What is a 457(b) Account?

  • 457(b) Retirement Plans

    A 457(b) Plan is a tax-sheltered retirement plan that is available to employees of government and non-profit organizations. Typically, employee contributions are made on a pre-tax basis through a salary reduction agreement with the employer. Employees are eligible to contribute 100 % of includable compensation to a maximum of $22,500.  

    For employees age 50 or older, an additional $7,500 may be contributed. Section 457(b) plans do not have an excise tax for premature distribution, but withdrawals are typically not allowed before employment severance. Section 457(b) plans may provide a loan provision at the Plan’s discretion. Distributions from a 457(b) plan must begin no later than age 70 ½ or the year of separation, if later. If employees are considering retiring before age 60 and anticipate an income need, 457(b) plans allow for distribution prior to age 59 ½ and are not subject to a 10 percent federal tax penalty as are distributions from a 403(b) or IRA plan.

    457(b) Roth

    A Roth account allows you to set aside after-tax money. When you retire you can make tax-free withdrawals of principal, earnings, and interest.  For more information about the benefits of a 457(b) Roth account, review the Valic flyer listed below.

Corebridge Financial Information

FutureFIT University

  • Valic offers a free financial education program called FutureFIT University. Visit the FutureFIT University website. FutureFIT offers short interactive videos on a range of topics including: 

    • Credit scores
    • Savings
    • Identity protection
    • Retirement planning
    • Social Security
    • Financing college and more

    FutureFIT offers a variety of on-demand webinars such as investment planning, retirement, college financial aid, and cash management. Visit the FutureFit Webinars website to watch one at no cost.