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457(b) plan

Welcome to your 457(b) retirement plan. Click below to view the features and highlights of your employer’s 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

You are immediately eligible to begin contributing to either or both plans.

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.

2024 contribution limit

Your contribution limit for 2024 is $23,000.

Catch-up contributions 

2024 catch-up contributions

> $23,000 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

> $7,500 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.

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.

Vesting

Vesting refers to your “ownership” of a benefit from the plan. You are always 100% vested in the contributions you make to your account and in your rollover contributions, plus any earnings they generate.

Accessing your money before retirement

Withdrawals

Generally, depending on your employer’s plan provisions, you can withdraw from your account balance if you meet one of the following requirements:

  • Your retirement

  • Your death

  • Separation from service

  • Unforeseeable emergencies

Remember that income tax is due at withdrawal, and withdrawals from the 457(b) plan are not subject to the 10% federal tax penalty on early withdrawals except on amounts rolled over from non-457(b) plans.

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.

Distribution options

Depending on your employer’s plan provisions, your withdrawal options include:

  • Transferring your vested account balance to another tax-advantaged plan that accepts rollovers

  • Receiving systematic or partial withdrawals

  • Taking a lump-sum distribution

  • Choosing one of the many annuity options available from Corebridge Retirement Services, inside the plan or via rollover

  • Taking a Required Minimum Distribution when required by law

Generally, income taxes must be paid on all amounts you withdraw from your plan. Federal restrictions and a 10% federal tax penalty may apply to withdrawals prior to age 59½. 

Qualified distributions from a Roth account are tax-free. Generally, a qualified Roth distribution is a distribution that: 

  1. is made five tax years or more following the date the first Roth contribution was made to the plan and 
  2. is after attainment of age 59½, death, or disability. 

Consult your financial professional for more specific information.

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. But Shelby County Schools has included a plan loan feature that enables you to access money from the plans.

  • The amount the plan can lend to you is limited to the lesser of one-half of your vested account balances or $50,000.

  • The minimum loan amount is $1,000.

  • All loans must generally be repaid within five years. A longer term of 15 years may be available if the loan is to be used to purchase your principal residence.

  • You can have only one loan outstanding at a time.

  • You pay interest back to your account. The interest rate on your loan will be the prime rate plus 1%.

  • A $50 processing fee for all new loans and a $30 per year maintenance fee are charged to your account.

Defaulted loan amounts (not repaid on time) will be taxed as ordinary income, and 403(b) defaulted loan amounts might be subject to a 10% federal tax penalty if you are under age 59½.

An array of investment choices

You decide how to invest your plan account. The following funds are available in your retirement plan. They provide you with the flexibility you need to 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.

RO 2933713 (06/2023)