457 Plan Overview

Executive leaders and Wealth Management Directors of GreenState Credit Union are eligible to participate in our 457(b) Deferred Compensation Plan. A 457 Deferred Compensation Plan provides an additional retirement savings opportunity for a select group of employees of a non-profit or governmental entity. This additional retirement savings opportunity allows eligible employees to defer the maximum limit to both plans to greatly increase retirement savings.

 

The Basics

• Your 457 Plan allows you to defer up to $19,500 annually.  This is in addition to the contributions made to the 401(k) Plan.

• Distributions are not eligible for rollover but may be taken in installments up to five years to supplement retirement income.

• The 10% penalty for taking money out of the plan before the employee turns 59-1/2 does not apply to 457 plans, as long as the employee is retiring or ending employment. 

• Employees of 457 plans for non-profit entities have the ability to contribute catch up contributions when they are within 3 years of their normal retirement age. 

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The available catch-up contribution is as follows: 

  

The lesser of:

1.     the annual deferral limit in place for that year, or

2.     the “underutilized limit”

 

Items to Consider

• Deferral amounts can be changed as of any payroll period;

• Investment options mirror the 401(k) lineup as closely as possible, with a few notable exceptions due to platform availability; and

• Contributions will be set aside in a Rabbi Trust but are still subject to general creditors in case of an organizational bankruptcy

 

American Trust is typically on-site for meetings annually to meet individually with anyone interested in enrolling or to answer any questions. Eligible employees will receive email notification about the scheduled meeting opportunities.    

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If you meet plan eligibility requirements and interested in enrolling in the 457 Plan, please contact Principal's retirement plan representatives by calling 1-800-547-7754.  Principal will walk you through the enrollment process.  If you have additional questions or would like investment advice, please contact Troy Anderson with CAPTRUST at 1-515-657-4106 or troy.anderson@captrust.com.