A 457(b) deferred compensation plan is a retirement plan offered by your employer, created to allow public employees like you to put aside money from each paycheck toward retirement. A deferred comp plan can help bridge the gap between what you have in your pension and Social Security, and how much you'll need in retirement.
Frequently asked questions about Deferred Compensation plans:
- What sets a 457(b) apart from other retirement plans? 457(b) may offer benefits other retirement plans can't, such as retirement income before the age of 59 1/2 without the additional 10% tax withholding required in other plans
- What does tax-deferred mean? Basically, you don't pay income taxes on your deferred comp plan contributions or earnings until you begin to take income from your account. This may lower your taxable income now and in retirement. Withdrawals taken in retirement are taxed as regular income
- How much can I put into a 457(b) plan? Check out the current contribution limits
- Can I combine retirement accounts? Our Retirement Specialists will work with you to combine or consolidate your eligible retirement accounts into your deferred comp account, where eligible. This may make managing your retirement investments a little easier
Neither Nationwide nor its representatives may offer investment, tax or legal advice. You should consult your own counsel before making decisions about Plan participation.