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457B GLENDALE ELEMENTARY SCHOOL DISTRICT #40 457(B) DEFERRED COMPENSATION PLAN EMPLOYEE PARTICIPATION AGREEMENT 457B 7301 N. 58th Avenue, Glendale, AZ 85301 Tel (623) 2377149 Employee Name Social

How to fill out 457b 457b deferred compensation

How to fill out 457b deferred compensation:

1. Begin by gathering all necessary paperwork, including the 457b deferred compensation plan enrollment form. This form typically contains personal information, such as your name, address, Social Security number, and contact information. It may also require you to provide your employer information and beneficiary details.
2. Review the available investment options within your 457b plan. Familiarize yourself with the different investment vehicles offered, such as mutual funds, stocks, bonds, and target-date funds. Consider your risk tolerance, investment goals, and time horizon when selecting your investments.
3. Determine your contribution amount. Decide how much money you wish to contribute to your 457b deferred compensation account. Keep in mind that there may be annual contribution limits set by the IRS, and contributions may have tax advantages.
4. Complete the contribution elections section on the enrollment form. Indicate the percentage or dollar amount of your salary that you would like to contribute to the 457b plan. You may also have the option to make catch-up contributions if you are nearing retirement age.
5. Consider whether you want to make traditional pre-tax contributions or Roth after-tax contributions. Pre-tax contributions reduce your taxable income in the year they are made, while Roth contributions are made with after-tax money but can potentially be withdrawn tax-free in retirement.
6. Fill out the beneficiary designation section on the form. This is where you specify who will receive your 457b account balance in the event of your death. It is important to regularly review and update your beneficiary designations to ensure they align with your wishes.

Who needs 457b deferred compensation:

1. Employees of state and local governments, as well as some nonprofit organizations, may be eligible for 457b deferred compensation plans. These plans are typically offered as a supplemental retirement savings option to employees who are already participating in a qualified pension or retirement plan.
2. Individuals who anticipate needing additional retirement income beyond what will be provided by other retirement plans can benefit from a 457b deferred compensation plan. It allows for tax-advantaged growth and potentially higher contribution limits compared to traditional Individual Retirement Accounts (IRAs).
3. People who prioritize tax efficiency may find the 457b plan valuable, as contributions are made on a pre-tax or after-tax basis, potentially reducing their current or future tax liability. Additionally, investment gains within the plan are tax-deferred until withdrawals are made during retirement.
4. Those who desire flexibility in retirement planning may find the 457b plan appealing. Unlike other retirement accounts, there are no early withdrawal penalties for accessing funds before age 59.5 if you separate from service. However, income taxes will still apply. This feature can be advantageous for individuals who may need access to their retirement savings before traditional retirement age.

In conclusion, filling out a 457b deferred compensation plan involves completing the necessary paperwork, selecting investment options, deciding on contribution amounts, and designating beneficiaries. This retirement savings option is particularly suitable for eligible employees of government entities and nonprofit organizations, individuals seeking additional retirement income, those looking for tax advantages, and those desiring flexibility in retirement planning.

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What is 457b 457b deferred compensation?

457b deferred compensation is a retirement savings plan for state and local government employees and employees of tax-exempt organizations.

Who is required to file 457b deferred compensation?

Employees of state and local government agencies and employees of tax-exempt organizations are required to file 457b deferred compensation.

How to fill out 457b deferred compensation?

To fill out 457b deferred compensation, employees need to contribute a portion of their salary to the plan through automatic payroll deductions.

What is the purpose of 457b deferred compensation?

The purpose of 457b deferred compensation is to help employees save for retirement and defer income taxes on their contributions until withdrawal.

What information must be reported on 457b deferred compensation?

Employees must report the total amount contributed to the plan for the year, any withdrawals made from the plan, and any earnings or losses on the investments.