Deferred Compensation Plan - 457(b)
A 457(b) is a supplemental account that offers employees the opportunity to make tax-deferred contributions. When combined with other retirement programs, a tax-deferred annuity enhances your ability to provide a solid financial foundation for retirement years.
The 457(b) is only available to executive employees who have the intent to contribute the maximum annual amount, including any eligible catch up amounts, to the TDA.
Contribution limits are set annually by the Internal Revenue Service (IRS).
The 2020 contribution limit is:
If you are over the age of 50 you are eligible to contribute an additional $6,500 catch up amount, bringing your total to $26,000 for 2020.
- Eligible employees must establish a TDA account and contribute the maximum amount, including any catch up amounts
- Complete the Deferred Compensation Plan Salary Reduction Agreement Form indicating both your biweekly goal and your annual goal.
Employees are encouraged to speak with a financial adviser before opening a 457(b) account.
While the University assists with the payroll deductions for this, the account and the funds are entirely managed by the employee.
The 457(b) is available with TIAA only.
Upon termination of all employment, employees may request a lump sum distribution, roll funds over into another qualified plan or IRA, or leave the funds with TIAA.
Contact TIAA-CREF upon your separation to receive paperwork and additional information about managing your account.