School Administrators

The new IRS regulations regarding 403(b) TSA plans have changed the landscape of the Tax Sheltered Annuity marketplace.  In addition, the State of Iowa has brought major changes to the 403(b) plans of public school employees and employers.  Although several schools in Iowa administer their own 403(b) plans and offer a wide variety of investment products for their employees, the majority of Iowa school districts now offer the State of Iowa Retirement Investment Club as their 403(b) plan.  The State of Iowa RIC offers investment products from five investment companies and does not allow employees to choose their own investments outside of these approved options.  There are severe restrictions on the transfer of existing TSA investment dollars for employees of schools who are using the State of Iowa RIC Plan.  Allen Knox Associates does offer an approved State of Iowa RIC investment product and is actively working with employees in RIC schools.  We are also working with schools that have opted for a 403(b) plan that gives their employees more investment selections, retains the option of staying with investments they already owned, and does not charge the school district any fees or expenses for administration of the plan.  If your school is currently participating in the State of Iowa RIC plan, you may want to look at the plan that allows your employees greater freedom of choice.