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What are the advantages of participating in the North Texas School District Consortium 457(b) FICA Alternative Plan?

April 26, 2017advantages consortium district FICA north School Texas

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What are the advantages of participating in the North Texas School District Consortium 457(b) FICA Alternative Plan?

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The contribution to the North Texas School District Consortium 457(b) FICA Alternative Plan will be deducted from your paycheck on a pre-tax basis, so you are not taxed on the gross amount. Funds remain tax-sheltered until they are withdrawn. Unlike Social Security withholding, if your employment with your District ends, you may withdraw funds subject to the Internal Revenue Code distribution guidelines under a 457(b) Deferred Compensation Plan.