Take advantage today
Participation in the 457(b) plan is open to all employees. There is no age or service requirement for eligible employees to participate in the plan.
Starting early has its advantages
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.
Accessing your money before retirement
Your plan was established to encourage long-term savings, so withdrawals prior to age 59½ might be subject to federal restrictions. Unlike many other plan types, there is no 10% federal tax penalty for early withdrawals in the 457(b) plan except on amounts rolled over from other non-457(b) eligible retirement plans and withdrawn prior to age 59½.
Generally, depending on your employer’s plan provisions, you may withdraw your vested account balance if you meet one of the following requirements:
Retirement or separation from service
Tax-free loans make it possible for you to access your account without permanently reducing your account balance. Defaulted loan amounts (not repaid on time) will be taxed as ordinary income.
A 1180907 (6/2023)