457 Deferred Compensation Plan is a pre-tax deduction from an employee paycheck into an investment account. The pre-tax deduction decreases taxable income, thereby decreasing the tax liability.
A great way to set aside extra money toward retirement!
The funds in the deferred compensation account are tied to employment and can not be accessed while still employed with Coconino County except for specified circumstances permitted by the IRS.
IRS Contribution Limits
Understanding IRS contribution limits is important, especially when your goal is to contribute the maximum to your account. Even if you can't do the max, consider increasing your contribution a little each year to potentially move closer to your retirement goals.
2019 Deferral Limits
- Standard Deferral: $19,000
- Age 50 + Catch-up: $6,000
- Special 457 (b) Catch-up: up to $38,000
You can learn more about the deferred compensation plans for state and local governments on the website of the IRS:here
Coconino County Deferred Compensation Vendors
- Lincoln Financial Advisors
- VOYA (Formerly ING)