457(b) plan

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Participation 

Employees who are contributing the maximum allowable deferral to the 403(b) plan are eligible to participate in the 457(b) plan.

To participate in the 457(b) plan, you must meet with your financial professional to set up an account and complete a 457(b) Deferred Compensation Agreement to withhold tax-deferred contributions from your compensation. Online enrollment is not available for this plan.

Employees will enter the plan for purposes of making employee deferrals on the first day of the month following completion of the Deferred Compensation Agreement. 

Starting early has its advantages

Your contributions

Employees contribute elective deferrals through a salary reduction agreement with Franciscan Alliance. These deferrals are limited to the maximum amount allowed by the Internal Revenue Service (IRS) contribution limit. Deferrals may not be made from severance payments.

Catch-up contributions

Catch-up contributions are not available for not-for-profit 457(b) plans. However, participants within three years of normal retirement age may make  contributions up to two times the annual limit.

Employer contributions

Please note that there are no employer contributions made to this plan.

Rollovers or transfers

Distributions may not be rolled over to an IRA or a 401(k), 403(b) or 457(f) plan. Consult a tax professional before making a decision to move funds either into or out of a Corebridge Retirement Services account. However, plan-to-plan transfers are permitted to 457(b) plans of eligible employers, provided that the successor plan allows for such transfers and the participant has had severance from employment, subject to the successor 457(b) plan conditions.

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 plus any earnings they generate for the 457(b) plan. 

Please note that all assets of the plan (employee deferrals) are owned by the employer and subject to creditors until distribution has been made to the participant. This is a non-governmental 457(b) plan.

Accessing your money

Withdrawals

Distributions from the plan may be made in the event of termination of employment.

Income taxes are payable upon withdrawal. The 10% federal early withdrawal tax penalty for distributions to participants under age 59½ does not apply to 457(b) withdrawals. Be sure to talk with your tax advisor before withdrawing any money from your plan account. 

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.

• View the entire list of funds and their performance available to 457(b) plan participants.

* Bear in mind that investing involves risk, including the possible loss of principal. Investment values will fluctuate and there is no assurance that the objective of any fund will be achieved. Mutual fund shares are redeemable at the then-current net asset value, which may be more or less than their original cost. Policy Form series GFUA- 315, a group fixed unallocated annuity issued by The Variable Annuity Life Insurance Company, Houston, Texas.