457(b) plan
Welcome to the Clarke County School District retirement plan. Click below to view the features and highlights of your employer’s 457(b) retirement plan.
The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.
Take advantage today
An eligible employee may elect to defer compensation for a calendar month by entering into a Deferred Compensation Agreement before the first day of the month in which the compensation is paid or made available. A new eligible employee may defer compensation payable in the calendar month which includes the first day of employment by entering into a Deferred Compensation Agreement on or before the first day of employment.
There is no age or service requirement for eligible employees to participate in the plan.
Starting early has its advantages
Contributions
SECURE Act 2.0 of 2022 changed the timing of deferral elections for governmental 457(b) plans. You may now elect to defer a portion of your compensation any time prior to the date compensation becomes available. The maximum amount you are allowed to contribute to your 457(b) plan is based on your taxable compensation as defined by the Internal Revenue Code.
Generally, you can contribute up to 100% of your salary on a pretax basis, up to the maximum IRS contribution limit. Special catch-up provisions may also be available. Talk to your financial professional for more information.
If you have an existing qualified retirement plan (pretax), qualified retirement plan (after-tax) or deferred compensation plan account with a prior employer or hold a traditional IRA account, you can transfer or roll over that account into the plan anytime.
Important considerations before deciding to move funds either into or out of a Corebridge Retirement Services account
There are many things to consider. For starters, you will want to carefully review and compare your existing account and the new account, including: fees and charges; guarantees and benefits; and, any limitations under either of the accounts. Also, you will want to know whether a surrender of your current account could result in charges. Your financial professional can help you review these and other important considerations. Consult a tax professional before making a decision to move funds either into or out of a Corebridge account.
Can I stop or change my contributions?
You may stop, increase or decrease your contributions by giving notice to your employer. Your employer will change your contribution election as soon as administratively feasible after receiving your request. 401k and 403b plans allow participants to start and stop as they wish; that is now the same for 457b governmental plans.
Roth account contributions
You may also make after-tax contributions to a Roth account in the plan by convenient payroll deduction. You have a choice regarding your elective contributions. You can direct all of your contributions to a traditional pretax account, to a Roth account or to a combination of the two. Contributions to a Roth account are after-tax. Regardless of your election, you are subject to the annual contribution limits detailed previously. This plan permits in-plan Roth conversions.
Employer contributions
The employer may, in its absolute discretion, make an employer contribution to the plan, and may determine, in its absolute discretion, how any such employer contribution shall be allocated among plan participants. This discretionary employer contribution may be a matching or non-matching contribution. Note, however, that employer contributions lower the maximum amount an employee can contribute.
Vesting
Vesting is a participant’s right of ownership to the money in his or her plan account. You are always 100% vested in employee contributions, and rollover contributions, plus any earnings they generate. Employer contributions to the plan, plus any earnings they generate, are fully and immediately vested as well.
Accessing your money
Withdrawals
Money may be withdrawn from the plan in these events:
- Death
- Disability
- Severance from employment
- Retirement
- Unforeseeable emergency which is defined as a severe financial hardship resulting from a sudden and unexpected illness or accident (involving the participant or a dependent), a loss of property due to casualty, or other similar extraordinary and unforeseeable circumstances due to events beyond your control.
- Taking the Required Minimum Distributions when required by law
- A one-time withdrawal is allowed if your account balance is $5,000 or less and there have been no deferrals for the past two years and no prior withdrawals of this type have been taken.
In addition, the Internal Revenue Service (IRS) requires you to take Required Minimum Distribution (RMD) withdrawals from your retirement account(s) annually beginning the year you reach the RMD eligible age. RMD eligible age is:
- Age 73 if you were born January 1, 1951, or later (The RMD eligible age will increase to age 75 after December 31, 2032)
- Age 72 if you were born after June 30, 1949, and before January 1, 1951 (For individuals turning age 72 in 2023, no RMD payment is required in 2023)
- Age 70 ½ if you were born before July 1, 1949.
Loans
The plan is intended to help you put aside money for your retirement. However, Clarke County School District has included a plan feature that enables you to access money from the plan.
- The amount the plan can loan to you is limited by rules under the tax law. All loans will be limited to the lesser of: one-half of your vested account balance or $50,000.
- The minimum loan amount is $1,000.
- All loans must generally be repaid within five years.
- You can have two loans outstanding at a time.
- A $50.00 processing fee for all new loans and a $50.00 per year loan maintenance fee are charged to your account.
Other requirements and limits must be met prior to borrowing money from your account. For additional information regarding loans, please see your financial professional.
An array of investment choices
Funds & performance
The following mutual funds and the fixed-interest option are available in your retirement plan. They provide you with the flexibility you need to help create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.
To view or print a prospectus, access “Prospectuses and Other Important Materials.” The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1.800.428.2542.
Transfer restrictions to the fixed-interest option
Generally, you may transfer assets from the fixed-interest option into equity options at any time and, after 90 days, from equity options into another fixed-income option such as a money market fund, a stable-value fund or certain short-term bond funds, if such competing options are allowed in the plan.
RO 2933713 (06/2023)