403(b) Plan

March 2018


MDS Community Action Agency 403(b) Plan



This notice provides important information regarding the 403(b) plan in which you are eligible to participate.


You may want to take this opportunity to either (1) begin making pre-tax 403(b) elective deferral contributions or (2) review your current elections and decide if you want to make changes.  Before making any initial elections or changes, you should be sure to consult the written plan and any other materials provided to you that explain the terms of the plan.


When can I enroll?


You are eligible to enroll immediately upon your date of hire.


You may choose your initial elective deferral rate by completing the appropriate application and any other necessary forms including a Salary Reduction Agreement at initial enrollment


This contribution will continue unless it is modified or revoked in the future.  Return all completed forms to your plan administrator (Shanna Hammond)


Can I change or stop my elective deferral contributions?


You may change your elective deferral contributions quarterly during the plan year.  You are permitted to revoke your election at any time during the plan year.  Please contact your plan administrator for further instructions.


When are my elective deferral contributions effective?


After completing the enrollment requirements, your elective deferral contributions will begin on the next pay period or as soon as administratively possible.


What is the maximum amount that I can contribute?


The Internal Revenue Code limits the annual contributions you can make to a 403(b) plan and the limits are adjusted each year.  The 2018 limits are as follows:


  • Elective deferral limit                                                           $18,500.00
  • Age 50 catch-up                                                                   $6,000.00
  • 15 years of service catch-up                                              $3,000.00


*The 15 years of service catch-up contribution applies before the age 50 catch-up contribution and is based on a formula that takes into account all past contributions to the plan and the employee’s total years of service to the employer.  The maximum allowable for the 15 years of service catch-up is $3,000 per year up to a $15,000 lifetime benefit, but an employee’s actual catch-up may be lower than this maximum.




Will my employer make additional contributions?


In addition to your pre-tax 403(b) elective deferral contributions, the plan may allow for additional employer contributions.  Please see your written plan for additional contributions that may be available to you under the plan.


Whom do I contact for additional information?


To learn more about 403(b) plans, visit http://www.irs.gov  and search for Publication 571.  If you have any questions about how the plan works or your rights and obligations under the plan please contact your plan administrator at:


                                          Shanna Hammond

                                          507 First Avenue North

                                          Escanaba, MI  49829

                                          (906) 786-7080, Ext. 114

                                                    Email Shanna