457 Deferred
Compensation Plan
The North Carolina 457 Deferred Compensation Plan is a retirement savings plan
that allows eligible employees to supplement any existing retirement and pension
benefits by saving and investing pre-tax dollars through voluntary salary
deferral. Contributions and any earnings on contributions grow tax-deferred
until money is withdrawn. Distributions are usually taken at retirement when
many participants are typically receiving less income, and may be in a lower
income tax bracket than while working. Distributions are subject to ordinary
income tax.
Plan Highlights
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All permanent state employees are eligible
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You may enroll anytime
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Account is always 100% vested
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Changes can be made anytime
Contribution Limits
457b Deferred Compensation participants can contribute up to 80% of salary
not to exceed the specified contribution limit. The maximum annual
contribution limit will be :
Catch-Up Contributions
Participants in the State of North Carolina 457 Deferred Compensation Plan have
two different opportunities to catch-up and contribute more. "Standard" catch-up
allows participants in the three calendar years prior to normal retirement age
to contribute more (up to double the annual contribution limit - $28,000 in
2005) to the 457 Plan. The additional amount that you may be able to contribute
under the "standard" catch-up option will depend upon the amounts that you were
able to contribute in previous years but did not. Also, participants turning age
50 or older in 2005 may contribute an additional $4,000. This additional
contribution amount for Age 50+ will increase by $1,000 in 2006 to $5,000, then
it will be indexed in $500 increments. You may not use the "standard" catch-up
provision and the Age 50+ provision in the same year.
Great-West/Benefits Corp Representative: 1-888-600-2763
For more information about
457 Deferred Compensation Plan, please see their website, or email or call
Lisa Honeycutt
at 232-5114.
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