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403(b) plan

Welcome to your 403(b) retirement plan. Click below to view the features and highlights of your employer’s retirement plans.

The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.

View print version of the plan highlights.

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.

Contribution limit

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

Catch-up contributions

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.

Vesting
You are always 100% vested in your own contributions.

Accessing your money before retirement

Withdrawals
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. 
 

Loans
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.

An array of investment choices

You decide how to invest all contributions among the mutual funds offered under the Anne Arundel County Public Schools Supplemental Retirement Programs. 

The mutual funds available in your 403(b) retirement plan will provide you with the flexibility you need to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences. 

View the entire list of funds  -- and their historical performance -- available to Anne Arundel Public Schools 403(b) plan participants.

Remember, these plans represent a long-term investment. Investment values will fluctuate, and there is no assurance that the objective of any fund will be achieved. Mutual fund shares are redeemable at the then-current net asset value, which may be more or less than their original cost. 

Administrative fee
The gross annual administrative fee assessed on mutual fund assets in the plan is $94. This may be offset, in whole or in part, by reimbursement received from mutual fund companies. Additionally, mutual fund annual operating expenses apply based on the funds chosen. Mutual fund expenses and fund reimbursements are described in the prospectus.

To view or print a prospectus, access, “Prospectuses and Other Important Materials”. The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1-800-428-2542.