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SmartChoice 403(b)™ is a retirement plan consisting of a wide selection of low-cost investments from
leading mutual fund companies. The advantage of SmartChoice is that you do not pay upfront commissions or
back-end surrender charges. In addition, there are no required holding periods and investments can be freely
changed between mutual funds within SmartChoice without cost.
Frequently Asked Questions
What Is A 403(b) Retirement Plan?
Very simply, it is a voluntary way to have some of your pay invested on a pre-tax basis for your retirement.
The amount is totally up to you and can be increased or decreased at any time. You can even stop it all together
at any time (you are never locked in). The term 403(b) comes from section 403(b) of the IRS tax code which covers
these types of deferred savings.
What If I Change Jobs?
The money you contribute is yours at all times. If you change jobs you may still leave your investments with
SmartChoice so that it may grow until you need it in retirement or, if your new employer’s plan accepts transfers
you may choose to move it. Also, since the investments in SmartChoice do not have any upfront commissions or back-end
surrender charges, your entire investment can be transferred without penalty.
How Much Do I Have To Contribute?
That is entirely up to you. You may contribute as little or as much as you like up to the IRS annual limit
(some additional catch-up provisions may allow you to defer even more). Some people deduct as little as
$25 per paycheck while others defer much more. No matter what the amount, doing something, no matter how small,
is the most important step to supplementing your retirement income.
Why is My School Involved In My Personal Retirement Plan?
The Internal Revenue Service (IRS) now requires them to be involved. Previously, a school’s only involvement was to
deduct the amount you requested from your paycheck and forward it to the investment provider of your choosing. Last year
the IRS issued new regulations giving schools until Jan. 1, 2009 to develop a plan document and assume all responsibilities
for 403(b) retirement savings.
What If I Don’t Have A 403(b) Retirement Plan?
Signing up is simple! Just fill out the 1-page enrollment form and beneficiary form and you will have just taken
a big step toward supplementing your retirement.
Is My TSA (Tax-Sheltered Annuity) Affected?
Yes. Tax-sheltered annuities are still considered 403(b) retirement plans.
What If I Don’t Have A Trusted Advisor?
You are not alone. Most individuals with these types of retirement accounts do not have trusted advisors since many
agents have retired or changed careers over the years or just plain dropped out of sight. One of the benefits of
SmartChoice is that the plan includes unbiased investment advice from the Confidential Planning representatives assigned
to your school and who are registered with the Securities and Exchange Commission (SEC).
Can I Move My Existing 403(b) / TSA Retirement Plan Into SmartChoice?
Yes, that decision is entirely up to you. If you are interested, the representatives of Confidential Planning will
work closely with you to determine if consolidating your retirement plan into SmartChoice makes sense.
That’s because most of the previous investments offered by other companies charged upfront sales commissions or back-end
surrender charges lasting up to 12 years. Only a careful examination of your current investments can determine what is
right for you.
What If I Plan To Retire In The Near Future?
No problem. Since the investments in SmartChoice do not have upfront commissions or back-end surrender charges, your
entire investment is available to you when you retire.
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