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Your specific eligibility in the 457(b) Deferred Compensation Plan (DCP) is determined by your employer at date of your full-time employment.

Please note that you should review your University's plan document in order to get the specific details of your plan or you may contact your financial professional. 

Starting early has its advantages

Contributions

Through payroll deduction, you will be able to contribute a portion of your compensation into the plan up to the maximum IRS contribution limit. Your contributions will be deducted from your pay, automatically, and on a pretax basis.

Your employer may contribute a certain percentage of your total compensation to the plan as well. The actual percentage amount for the employer contribution is determined by your University's plan document.

2022 contribution limit

Your contribution limit for 2022 is $20,500.

Catch-up contributions

You may be eligible for catch-up contributions depending on your University's plan document. The catch-up contributions are as follows:

2022 catch-up contributions

> $20,500 if you have undercontributed in prior years and are within the last three taxable years before ending the year before the year you attain normal retirement age as specified under the plan, or

> $6,500 if you are age 50 or older

If you are eligible for both, you cannot combine the two catch-up amounts, but may contribute up to the higher amount. Please consult a tax professional to determine which catch-up contribution option would work best for your financial situation.

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, rollover contributions, plus any earnings they generate.

For employer contributions, vesting schedules may apply. See your University's plan document for more details.   

Please note that you should review your University's plan document in order to get the specific details of your plan or you may contact your financial professional. 

Accessing your money before retirement

Withdrawals

Your plan was established to encourage long-term savings. A 457(b) plan has more stringent withdrawal restrictions than the 403(b) plan while you are employed, but is not subject to a 10% federal early withdrawal penalty except on amounts rolled over from other non-457(b) eligible retirement plans. 

Depending on your University's plan provisions, a distribution may be made in these events: 

  • Attaining age 72 (age 70½ if born before July 1, 1949) (if your plan allows in-service distributions)
  • Retirement or separation from service
  • Your death  
  • Unforeseeable emergency (if elected by your University)  

Minimum distribution required at attaining age 72 (age 70½ if born before July 1, 1949) or upon retirement, whichever is later. Bear in mind that income taxes are payable upon withdrawal.

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.

Loans

The plan is intended to help you put aside money for your retirement. However, your plan has included a feature that enables you to access money without permanently reducing your account. See your University's plan document for more details.

Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal early withdrawal penalty if you are under age 59½. Other requirements and limits must be met prior to borrowing money from your account. For additional information regarding loans, please see your financial professional. 

Please note that you should review your University's plan document in order to get the specific details of your plan or you may contact your financial professional.