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State of California Savings Plus Program 457 Deferred Compensation Plan TRADITIONAL CATCH-UP BOOKLET All information contained in this booklet was current as of the printing date. The Plan Administrator

How to fill out 457 deferred compensation plan

How to fill out a 457 deferred compensation plan:

1. Gather necessary information: Start by collecting all the required documentation, such as your personal information, employment details, and beneficiary information.
2. Review the plan's terms and conditions: Carefully read through the 457 deferred compensation plan's terms and conditions. Understand the eligibility criteria, contribution limits, investment options, and withdrawal rules.
3. Consult with a financial advisor: If you have any doubts or questions regarding the plan, consider seeking guidance from a financial advisor. They can help you understand the complexities of the plan and provide personalized advice based on your financial goals.
4. Enroll in the plan: Once you feel confident and well-informed, proceed with the enrollment process. This may require completing enrollment forms either online or in paper format. Ensure that you provide accurate and up-to-date information.
5. Determine your contribution amount: Decide how much you want to contribute to your 457 deferred compensation plan. Consider your budget, financial goals, and other retirement savings you may have. Be aware of the contribution limits set by the Internal Revenue Service (IRS).
6. Select your investment options: Most 457 deferred compensation plans provide a range of investment options. It's important to carefully evaluate each option's risk level, potential returns, and align them with your investment preferences and risk tolerance.
7. Set beneficiaries: Designate beneficiaries who will receive your assets in the event of your death. Review and update this information regularly, especially after significant life events such as marriage, divorce, or the birth of a child.

Who needs a 457 deferred compensation plan?

1. Government employees: 457 deferred compensation plans are primarily designed for government employees, including state and local government workers, firefighters, police officers, and certain nonprofit organization employees.
2. Individuals seeking to supplement retirement savings: If you want to boost your retirement savings beyond what is offered by traditional pension plans or other retirement accounts, a 457 deferred compensation plan can be a valuable tool.
3. High-income earners: 457 deferred compensation plans can be particularly advantageous for high-income earners who want to reduce their taxable income while simultaneously saving for retirement. These plans allow for higher contribution amounts compared to other retirement accounts.
4. Those seeking flexibility in retirement withdrawals: Unlike some other retirement accounts, 457 deferred compensation plans allow penalty-free withdrawals before the age of 59 ½, as long as you separate from service. This flexibility can be beneficial for individuals who may need access to their retirement funds earlier.
5. Individuals looking for tax advantages: Contributions made to a 457 deferred compensation plan are generally tax-deferred, meaning you won't pay taxes on the contributed amount until you withdraw it. This can provide potential tax savings, especially if you expect to be in a lower tax bracket during retirement.

Remember, it's important to consult with a financial advisor or tax professional to understand how a 457 deferred compensation plan fits into your overall financial plan and retirement goals.

For pdfFiller’s FAQs

What is 457 deferred compensation plan?

A 457 deferred compensation plan is a retirement savings plan that allows employees of state and local governments, as well as certain non-profit organizations, to defer a portion of their salary into a retirement account.

Who is required to file 457 deferred compensation plan?

Employees of state and local governments, as well as certain non-profit organizations, are required to file a 457 deferred compensation plan if they choose to participate in the plan.

How to fill out 457 deferred compensation plan?

To fill out a 457 deferred compensation plan, employees must decide how much of their salary they want to defer, choose their investment options, and designate beneficiaries.

What is the purpose of 457 deferred compensation plan?

The purpose of a 457 deferred compensation plan is to help employees save for retirement by allowing them to defer a portion of their salary into a tax-advantaged account.

What information must be reported on 457 deferred compensation plan?

The 457 deferred compensation plan must include information such as the employee's deferral amount, investment selections, beneficiary designations, and any distributions taken.

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