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This document is a participation agreement for employees of the City of Portland wishing to enroll in the 457 Deferred Compensation Plan. It includes options for new enrollment, increasing or decreasing

How to fill out 457 deferred compensation plan

How to fill out 457 Deferred Compensation Plan Participation Agreement

1. Obtain the 457 Deferred Compensation Plan Participation Agreement form from your employer or the plan administrator.
2. Read the instructions carefully to understand the terms and conditions of the plan.
3. Fill out your personal information including name, address, and Social Security number in the designated sections.
4. Indicate your desired deferral amount or percentage of your salary to be contributed to the plan.
5. Choose your investment options as applicable, based on the options provided in the agreement.
6. Review the contributions and adjustments, ensuring you understand the tax implications.
7. Sign and date the form to confirm your agreement to participate in the plan.
8. Submit the completed form to your employer or plan administrator for processing.

Who needs 457 Deferred Compensation Plan Participation Agreement?

1. Employees of eligible governmental agencies or non-profit organizations who wish to defer a portion of their compensation for retirement savings.
2. Individuals seeking potential tax benefits associated with deferred compensation.
3. Those planning for financial security in retirement and wishing to supplement their retirement income.

People Also Ask about

What is a 457 deferred compensation plan?

Special 457(b) catch-up contributions, if permitted by the plan, allow a participant for 3 years prior to the normal retirement age (as specified in the plan) to contribute the lesser of: the elective deferral limit ($23,000 in 2024; $22,500 in 2023; $20,500 in 2022; $19,500 in 2020 and in 2021).

What is the 3 year rule for 457 catch up?

Special 457(b) catch-up contributions, if permitted by the plan, allow a participant for 3 years prior to the normal retirement age (as specified in the plan) to contribute the lesser of: the elective deferral limit ($23,000 in 2024; $22,500 in 2023; $20,500 in 2022; $19,500 in 2020 and in 2021).

What are the downsides of a 457 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.

Is it a good idea to have a 457 plan?

A 457 is the best retirement savings account available. I wish everyone had access to one. The benefit of a Traditional 457, is that once you leave your employer, you are able to take distributions without any penalties regardless of your age.

At what age can you withdraw from 457 without paying taxes?

A 457(b) plan is a great retirement savings tool, but it's not immune to losses. Market downturns, poor investment choices, and high fees can erode your savings over time. If you're counting on your 457(b) for retirement income, protecting your money should be a priority.

For pdfFiller’s FAQs

What is 457 Deferred Compensation Plan Participation Agreement?

The 457 Deferred Compensation Plan Participation Agreement is a document that formalizes an individual's participation in a deferred compensation plan, allowing them to set aside a portion of their income for retirement on a tax-deferred basis.

Who is required to file 457 Deferred Compensation Plan Participation Agreement?

Employees of eligible governmental and non-profit organizations who wish to participate in the 457 Deferred Compensation Plan must file the Participation Agreement.

How to fill out 457 Deferred Compensation Plan Participation Agreement?

To fill out the 457 Deferred Compensation Plan Participation Agreement, individuals should provide personal information, specify the compensation to be deferred, and select investment options as required by the plan.

What is the purpose of 457 Deferred Compensation Plan Participation Agreement?

The purpose of the 457 Deferred Compensation Plan Participation Agreement is to allow employees to defer income, thereby reducing their current taxable income, and to save for retirement in a structured way.

What information must be reported on 457 Deferred Compensation Plan Participation Agreement?

The information that must be reported includes the employee's personal details, the deferral amount, agreed salary, investment choices, and any other specific terms required by the plan provider.