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The OMNI Group Answers Your Questions
If you are an employee of an organization that has appointed The OMNI Group as third party administrator, please refer to the frequently asked questions below. If a question/answer does not provide enough information or if you have a question not listed below, please contact us.
Employee FAQ Information:
What is the difference between a 403(b), TSA, and TDA?
- There is no difference between these terms. They are different names for the same program. The 403(b) is the Internal Revenue Service's (IRS) code for the program. TSA and TDA stand for Tax Sheltered Annuity and Tax Deferred Annuity, respectively.
I want to keep my current investment company and agent. Do I have to roll my funds over to The OMNI Group?
- No. The OMNI Group does not sell any products. We remit funds for employers and ensure all IRS rules and regulations are followed. You will still be with your current investment provider and agent.
- When selecting a service provider, employees should refer to the participating service provider list under their district's name.
I was a teacher for 15 years at another school district. Can I use catch-up in my new school district?
- No. You do not qualify for the Fifteen Year Cap Expansion Option. You must work 15 years for your current employer before you qualify for this provision.
I am over 50. How long can I do catch-up?
- There is no limit to how long you can use this provision. In 2008 the amount available is $5,000.
What is this going to cost me?
- In most cases The OMNI Group is paid by your employer. You get the benefits of the compliance program without any of the costs.
- read the IRS announcement.
What if The OMNI Group finds out that I over-contributed? Will you notify the IRS?
- The OMNI Group works for you and your employer, not the IRS. As part of the compliance process, The OMNI Group will assist you in correcting any possible over-contributions.
I'm not really into the finance stuff. Can The OMNI Group assist me in picking out the right company to work with?
- The OMNI Group is not able to help you select the "right company" to work with. We feel strongly that selling product or giving financial advice is a potential conflict of interest with our compliance and remitting services.
How often may I change my salary reduction agreement?
- In most cases, there is no limitation to how often employees may change their deduction. Your employer will dictate any restrictions that may be in place.
How do I go about making a change for my 403(b) plan?
- All changes must be done using an IRS-approved salary reduction agreement (SRA). This SRA form allows you to start, increase, lower, or stop deduction, as well as change your service provider. To view the list of service providers who participate under your employer's plan, select your organization from the client page.
To which company(ies) may I have my deductions sent?
- Your employer has selected the service providers who particpate under your plan. To view your plan's list of participating service providers, please select your organization from the client page.
Are loans and/or hardships available through my 403(b)?
- That depends on your service provider and your plan. A simple phone call to OMNI can answer this question for you.
Who can participate in a 403(b) plan?
- All full-time employees may elect to make salary reduction contributions to a tax sheltered annuity (ISA). Part-time employees may or may not be eligible, depending on your employer's plan.
How are service providers added to the list of participationg service providers?
- Your employer selects the service providers who are available under your 403b plan. OMNI acts as a gatekeeper for the list and will obtain the necessary information sharing agreement (ISA) from the service providers.
Can an employer make a contribution on behalf of a retiree?
- Yes, this is called a Non-Elective 403(b) Contribution. Due to the depth of this subject please contact the Compliance Department at OMNI.
What are the limits for my 403(b) Plan for 2009 and 2010?
- The following are the dollar limits for the year 2009 and 2010, as per the Economic Growth and Tax Relief Reconciliation Act of 2001:
- The elective deferral limit for an individual’s 403(b) contribution is the lesser of 100% of salary or $16,500.
- Individual’s age 50 or older will be permitted to make an “additional” contribution above and beyond the statutory limit. The elective deferral limit for these individuals 403(b) contribution is the lesser of 100% of salary or $22,000.
- The $3,000 per year Catch-up Provision for employees remains the same when meeting these conditions:
- 15 or more years of service within the current school district
- The employee has NOT averaged over $5,000 per year of elective deferrals
- The lifetime cumulative catch-up allowed remains $15,000
- LIMITS Chart
- click here for a downloadable pdf document.
- Contact us if there are any questions about the 2009 and 2010 limits.
The OMNI Group—listens, leads, delivers. |
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