 catch - up contributions

An additional $6,500 if you are age 50 or older.

Stop/change contributions

You may change your contribution amount or discontinue contributing at any time and resume contributing again later, subject to your AACPS plan and any administrative requirements. In the meantime, your account will continue to grow on a tax-deferred basis. Please allow one month’s notice for processing.

You are always 100% vested in your own contributions.

Accessing your money before retirement

Your plans were established to encourage long-term savings. 

A 403(b) plan generally has less stringent withdrawal restrictions while you are employed; however, a 10% federal early withdrawal tax penalty may apply to withdrawals prior to age 59½.

The following are distribution events for your 403(b) plan:

  • Attaining age 59½

  • Retirement or severance from employment*

  • Your death or total disability

  • Hardship withdrawals

  • Minimum distribution required at reaching age 72 (age 70½ if born before July 1, 1949) or upon retirement, whichever is later

* Distributions where the employee retires or severs from employment at or after age 55 are not subject to the 10% federal early withdrawal tax penalty. 

Tax-free loans, available to 403(b) plan participants only, make it possible to access your account, subject to certain limitations, without permanently reducing your account balance. Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal early withdrawal tax penalty if you are under age 59½.

*You are only eligible to take a loan if you are an active AACPS employee.