457(b) Plans For employees of states, counties, and local governments |
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Your Contributions Limits |
In 2011 you may be able to contribute up to $16,500 (or 100% of your compensation, if less). Refer to your employer’s plan summary for details. You can increase or decrease the amount you contribute to the plan as often as your employer allows. |
Catch-up Contributions |
If you are age 50 or older, you may be eligible to contribute an additional $5,500 in 2011. If you are within the three years of reaching the plan’s normal retirement age, you may be eligible to contribute up to an additional $16,500 in 2011. Refer to your employer’s plan summary for details on eligibility requirements. |
Account Consolidation |
If permitted under your current and prior governmental employers’ plans, you can transfer your vested account balance from a prior employer’s retirement plan to your current employer’s plan. This can make it easier for you to track your retirement savings and maintain a suitably diversified investment portfolio. Always make sure that you find out what, if any, surrender charges may apply before you initiate a transfer. |
Vesting Status |
You are always 100% vested in your own contributions, plus rollover contributions, and any earnings they generate. |
Withdrawals and Distributions |
Generally not available before age 70½ unless you terminate employment, have an unforeseeable emergency, are disabled, or die. Amounts distributed are taxable as ordinary income. You must begin taking distributions when you reach age 70½ or retire from the employer sponsoring the plan, whichever occurs later. |
Other Plan Features |
Availability of employer contributions, loans, and unforeseeable emergency withdrawals varies by plan. Check your employer’s plan summary to see if these features are offered. |
Learn More |
About your employer’s 457(b) plan: refer to your employer’s 457(b) plan summary. |
