457(b) Retirement Plan

The 457(b) plan is an employer-sponsored voluntary retirement savings plan that allows you to save money for retirement on a tax-deferred basis. The plan contains most of the same features of the 403(b) plan but is different in one unique way. Distributions from a 457(b) Deferred Compensation Plan are not subject to the 10 percent excise tax for early withdrawal.

Benefits Include:

• Investment options: fixed annuities, variable annuities, or mutual funds
• Flexibility: start, stop, and adjust your contributions as allowed by your employer’s plan
• Receive periodic account statements
• No 10% federal penalty on interest or earnings for early withdrawal
• No current federal income taxes on the money you put into the plan until it is time to take withdrawals

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.

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