If your employer offers a 457(b) retirement plan, you’ll want to take some time to learn more about this type of benefit. Understanding the plan features and how they work can help you make the most of this important benefit, so you can make progress toward your retirement goals. The answers to these frequently asked questions can get you started.
Still having trouble?
What is a governmental deferred compensation plan?
How much can I contribute?
Under current tax law, you may contribute $22,500 a year. Thereafter, the limit will increase for cost-of-living increases. This limit includes any employer contributions to this plan, if applicable. Your representative can help you determine specifically how much you can contribute.
Can I make catch-up contributions?
How are my contributions made?
How can I access my money?
You can receive money from your retirement plan when you retire, if you separate from service with your current employer, or in the event of an unforeseeable emergency. Normal retirement age and an unforeseeable emergency are both subject to the IRS definition. You must begin to take distributions from your retirement plan no later than April 1 of the year following either the year in which you reach age 73 or the year in which you retire, whichever is later.
Can I borrow money from my retirement plan?
How will a retirement plan affect my taxes?
Will my retirement plan affect my Social Security benefits?
What happens if I leave my current job?
If your new employer offers a Section 457(b) retirement plan, you can transfer your money to the new plan without tax consequences. Assets held in a Section 457(b) retirement plan can also be rolled into certain other types of qualified plans, as well as individual retirement accounts (IRA). You may also receive a lump-sum distribution or installment payments. These amounts will be subject to federal withholding and state tax withholding, if applicable. Your 457(b) account is not subject to the 10% early withdrawal penalty. You should work closely with your financial professional and tax advisor to determine the option which best suits your situation.
What happens to my retirement plan if I die?
Are my retirement plan contributions vested?
How will I know the value of my retirement plan?
You will receive quarterly statements detailing your plan activity. You can also access your account information via our website. With online access, you may:
- Monitor and make certain changes to your account
- Easily access historical investment performance for your plan
- Access a summary of your plan’s provisions