What is a 403(b) Plan?

A 403(b) plan is a voluntary retirement plan offered by public schools and other tax exempt organization to their employees to help supplement employee retirement savings. 403(b) plans allow employees to set money aside in a special account and invest it for their retirement.

Contributions are made under a Salary Reduction Agreement (SRA) with your employer. This agreement allows your employer to withhold money from your paycheck to be contributed directly into a 403(b) account for your benefit. Usually, you do not pay income tax on these contributions until you withdraw them from the account.

To complete a Salary Reduction Agreement, click here

Do I need to invest with OMNI?

OMNI is a third party administrator (TPA) of 403(b)/457(b) plans. We work with your employer to help ensure compliance with IRS regulations governing the operation of 403(b)/457(b) plans. OMNI also helps your employer remit 403(b)/457(b) contributions to participating investment providers. OMNI is NOT an investment company/investment provider- we do not offer and cannot recommend any specific investment vehicle.

How do I select an investment provider from the approved providers in my employer’s plan?

Each investment provider offers difference investment products, each with different features. In order to select the right investment provider for your retirement needs, it is recommended that you contact each provider in the plan to determine the best fit for you.

Who is eligible to contribute to a 403(b) plan?

All full time employees are eligible by default. Part time employees may or may not be eligible, depending on the specifics of your employer’s plan. Contact your employer for specific information regarding your eligibility.

How do I contribute?

Your first step will be to contact a participating 403(b)/457(b) investment provider to establish your investment account. A list of participating investment providers for your employer is available on your organization's Plan Detail Page. After working with your investment provider to establish your account and select investment vehicles, you will then need to complete an OMNI Salary Reduction Agreement (SRA) to initiate your deductions.

Can I change my deduction amount and/or investment provider?

Yes. Most employers place no limits on the number of changes you can make. Simply complete an SRA form and return it to OMNI to initiate a deduction change. To change investment providers within your plan, simply complete OMNI’s Contract Exchange form, and open an account with the new investment provider.

Who decides which investment providers appear on my employer’s list?

Your employer is responsible for choosing which Investment Providers appear on their list. Any investment provider which has completed an IRS mandated Information Sharing Agreement (ISA) could potentially be included on an employer’s vendor list.

I would like to use______ fund company for my 403(b) investment provider. How do I get them on my employer’s list?

Only your employer can choose to add/remove vendors from their list of participating providers.

How much can I contribute to my 403(b) plan?

Contribution limits are dependent on a number of factors. The IRS base limit in 2024 is $23,000. Employees over the age of 50 are automatically eligible to increase this amount to $30,500. Individuals with more than 15 years of consecutive service with their current employer MAY be eligible to contribute up to an additional $3,000 beyond their age based maximum. Please contact OMNI's Customer Care Team for assistance determining your eligibility for the service based catch-up.