1. Tax Smart Financial Strategies for Our Employees
Provided by:
Riverview School District
Presented by:
Kades-Margolis Corporation

2. Your 403(b) Tax-Sheltered Account Program
Provided by:
Riverview School District
This is a brief presentation that summarizes your school district’s 403(b) Plan.
Presented by:
Kades-Margolis Corporation

3. What is a 403(b)?
403(b)s are also known as TSAs, or tax-sheltered accounts
TSAs are voluntary, long-term retirement savings plans that allow school employees to set aside money on a tax-deferred basis for retirement
Permitted for ALL of our school employees under Section 403(b) of the Internal Revenue Code
Withdrawals with no IRS penalty if age 55 or older upon separation from service
In-Service withdrawals permitted at age 59 ½
403(b) is a section of the IRS Code that established Tax Sheltered Accounts for school employees to supplement their retirement income.
All school employees are eligible to participate in the district’s 403(b) TSA program, including substitute teachers, and part-time employees.
A 403(b) allows you to set aside money on a tax-deferred basis for retirement using a payroll deduction process through the business office. The funds withheld from your paycheck are then invested with a 403(b) provider that you choose from our list of approved companies.
You control how your funds are invested by consulting with a representative from the provider you select.
Saving for retirement with a TSA is convenient and easy to do!

4. Why take advantage of a 403(b) Program?
Reduce current income taxes
Provide tax-deferred growth
Supplements other retirement income
Personal Savings
Social Security
PSERS
Why should you participate in a 403(b) TSA program?
First: It reduces your current income taxes. It is the first tax shelter that nearly every tax professional recommends.
Second: it provides for tax-deferred growth. Instead of paying income taxes, you bank interest earnings, all of your contributions, and the earnings on those contributions, are tax-deferred until you take out the money. That will usually be after retirement when you will most likely be in a lower tax bracket.
Third: It supplements other retirement benefits, like your personal savings, Social Security and PSERS. Who knows if any of us will get all the Social Security we’re entitled to, given the budget shortfall of Social Security and Medicare. Especially with scientific and medical advances, that check may have to last you 30 years or more.
You need to supplement it with your TSA which should reflect any economic growth during your retirement years.

5. How does a 403(b) work? Income Tax $12,500 $11,850 -$650
$100/pay in Bank
$100/pay in TSA
2018 Taxable Income
(Married filing jointly)
$50,000
TSA: $100/pay x 26
-$2,600
Adjusted Gross Income
$47,400
Income Tax
$12,500
$11,850
-$650
Here’s an example of how it defers your taxes.
Let’s assume you’re married and your adjusted gross income is $50,000.
By putting just $100 a pay into your TSA your Federal tax bill will be reduced by $650.
And, any taxes on earnings are deferred until you withdraw your money.
You’ll have $2,600 (plus any earnings) put away for retirement, and will have paid $650 less to Uncle Sam.
Because of the tax advantage, putting $100/pay into a TSA will only reduce take home pay by about $75.00.
Plus: For low and moderate income employees, the IRS offers the Savers Credit: a tax credit for contributing to a 403(b) TSA. Talk to one of the representatives of your district’ s approved vendors if you think you might qualify.
Assumes 25% Tax Bracket
Plus: For low and moderate income employees, the IRS offers the Savers’ Credit – a tax credit for contributing to a 403(b)
Information provided should not be considered as tax advice from GWN Securities, Inc. or it’s representatives. Please consult with your tax professional.

6. How much can I elect to contribute to my 403(b)?
Employee Deferral Limits in 2018
2018
Normal Limit (or 100% of pay, if less)
$18,500
Aged 50+ “Catch up”
$ 6,000
Maximum Employee Contribution
$24,500
The maximum amounts you can contribute for 2018 is shown in this box. (That limit may increase next year.) Everyone can contribute up to $18,500 or 100% of salary. Beginning on January 1 of the year you turn 50, you may contribute an additional $6,000 each year.
When can I withdraw my funds?
 Generally, you may withdraw your contributions and earnings beginning at age 59 ½ without a penalty, however, if you separate service and are 55 years of age (or will turn 55 in the calendar year of separation from service), you may withdraw your funds without incurring an IRS penalty.
You should check with your investment advisor representative to see if you are subject to any contractual withdrawal fees from the investment program you’ve selected.
When can I get my money out of my TSA?
No IRS penalty if age 55 and separated from service
In-Service withdrawals permitted at age 59 ½

7. Your 403(b) Plan Permits:
Universal Availability (every employee can participate)
Exchanges (between approved vendors)
Transfers (from or to another school employer)
Loans (if offered by the vendor)
Hardship Distributions (if offered by the vendor)
Roth 403(b) Contributions
Your district’s 403(b) Plan contains the following optional items:
Universal Availability –as I mentioned before, every employee is eligible to take advantage of the district’s 403(b) plan
Exchanges – if you wish to move funds from one approved vendor to another approved vendor you may, and that’s called an exchange.
Transfers – if you have a 403(b) account with a previous school district, you may transfer that account to this district’s 403(b) plan, as long as you choose one of the approved vendors.
Loans – Loans from your TSA account are available (if the vendor you’ve selected offers loans)
Hardship Distributions – Hardship distributions from your TSA account are available (if the vendor you’ve selected offers hardship distributions)
Roth 403(b) – New in 2006, employee contributions to a Roth 403(b) may be made under our plan.

8. Roth 403(b)
Section of IRS Code that allows participants to make after-tax contributions, receive tax-deferred growth, and make after-tax withdrawals after retirement
Benefits:
Allows you to have tax-free assets after retirement
Could be useful for employees with more time to save
The Roth 403(b)
You may be familiar with the Roth IRA, which has been around for some time, however, there are Adjusted Gross Income Limits that prohibit some people from taking advantage of the Roth IRA.
Beginning in 2006, Congress permitted school employees to choose between investing in a traditional 403(b) and a Roth 403(b). Your district’s 403(b) Plan permits Roth 403(b) contributions.
The traditional 403(b) tax shelters current income; it defers taxes on the contributions and earnings until the funds are withdrawn. The Roth 403(b) uses after-tax dollars, you don’t get any immediate tax shelter, but if all the Roth and 403(b) rules are followed, the earnings grow tax-free; withdrawals of your contribution and earnings can be made tax free. (59 ½ and Account has been held for at least five years)
The total 403(b) maximum for 2018 is $18,500, plus $6,000 for the age 50+ catch-up. So an employee (under age 50) could put $10,000 into a Roth 403(b) and up to $8,500 in to a Traditional 403(b).
Also, there are no Adjusted Gross Income Limits to participate in a Roth 403(b).
If you’re interested in the Roth 403(b), contact a representative of one of the district’s approved vendors.

9. Saving for your future is one area we try to stress in every presentation. And one of the secrets to accumulating savings is to start now.
At first glance, this slide looks like a lot of big numbers.
Take a look. This chart compares two 25-year olds who both contribute $300 a month (or $3,600 per year) to a TSA and receive an 6% annual effective rate of return. Joy contributes for 15 years and then stops. Ed waits 10 years before getting started. Then Ed starts contributing at age 35 and then contributes every year until retiring at age 62.
But look at this! (click reveals first green oval and $76,969).
Even though Ed contributes $43,000 more money than Joy, his savings will never catch up with hers because his money has been earning interest for 27 years compared to Joy’s 37. This is due to the power of compounding your interest for long periods of time.
This example clearly illustrates that investing is most advantageous when you get started as soon as possible however both Ed and Joy would have each enjoyed $900 in annual federal tax savings - assuming they each had a 25% effective tax rate.
Now look at this! (click reveals red oval and $43,000). In the end, Joy contributes $43,000 less and ends up with $76,000 more savings than Ed.
Once in a while, someone asks us “how much can someone like Joy save if she contributes from age 25 all the way to age 62?” (Click reveals Emma example). Our friend Emma does just that. Look how much she has in her account - $485,655!
The message from this example is clear: The longer you wait to save, the more money you will need to save later to save the same amount.

10. Riverview School District List of Approved Investment Providers
AXA Equitable Life Insurance Company
Global Atlantic (prev. Commonwealth Annuity)
Kades-Margolis Corporation
Lincoln Investment Planning, LLC
Mass Mutual Life Insurance Company (existing clients only)
Plan Member Services
VALIC
VOYA Financial
There are several investment options available to you including fixed and guaranteed annuities, variable annuities, and mutual funds.
Here is a list of the district approved investment providers for your 403(b) TSA.
Visit under the Plan Sponsor Pages for a complete list of approved providers in your district.
This list of vendors have agreed to follow the terms of your district’s 403(b) plan, and therefore are the only vendors you can use for 403(b) contributions.
Complete contact information for the representatives of the above approved investment providers can be found at under the Plan Sponsors link.

11. Getting Started
Review your employer’s plan information at under the Plan Sponsors link
Contact one of the investment provider representatives listed to open your 403(b) account
If you wish to take advantage of the school district’s 403(b) Plan:
1) Contact one of the investment provider representatives listed in the Summary Plan Document to open a TSA account; your representative will assist you in completing the necessary application and Salary Reduction Agreement to begin your contributions.
2) Be sure to turn in your Salary Reduction Agreement into the district payroll office.
3) If you are already contributing to a 403(b), and are interested in Increasing your contributions, you can access the necessary Salary Reduction Agreement through your payroll office, or at If your district offers Percentage of Pay as a contribution option , you may want to consider this option to ensure that as your salary increases, your 403(b) contribution also increases automatically.

12. 403(b) Plan Third Party Administrator (TPA)
TSA Consulting Group 28 Ferry Road SE Fort Walton Beach, FL (888)
The district is using TSA Consulting Group, Inc. as the third party administrator because of their experience and reliability.
The change to TSA Consulting will result in improved processing time for your transaction requests. They employ a full service flexible technology platform that provides a secure Internet access by both employers and employees. You can get immediate answers your questions regarding all contributions and transaction processing requests, as well as access all necessary forms on their website under the Plan Sponsor Pages link.

13. Any Questions?
The information in this presentation is for informational purposes only and should not be construed or relied upon as tax advice or legal advice.  It was not intended to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing or recommending to another party any transaction or matter presented. If this presentation is used in the offer or sale of a variable annuity or mutual fund, it must be preceded or accompanied by the appropriate product prospectus. An investment in a mutual fund or variable annuity involves risk, including loss of principal, and is not a deposit or obligation of, or guaranteed by any bank. The investment return and principal value of an investment in a mutual fund or variable annuity will fluctuate so that you may have a gain or loss at redemption. Securities and Registered Investment Advisory Services Offered Through GWN Securities, Inc N. Jog Road Palm Beach Gardens, FL (561) Member FINRA & SIPC Kades-Margolis, a USRP company, is not affiliated with GWN Securities, Inc For more information and to carefully consider the securities offered, including investment objectives, risks, charges, expenses and fees, please request a prospectus from you GWN Registered Representative. Please read it carefully before you invest or send money.

14. Helping School Employees Cope With College Expenses

15. Tuition Rewards™ Points
Tuition Rewards™ Points are discounts to tuition at participating private colleges and universities across the country
Think “frequent flyer miles”, but for college tuition costs instead of airline tickets
Offered exclusively by Kades-Margolis to public school employees through their employers
Same program, offered under:
Upromise Rewards*
PA 529 Guaranteed Savings Plan (formerly TAP)*
*If you already participate in one of these programs, you are still eligible to enroll through Kades-Margolis to earn additional points
Over 400,000 Current Participants in the SAGE Tuition Rewards™ Program

16. Tuition Rewards™ Points
1 Tuition Reward™ Point = $1 towards tuition
For example – if a student has 10,000 Tuition Rewards™ Points, he or she is guaranteed to receive a minimum scholarship of $10,000 (spread equally over four years) at a SAGE member school.
Maximum points that can be used for any one student = First year’s tuition split over 4 years
Represents the minimum scholarship that an eligible student will receive if and when he or she attends a member school
Students may still qualify for other scholarships, awards, loans, grants, etc., dependent on individual college policy

17. How are Tuition Rewards™ Points Accumulated?
5% of the employee’s 403(b)/457(b)/PSERS account balance(s)* upon enrollment into the program, and each year thereafter OR
If no 403(b), 457(b), or account balances are less than $20,000; a minimum of 1,000 points upon enrollment into the program and each year thereafter
PROMOTIONAL – 1st time enrollment – Minimum 3,000 points
Subsequent years – Minimum 1,000 Points for re-enrollment
You must meet with a Kades-Margolis representative each year to sign up for your annual points
*Accounts need not be with KMC; employee’s may use an account balance with any 403(b) or 457(b) vendor
No requirement to have or to purchase a 403(b)/457(b)

18. Who can enroll?
All employees of the school can enroll as a sponsor during the enrollment period
Annual opportunity to enroll and to accumulate future points
Sponsors may enroll their children, grandchildren, nieces, nephews, other family members, and godchildren
May enroll children up to August 31st of the year 11th grade begins
Enroll an unlimited number of eligible children

19. How are points allocated?
Sponsors may allocate accumulated points among their named eligible students
Must assign points to children by August 31st of the year 12th grade begins
Sponsors may re-allocate accumulated points to other eligible students if the initially named student does not go on to college or picks a non-participating college

20. Participating Colleges
Over 380 Participating Private Colleges Nationwide
In PA: Albright, Arcadia, Cabrini, Duquesne, Lycoming, Rosemont, Widener and 46 other colleges and universities
Out of state: Creighton, DePaul, Ohio Wesleyan, Valparaiso, and hundreds of other colleges across the nation
Visit for a complete list of participating colleges and universities
More colleges and universities are being added all the time!

21. Why are colleges participating?
It’s a way to attract more students!
Because they have built up tuition points:
Parents may “encourage” their child to visit one or more of these colleges during their college visitation tours
Parents may “encourage” their child to enroll in one of these colleges
College enrollments are down and competition is fierce. These private colleges need to remain affordable to parents due to:
Competition from Community Colleges
Competition from less expensive state schools
These colleges will have a list of Tuition Reward™ Program participants to use for communications of their marketing material and recruiting packages

22. Enrollment Process
Kades-Margolis Representatives will enroll/re-enroll employees during annual open enrollment periods
No obligation to purchase a TSA or any other product to participate
Simply meet with the KMC representative to register as sponsor and designate a student
You will need to provide the following to enroll:
Your name, address, SSN, phone number, and address
Student’s name, address, address, date of birth, current grade, and relation to the child
Don’t forget to bring your 403(b)/457(b)/PSERS account statement to earn points equal to 5% of your account value!

23. Securities and Registered Investment Advisory Services
Any Questions?
Securities and Registered Investment Advisory Services
Offered Through
GWN Securities, Inc.
11440 Jog Road, Palm Beach Gardens, FL (561) Member FINRA & SIPC
If this presentation is used in the offer or sale of a variable annuity or mutual fund, it must be preceded or accompanied by the appropriate product prospectus. An investment in a mutual fund or variable annuity involves risk, including loss of principal, and is not a deposit or obligation of, or guaranteed by any bank. The investment return and principal value of an investment in a mutual fund or variable annuity will fluctuate so that you may have a gain or loss at redemption.

24. Kades-Margolis Corporation
PSEA endorsed marketer of 403(b)’s since 1974
We offer:
Tax-Sheltered Accounts to supplement your retirement savings
IRAs and Roth IRAs
PSERS Rollovers
College Funding
Asset Management
Mutual Funds
Life Insurance
Long-Term Care Insurance
And much more…
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Visit our website at for more information about how we can help you plan and invest for your future

25. Section 125 Plan By Utilizing Pre-Tax Dollars, You Save on Taxes!!!
Exciting opportunity to:
Save on taxes
Increase your spendable income
Part of the IRS Code:
Allows you to pay for certain expenses on a pre-tax basis
Components:
Medical FSA
Dependent Care
Pre-tax premiums for certain insurance offerings
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By Utilizing Pre-Tax Dollars, You Save on Taxes!!!

26. Section 125 Plan Covers Dependent Care for: Qualifying Expenses:
Your children who are under age 13
A dependent who is physically or mentally incapable of caring for him or herself
An elderly parent who is handicapped or ill
Qualifying Expenses:
Daycare
Summer Day Camp
Overnight Camp is not included
You must be the custodial parent
Daycare expenses must be for you (& your spouse) while actively working or looking for work
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27. Section 125 Plan
Covers Unreimbursed Medical Expenses, not covered by health insurance, such as:
Medical, dental, and vision plan deductibles and co-pays
Eye exams, contact lenses, and eyeglasses
Hearing care expenses
Prescription drugs
Orthodontia
Prescribed smoking cessation and weight loss programs
Over-the-counter items that are considered medically necessary*
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*Prescription required or OTC drug and medicine reimbursement

28. Changes is OTC Eligibility
(Effective 01/01/2011)
Under the Patient Protection & Affordable Care Act:
Medicines and biologicals will continue to be eligible for reimbursement only if the request is accompanied by a doctor’s prescription
Examples: cough medicines, pain relievers, acid controllers
Insulin and other non-medicinal over-the-counter items, such as band aids, will continue to be eligible without a prescription
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29. Medical FSA Savings
EXAMPLE:
Read slide to explain differential

30. Considerations Annual Election “Use it or lose it”
Can only be changed during the plan year with a life changing event
Marriage, divorce, birth, death, adoption
“Use it or lose it”
Riverview School District allows for a $500 medical carryover
Estimate your expenses conservatively
Check your account balance on-line
Limits
Dependent Care:
$5,000 Maximum – Head of Household, Married Filing Jointly
$2,500 Maximum – Each if Married Filing Separately
Medical FSA:
$2,650
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REMEMBER: Use it or Lose it…
Estimate Conservatively!

31. Section 125 Plan Administration offered through CBIZ
On-line Account Access
Review your account information
File claims
Debit Card used to pay for eligible expenses (RETAIN RECEIPTS)
Access your account and reimbursement forms at:
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32. One on One Benefit Election
A Sign-Up Sheet will be available at your school office Sign-up for your enrollment session at a time that is convenient for you. Walk-ins always welcome!!
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33. Any Questions?
Securities and Registered Investment Advisory Services Offered Through GWN Securities, Inc N. Jog Road, Palm Beach Gardens, FL 33418, , Member FINRA & SIPC.
Kades-Margolis Corporation, a USRP company, is not affiliated with GWN Securities Inc.
If this presentation is used in the offer or sale of a variable annuity or mutual fund, it must be preceded or accompanied by the appropriate product prospectus. An investment in a mutual fund or variable annuity involves risk, including loss of principal, and is not a deposit or obligation of, or guaranteed by any bank. The investment return and principal value of an investment in a mutual fund or variable annuity will fluctuate so that you may have a gain or loss at redemption.
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