SchoolsFirst Plan Administration 3121 Plan

SchoolsFirst Credit Union Retirement Planning added an Omnibus Budget Reconciliation Act of 1990 (3121) Plan for employees to save more for retirement. In lieu of paying and withholding Social Security/FICA taxes, your employer contributes money into this plan specifically for you.

How our 3121 Plan works

Your account is funded with employee and/or employer contributions equal to 7.5% of your total (gross) compensation and is invested in a fixed-return annuity.

Flexible Distribution Options

  • If you become a full-time employee, you may transfer the full value of your 3121 account into your SchoolsFirst 457(b) or 403(b) retirement plan
  • Separated from Employment/Retired
  • Over Age 59 ½
  • Age 73 - Required Minimum Distribution
  • Purchase of Service Credits (documentation required)
  • Disability
  • De Minimis Distribution1/Job Status Change

Distributions are a taxable event. You will receive a Form 1099-R for the year the distribution occurs. Please consult a tax advisor if you have additional questions.

[1] A balance of $1,000 or less with no contributions (positive or negative) in the prior 24 months will be distributed.