How does a 403(b) work? Employees elect to set aside money for retirement on a pretax basis through a salary reduction agreement with New Canaan Public Schools (NCPS). This is an arrangement under which the participating employee agrees to take a reduction in salary. The amount by which the salary is reduced is directed to investments offered through the employer. These contributions are called elective deferrals and are excluded from the employee's income. Contributions grow income tax-deferred until the time of retirement, when withdrawals are taxed as ordinary income. Further details on the 403(b) can be found in IRS Publication 571, Tax Sheltered Annuity 403(b) Plans. This publication may be downloaded from the Internal Revenue Service (IRS). It may also be obtained by calling 1-800-TAX-FORMS.   next question    back to 403(b) questions view 457(b) questions    view investment questions					403(b) Vendor List 457(b) Vendor List Savings Calculator Savings Distribution Calculator 403(b) Questions 457(b) Questions Investment Questions District Contacts Daryl DiZenzo Payroll/Benefits Accountant 203.594.4016 Mike Lagas Business Manager 203.594.4014 more resources