457(b) Group Plans

Accelerate Your Retirement Savings

If you work in the education or municipal government sector, you may be eligible to participate in a supplemental 457(b) plan offered by your employer, allowing you to build more wealth and plan an even more secure retirement.

Take advantage of a 457(b) plan to accelerate your retirement savings. With separate contribution limits from 401(k) and 403(b) plans, 457(b) plans provide a way to contribute even more money and offer additional options for investing.

By contributing an additional amount to a 457(b) plan, you could accumulate exponentially more retirement savings.

Choose low fee investments with
Retirement Education Partners

We offer solutions for your 457(b) that combine fixed indexed annuities with mutual funds, offering you a wide choice of investments with low fees.

Here’s how a 457(b) deferred compensation plan helps you achieve your retirement wishes:

  • Through payroll deductions, you contribute to the plan on a pre-tax basis, deferring the compensation and reducing your taxable income. You don’t pay income tax on the contributed amount until you withdraw the funds.
  • Your contribution and the earnings grow tax deferred. Not only is your contribution tax deferred, but so are the earnings. You pay ordinary income tax only as you withdraw the funds.
  • Early withdrawals are not subject to the 10% premature distribution penalty.
  • Flexibility. Most plans allow you to start, stop, increase or decrease your contributions at any time.
  • Portability. If you leave your job, you may be able to roll your 457(b) account into another employer’s eligible retirement plan, traditional IRA or Roth IRA.
  • Not everyone begins planning for retirement at the same time. If you’re age 50 or older, you may be able make catch-up contributions beyond the regular IRS contribution limits.
  • For certain unforeseeable expenses, you can make emergency distributions from a 457(b) account – depending on your employer’s plan.
  • You decide how to invest your savings.

Make additional contributions to a 457(b) and watch your savings build momentum.

With a 457(b) plan, your earnings re-invest to grow your savings exponentially. That’s why there’s no better time than the present to contribute just a little more to your retirement plan. For example, when you defer just an additional $25 each paycheck, you could accumulate an additional $9,304 after 10 years, $27,605 after 20 years, and $63,607 after 30 years.¹ This hypothetical example shows you how small contributions to a 457(b) plan can accelerate your savings and help you live your retirement dreams. If you can contribute more, you’ll amass even more.

EDUCATE YOURSELF

It’s important to educate yourself on the best choices for you when contributing to a 457(b) plan. Retirement Education Partners helps you understand the costs and benefits of your investment options within the 457(b) plan. We can help you strategize the best ways to combine the investments in a 457(b) plan with your other retirement accounts to provide substantial income when you retire.

¹ This assumes a compound annual rate of 7% and a 25% federal tax rate, for a single person with an annual salary of $38,000 and one deduction for federal tax purposes.

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