3 Contributions The TRF My Choice Plan consists of an employer variable rate share that includes vesting requirements and an employee 3% portion. The TRF My Choice Plan must be offered by an employer in addition to the TRF Hybrid Plan. Employer participation in the TRF My Choice Plan is governed by IC 5-10.4-8 and IC 5-10.4-9. Contributions can be both DC and Rollover Pre-Tax Contributions. 3.1 Contributions The TRF My Choice Plan account is comprised of three types of contributions:  Employer Contributions (Variable)  Mandatory Member Contributions (Fixed)  Voluntary Contributions (Optional) 3.1.1 Employer Contributions (Variable) Employer contributions are placed in an employer contribution subaccount which receives an annual variable rate determined by the Board of Trustees. The employer contributions are available to you according to the vesting schedule detailed in this handbook. 3.1.2 Fixed Member Contributions State law requires that 3% of your gross wages (W-2 reportable wages) be contributed to the TRF My Choice Plan. Working for a school corporation, the 3% is paid by your employer. These contributions and accumulated interest credits (earnings and losses) are refundable to you should you terminate employment prior to becoming eligible for the Employer Contributions according to the vesting schedule. While actively employed in a position covered by the Plan, you are not permitted to withdraw funds. 3.1.3 Voluntary Member Contributions In addition to the 3% mandatory contribution, you may contribute up to an additional 10% of your compensation. This additional 10% is all post-tax. As of January 1, 2018, the Voluntary Pre-Tax Plan was no longer available. When you make post-tax voluntary contributions, federal, state, county, local, and Social Security taxes have already been withheld. The take-home pay is reduced by the total amount contributed. Because these funds have already been taxed, they will not be taxed again; however, it is important to know that any earnings or interest accrued on these funds is still taxable at the time of distribution. You may choose to stop making post-tax voluntary contributions or change the amount deducted at any time. 3.2 Internal Revenue Code 401(a) 17 Limits As a member of TRF My Choice you are subject to the annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) of the IRC. These limits are subject to change on an annual basis. To find out if your annual compensation meets the limit under the IRC, please visit Internal Revenue System’s website at www.irs.gov. 3.3 Rollover Funds into TRF My Choice You may create a Rollover Pre-Tax Contribution account in TRF My Choice with funds rolled over from any of the following:  A qualified plan described in IRS Section 401(a), 403(a) or an annuity contract or account described in Section 403(b) TRF My Choice: Retirement Savings Plan Member Page 10 of 30 Handbook Effective: 07/01/2024