Reliant's -43B Plan includes employer discretionary contributions for our Class 2 - Fixed term employees. Employer contributions are paid to Principal directly out of the MTD account. These contributions are not a match and do not require that the employee contribute funds from their paychecks in order to receive the employer contribution. Employer contribution amounts are determined by the employee's program leadership and are included in the employee's fundraising goal.  

Do I get to take the Employer Contribution with me if I leave employment with Reliant?
Yes, participants in the 403(b)(9) Plan are immediately 100% "vested," which means the employer contributions are fully transferable (into another retirement account with your new employer or an IRA), should you exit employment with Reliant.

How will Employer Contributions effect my paycheck and my support goal?
Employer contributions are charged directly to the MTD account that you are responsible for with Reliant. You will have to raise the extra money for the employer contribution, and it will increase your support goal. Employer contribution have no effect on an employee's paycheck except they affect the available balance in the MTD account that is used to determine how much funds are available for the employee's paycheck. 

How do I update my Employer Contributions in my support goal on Toolbox?

Please reach out to your program team for assistance in making a change to the Employer Contribution.

What is the advantage of electing an Employer Contributions vs. personal saving in an IRA?
The advantage of a 403(b)(9) plan versus personal investing or saving is the employer contribution does not get taxed (until you retire and withdraw it). So, the Employer Contribution enables you to save extra money (on top of any money you save through other methods) towards your retirement.

It’s like opting to receive a special bonus every month that goes directly into your retirement savings account and that the government doesn’t tax you on (until retirement).  

Plus, 403(b)(9) Plans can often negotiate lower fees for the investments offered in their plans vs. the employees buying the same investments personally in their IRAs.  403(b)(9) Plans have the buying power of a larger group, so they're able to negotiate lower fees for the investments because they're buying in "bulk." It's kind of like shopping at a "big box" store.