Here you can find 6 valuable things about A 457 retirement plan that is pertinent for you to know if you’re participating in this plan or going to use it.

1. How much you can contribute on a Tax-Deferred Basis?

It is possible for you to contribute the littlest of $15,500 or 100% of compensation. You can contribute an additional $5,000 to make a total of $20,500 if you’re eligible for catch-up contribution.

2. How are the contributions invested?

A lot of 457 plans offer both fixed and variable investment options. The money you contribute is invested at your direction in one or more of a variety of investment options offered by the plan. The fixed options, which are through bank and insurance company products, guarantee principal and withdrawn.

5. If you leave your current employer

You can:

- Leave your money invested in the 457 retirement plan until your required distribution date

- If another employer’s plan allows for rollover you are able to rollover your plan into your new employer’s eligible qualified plan,

- There are some circumstances that may allow you to roll your vested account balance into an IRA subject to withdrawal charges and/or fees.

- Withdraw your money, subject to withdrawal charges and/or fees.

6. If you die

Benefits payable upon your death, if any, depend on the allocation of your investment options. Usually, at your death, the money invested will be paid to your designated beneficiary according to the death benefit provisions in the annuity contract. It depends on your age at death and whether or not your annuity payments have started. The account value as of the date of death will be paid to your designated beneficiary.

Read more about 401 retirement plan here.

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