| School Board of Alachua County |
| Bylaws & Policies |
6520.01 - TAX-SHELTER ANNUITIES
The Board may enter into a salary reduction agreement with an employee, to reduce the employee's salary in an amount specified in the agreement.
Tax-shelter annuity programs shall be operated in conformity with Sections 403(b) or 457, as amended, of the Internal Revenue Code. Employees cannot contribute to a Section 403(b) plan or a Section 457 plan simultaneously. Participation in more than one (1) Section 403(b) plan is permitted.
Any terminal pay for accrued leave which is deferred and deposited into a tax-shelter may only include leave accrued during the twelve (12) months prior to termination.
Sponsors
A company which sponsors a tax-shelter annuity program and wishes to enroll Board employees shall apply for a salary reduction slot through the Board's Benefits and Risk Management Department. The program sponsor must meet the following requirements in order to receive initial approval for salary reductions for its programs:
| A. | use Form 6520.01 F1, Salary Reduction Agreement, incorporated into this policy by reference; | |
| B. | when entering into a hold harmless agreement please use Form 6520.01 F2, Hold Harmless Agreement for Tax-Sheltered Investment Plan, which is incorporated into this policy by reference; and | |
| C. | initially enroll at least twenty (20) employees in the program. |
Each tax-shelter annuity program must receive Board approval prior to the effective date of the program.
F.S. 1001.32, 1001.42, 1001.43, 1012.23
26 U.S.C. 403(b), 457
Adopted 7/17/07