The 457 plan is a district-sponsored voluntary retirement savings plan that allows an employee to save money for retirement on a tax-deferred basis.  Remember that all investing involves risk.

The plan contains most of the same features of the 403(b) plan, but is different in one unique way. Distributions from the 457 Deferred Compensation Plan are not subject to the 10% excise tax for early withdrawal.

Contribution Limits

• 2023: $22,500
• 2024: $23,000
• Participants aged 50 and older at any time during the calendar year are permitted to contribute an additional $7,500.

In addition to pre-tax deferrals on your 457 plan you may now elect Roth deferrals, which are made on an after-tax basis. Roth deferrals and associated earnings can be withdrawn tax-free in retirement if the requirements for a “qualified distribution” are met.

See a Benefits Advisor for more information, or call Retirement Managers at 866.294.7950, or log onto www.myretirementmanager.com to enroll in the 457 Plan. Enroll on the benefit website at open enrollment or at www.myretirementmanager.com all year.  Follow through the steps and information to enroll in your investment and salary reduction.

457(b) PLAN INFORMATION