457 Plan Overview
Monday thru Friday
7:00am to 9:00pm CST
Monday thru Thursday
7:30am to 5pm CST
Friday 7:30am-3pm CST
Executive leaders and Wealth Management Directors of GreenState Credit Union are eligible to participate in our 457(b) Deferred Compensation Plan through Principal. 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.
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.
The available catch-up contribution is as follows:
The lesser of:
the annual deferral limit in place for that year, or
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.
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 515-657-4106 or via email at firstname.lastname@example.org.