The 457(b) is a non-qualified tax-deferred compensation retirement plan. It is offered to you through your employer and is available only to public employees and certain employees of many tax-exempt organizations. Your contributions are taken directly from your salary before it is taxed, and each plan offers you a selection of investment options.
There are several benefits to consider when joining a 457(b) plan.
- Your retirement- A 457(b) plan is an easy way to invest for your retirement.
- You contribute through the convenience of automatic payroll deduction.
- Employer match is available
- Tax-deferred growth potential – Your money grows on a tax-deferred basis.
- Consistent savings –Saving a set amount on a regular basis, such as every payday, can help increase your earnings.
- Reduced current taxable income – Your gross current taxable income will be reduced by the contributions you make.
- Qualified withdrawals are taxed as ordinary income.
Once you've committed to regular saving with your 457(b) plan, getting money into your account is easy through payroll deduction.
How do I make contributions?
It's simple. Your contributions are made through payroll deduction. To participate in the 457(b) retirement plan, you must first satisfy the eligibility requirements and complete the Participation Agreement. The amount you designate as a deduction will be automatically withdrawn from your paycheck and contributed to your 457(b) retirement plan. Be sure to check with your employer or Lincoln representative for your specific plan enrollment requirements.
Yes. The tax law limits the maximum contributions that can be excluded from your salary in any one year.
What investment choices do I have for my 457(b) plan contributions?
There are a variety of investment options available for, and specific to, your 457(b) plan. Target date funds, Stable value funds and a diversified set of Investment funds are available. Contact us for the list of your choices.
How do I access my 457 plan?
There are two ways to receive money from your 457 plan.
- Prior to retirement, you may take a withdrawal, subject to certain restrictions.
- Upon your retirement, you can begin taking distributions.
If you would like to learn more on the 457(b) plan, please feel free to Contact Us any time!
