403(b)/457(b)/457 Plans

There are significant tax advantages for participants in a 403(b)/457(b), including pre-tax contributions to a 403(b)/457(b) plan and earnings on these amounts are not taxed until they are distributed from the plan. Additionally:

• reduced taxable income through pre-tax contributions.
• tax-deferred earnings on plan contributions.
• likelihood of paying less tax on assets as distributions usually occur during retirement, when an employee may be in a lower tax bracket.
• the ability to take loans from the 403(b)/457(b) accounts.

In 2025, the annual contribution limit is $23,500. An employee who is age 50 or older may make an additional catch-up contribution of $7,500, total $31,000.

In 2026, the annual contribution limit is $24,500. An employee who is age 50 or older may make an additional catch-up contribution of $8,000, total $32,500.

Quick Comparison

¹ Subject to the Internal Revenue Service (IRS) rules and regulations regarding qualified distributions.  A qualified distribution of the Roth 457(b) resulting in tax-free distribution earnings requires that the distribution is made after a 5-taxable-year period of Roth participation and is either:

• made on or after the date you attain age 59½ and separated from service
• made after your death, or
• attainable to your being disabled as defined by the IRS as separation from active service because the person cannot engage in any substantial gainful activity because of a physical or mental condition.  A physician determines that the disability has lasted or can be expected to last continuously for at least a year or can lead to death.

The 5-year account holding period, attainment of age 59½, and separation of service are the key factors that result in a tax-free distribution.  If the distribution circumstance does not meet all three requirements, the "earnings" portion of the distribution is subject to ordinary income taxation.  The "after tax" contributions are never taxed again.  The Roth 457(b) is still exempt from the 10% additional excise tax if withdrawn before 59½, but the earnings portion of your account would lose its "tax-free" status if all three criteria are not met.

² For purposes of the 457(b) plan, an unforeseeable emergency is defined by the IRS as a severe financial hardship of the participant or the participant's dependent resulting from an extraordinary or unforeseeable circumstance beyond the control of the participant or the participant's dependent.

SFUSD staff can make salary reduction decisions at SchoolsFirst’s PlanVUE website at pa.schoolsfirstfcu.org. You can view short video tutorials on how to navigate the PlanVUE website:

• How to log in and establish a username and password: https://youtu.be/-BAjuScx27U
• How to navigate the site to make changes to the contribution amount: https://youtu.be/L-ubFfOuVvc

You can also access SchoolsFirst’s website for hard copy forms for all transactions:

https://www.schoolsfirstfcu.org/products/investment-retirement/retirement-and-investment-forms

Support for Employees

If you have questions after Oct. 1 about the administration of your plan or would like to speak with a SchoolsFirst Retirement Plan Specialist, please call 800-462-8328, extension 4727. A specialist will be available to assist you.

If you would like to open an account or have questions please contact:

Financial Advisor, Carlos Almazan: Phone: 951-840-9339, Text: 951-875-6009 or calmazan@schoolsfirstfcu.org

403b and Roth 403b Flyer

Understanding Your 457b, Roth 457b Flyer 

Here are the steps to stop or change a deduction:

• SFUSD staff can make salary reduction decisions at SchoolsFirst’s PlanVUE website at pa.schoolsfirstfcu.org. The processing timeline it typically 1-2 pay periods.
• Once approved, SchoolsFirst will notify SFUSD and SFUSD will enter the deduction information into Frontline. The employee will see their contributions to their savings plan account reflected on their pay statement on a regular and recurring basis, until they alert SFUSD to stop deducting their contributions.
• The funds that are deducted are sent to SchoolsFirst to invest through the employee’s chosen provider.

You can view short video tutorials on how to navigate the PlanVUE website:

• How to log in and establish a username and password: https://youtu.be/-BAjuScx27U
• How to navigate the site to make changes to the contribution amount: https://youtu.be/L-ubFfOuVvc

You can also access SchoolsFirst’s website for hard copy forms for all transactions:

https://www.schoolsfirstfcu.org/products/investment-retirement/retirement-and-investment-forms

Support for Employees

If you have questions after Oct. 1 about the administration of your plan or would like to speak with a SchoolsFirst Retirement Plan Specialist, please call 800-462-8328, extension 4727. A specialist will be available to assist you.

If you would like to open an account or have questions please contact:

Financial Advisor, Carlos Almazan: Phone: 951-840-9339, Text: 951-875-6009 or calmazan@schoolsfirstfcu.org

To complete a rollover please contact our third party administrator, SchoolsFirst at 800-462-8328, extension 4727 as they sign the form on behalf of SFUSD. Your plan documents and authorization should provide the information SchoolsFirst will need for the rollover.