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This document serves as an enrollment form and informational guide for employees of Ball State University to participate in the 457(b) Deferred Compensation Plan, detailing investment options, contribution

How to fill out 457b deferred compensation plan

How to fill out 457(b) Deferred Compensation Plan

1. Check your eligibility for the 457(b) plan through your employer.
2. Review the plan documents and understand the investment options available.
3. Decide on the contribution amount you want to defer from your paycheck, keeping in mind the annual limits.
4. Complete the enrollment form provided by your employer, ensuring accurate personal and financial information.
5. Submit the enrollment form to your human resources or benefits department.
6. Monitor your contributions and investment performance through your account online or by contacting your plan administrator.

Who needs 457(b) Deferred Compensation Plan?

1. State and local government employees.
2. Certain non-profit organization employees.
3. Individuals seeking to save for retirement while benefiting from tax-deferred growth on investments.
4. Employees looking for an additional retirement funding option alongside other plans like 401(k) or IRA.

People Also Ask about

How does a 457 deferred compensation plan work?

457(b) Assets can be withdrawn without penalty at any age upon separation from service from the plan sponsor, or age 70½ if still working.

What is a 457 B deferred compensation plan?

Cons of 457(b) plans: Fewer investing options than 401(k)s (Not as common today) Only available to certain employees employed by state or local governments or qualifying nonprofits. Employer contributions count toward the annual limit. Non-governmental 457(b) plans are riskier.

What are the disadvantages of a 457 B plan?

Cons of 457(b) plans: Fewer investing options than 401(k)s (Not as common today) Only available to certain employees employed by state or local governments or qualifying nonprofits. Employer contributions count toward the annual limit. Non-governmental 457(b) plans are riskier.

For pdfFiller’s FAQs

What is 457(b) Deferred Compensation Plan?

The 457(b) Deferred Compensation Plan is a non-qualified, tax-advantaged retirement savings plan designed for governmental and certain nonprofit employees, allowing them to defer a portion of their income to save for retirement.

Who is required to file 457(b) Deferred Compensation Plan?

Employers that offer a 457(b) plan are generally responsible for filing necessary forms and reports related to the plan, including tax-related documents to the IRS. Employees participating in the plan are not required to file separate forms for the plan itself.

How to fill out 457(b) Deferred Compensation Plan?

To fill out the 457(b) Deferred Compensation Plan, participants typically need to complete the enrollment forms provided by the employer's plan administrator, specifying contribution amounts and beneficiary designations, following the guidelines and instructions provided in the plan documents.

What is the purpose of 457(b) Deferred Compensation Plan?

The purpose of the 457(b) Deferred Compensation Plan is to enable eligible employees to save for retirement while reducing their current taxable income, providing flexibility in retirement planning and accumulating savings on a tax-deferred basis.

What information must be reported on 457(b) Deferred Compensation Plan?

Employers must report information such as contributions made to the plan, withdrawals, and account balances on forms like the IRS Form 5500 and other compliance documents, ensuring transparency and regulatory adherence.