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| | 457(b) Deferred Compensation Plan
School district employees who participate in a 457(b) Deferred Compensation Plan (DCP) may direct-deposit a portion of their salary on a before-tax basis, providing an essential supplement to their retirement plan and Social Security benefits. You do not pay any federal taxes on the amount you contribute or on the earnings until the funds are withdrawn (a penalty could apply if withdrawal occurs prior to age 59 1/2). You can start your contributions with as little as $50 per month and increase them up to $16,500 in 2009 for both 457(b) DCP plans and 403(b) Tax-Sheltered Account plans, totaling up to $33,000 annually. Under certain conditions the maximum may be even greater.
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Features
Automatic payroll deduction
Employer-sponsored and employee-funded
Contributions are made on a pre-tax basis
Eligibility Requirements
Full-time school district employees and part-time employees working at least 20 hours per week |  | | |
| | Contribution Limits
2009 - 100% of Adjusted Gross Income or $16,500, whichever is less.
Catch-up contribution for age 50 or older is $5,500 for 2009.
Up to $33,000 (2 x $16,500) for three consecutive years if you are within three years of normal retirement age.
This option is available for employees who, in previous years, have not deferred or have deferred less than the maximum allowed to the 457(b) plan.*
Distribution Events
Attainment of age 59 1/2
Severance of employment
Unforeseeable emergency, disability, or death
May allow loans
Distribution Requirements
Age 70 1/2 or severance of employment, whichever is later
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| | Call one of our School Retirement Specialists today:
Tim Werdel (661) 833-7544
Sarah Barton (661) 833-7517
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| | Securities offered through CUSO Financial Services, L.P., (CFS) are not NCUA/NCUSIF Insured, not Credit
Union Guaranteed and may lose value. KSFCU is in Partnership with CFS. Financial Advisors are employees of KSFCU and registered through CFS, (Member FINRA/
SIPC)
*For qualified tax advice see a Tax Professional. | |
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