HawaiiDOE403b

1. What are the tax advantages of participating in the TSA Program?
Your gross salary is reduced by the amount of the pre-tax 403(b) contribution thus lowering your current tax responsibilities, and delaying them until retirement or such time that you decide to withdraw the contribution.

2. What are the tax disadvantages of participating in the TSA Program?
403(b) contributions distributed to you may be subject to IRS penalties if withdrawn prior to age 59 ½. Additional IRS penalties may apply if you fail to begin distributions at your required beginning date.

3. How do I enroll in the TSA Program?
Visit the New Enrollment page of this website for detailed instructions on enrolling into the TSA Program.

4. How many changes can I make in a calendar year?
There is no limit to the number of changes that you may make to your Program participation during a calendar year.

5. How do I make a change in my TSA Program participation?
Visit the Enrollment Changes page of this website for detailed instructions on enrolling into the TSA Program.

6. Can I have my 403(b) contributions going to more than one Investment Provider?
Yes, you may have contributions directed to more than one Investment Provider.

7. What happens to my 403(b) investment if I die?
At the time you establish your account with your Investment Provider, you should be required to name a Beneficiary that will receive the benefits should you die. Your Investment Provider maintains your Beneficiary designation.

8. If I find that I don’t like my Investment Provider agent or representative, what do I do?
Step 1. Interview several Investment Provider agents to determine who is most suitable to your needs.
Step 2. Select a new Investment Provider and contact it or its agent to complete the paperwork necessary to establish your new account.

Step 3. Complete and submit a new Salary Reduction Agreement (found on the Forms page) providing instructions to cancel deferrals to your old Investment Provider and direct them to your new Investment Provider.

9. How do I obtain a 403(b) plan loan?
The Tax Equity and Fiscal Responsibility Act (TEFRA) allows Participants in 403(b) plans to borrow funds from their accounts without the loan becoming a taxable distribution if permitted by the tax-sheltered annuity contract. To get more information and/or arrange for a loan, contact your agent or Investment Provider who will provide the necessary forms and provide instructions. Investment Providers are not required to make 403(b) loans available.

10. What are the investment alternatives in the 403(b) program?
Many different Insurance Carriers and Annuity Investment Providers make retirement savings vehicles available to you through the DOE TSA . You may invest your 403(b) contributions in two types of retirement savings vehicles through Insurance Carriers and Annuity Investment Providers. They are:
A. Fixed Annuities
B. Variable Annuities
Please visit our Terms page for information about the characteristics of fixed and variable annuities. The Investment Options page identifies Insurance Carriers and Annuity Investment Providers that are eligible to receive contributions.

11. What are my choices for Investment Providers or Insurance Carriers?
The Investment Options page identifies Insurance Carriers and Annuity Investment Providers that are eligible to receive contributions.

12. How do I determine what 403(b) investment alternative is best for me?
Step 1. A qualified financial planner or Investment Provider’s agent should be able to assist you in picking appropriate investment alternatives. The advisor will generally assist you in determining your risk tolerance, time horizon, and investment objectives.
Step 2. The advisor will then assist you in formulating a suitable investment strategy and make recommendations regarding investment alternatives.

13. Who do I contact if a contribution is missing on my 403(b) account statement?
First contact your Investment Provider and inquire about the missing contribution. If they cannot provide any assistance, please contact the Employee Benefits Unit or the Program's third-party administrator and they will assist in resolving the problem with the DOE or Investment Provider.

14. What is the role of the Third Party Administrator (TPA)?
The Third Party Administrator, National Benefit Services, LLC, performs the role of administrator bookkeeper, compliance advisor, and common remitter for the Program.

15. When must I start receiving distributions from my 403(b) program?
You are required to begin receiving distributions from your TSA by April 15 of the year following the year in which you attain the age of 70 ½. Consult with your agent or Investment Provider to establish an appropriate distribution schedule.

16. When may I withdraw the money I contribute to a TSA?

A. Generally, you may not withdraw your money until you retire. However, other events may enable you to withdraw or rollover to your money to a different retirement savings vehicle (depending on the terms of your TSA contract) including:

Termination of employment with the DOE

Retirement

Attainment of age 59 1/2

Death

Disability

Hardship

Consult with your agent or investment provider to ensure you understand all possible tax consequences or penalties that may apply to withdrawing money. Not all TSA contracts will permit access upon disability or hardship. Some TSA contracts may permit you to access to your money by means of a loan. Contact your agent or investment provider for additional information.

17. May I exchange TSA money between investment providers?

A. While employed, your investment provider may permit you to transfer or "exchange" your 403(b) money to a different provider. Consult your agent or provider for additional information and be sure you understand any penalties that may apply.

18. How much money may I defer into a TSA each year?

A. In 2007, the base deferral limit is $15,500. You may be able to contribute more if you qualify for one of several catch-up’s (see below). If you qualify for the full amount of both catch-up's, you may be able to contribute up to $23,500 in 2007. The Maximum Allowable Contribution Worksheet (MAC) will help you determine your personal limit. The MAC can be found on the Forms page.

19. May I make an additional 403(b) “catch-up” contributions?

A. Completing the Maximum Allowable Contribution Worksheet (MAC) will enable you to determine if you are eligible for the "catch-up" provisions authorized by the IRS (the MAC can be found on the Forms page). You must complete and submit a Maximum Allowable Contribution Worksheet (MAC) for any year in which wish to utilize a "catch-up" provisions.

20. What are the "catch-ups"?

A. If you will have attained age 50 by 12/31/2007, you will be able to contribute $5,000 more to a TSA than the 2007 base limitation of $15,500. Also, if you have completed at least 15 years of service with the DOE and your lifetime 403(b) contributions have averaged less than $5,000 per year, you may be eligible to contribute an additional $3,000 in 2007. You must complete and submit a Maximum Allowable Contribution Worksheet (MAC) for any year in which wish to utilize a "catch-up" provisions (the MAC can be found on the Forms page).

21. How do the IRS' new 403(b) regulations affect me?

On July 23, 2007 the Internal Revenue Service (IRS) issued final comprehensive regulations governing 403(b) plans for the first time in 43 years. The general effective date of the regulations is January 1, 2009—although the effective date of some portions of the regulations is sooner. Please visit the New 403(b) Regulations page for additional details.

22. What are "Exchange Eligible" investment providers?

You may only transfer or "exchange" plan 403(b) assets to an investment provider that has established an information sharing agreement with the DOE or NBS. Investment providers that have established an information sharing agreement are classified "Exchange Eligible". A current list of Exchange Eligible providers can be found on the Investment Options page. Exchanges to providers that are not Exchange Eligible may result in tax consequences.

23. What authorization is required for me to perform a distribution, rollover, loan, hardship or exchange?

In the past, transactions such as distributions, rollovers, hardship withdrawals, loans, and transfers (now known as "exchanges") were generally accomplished through your investment provider without any DOE involvement. However, the IRS' new 403(b) regulations now require the DOE and your investment provider to share certain information and to coordinate when performing these transactions. A transaction authorization process will be utilized in order to facilitate necessary coordination and information sharing. If you wish to perform a distribution, rollover, hardship withdrawal, loans, or exchange; your investment provider must receive authorization from the DOE's third party administrator, National Benefit Services (NBS). Authorization is obtained through submission of an Authorization Form (available on the Forms page). Please note that in addition to the Authorization Form, your investment provider will likely still require submission of its own paperwork. Contact your investment provider for additional information.