Most people envision their retirement as a reward for a life of hard work….and it should be. But experts say you'll need to replace 70% to 80% of your working income for a comfortable retirement. The truth is saving enough to get to that level takes planning. The money you contribute to your plan comes from your before-tax income, which is set aside in your account where it could grow over time.
A Deferred Compensation Plan is available to all non-temporary employees who are regularly scheduled to work 20 or more hours per week. Under the Plan and Internal Revenue Service (IRS) Code 457, employees may authorize a portion of their salary be withheld and invested for payment at a later date. Neither the deferred amount nor earnings on the investment are subject to current federal or state income taxes. Taxes become payable when deferred income plan earnings are distributed, presumably at retirement when an employee's taxable income is less. An after-tax Roth option is also available.
The maximum amount you are allowed to contribute to your 457 plan is based on taxable compensation as defined by the Internal Revenue Code (IRC). The current maximum contribution amount is 100% of your compensation less any mandatory before tax contributions to a governmental pension plan per year or $22,500 whichever is less. Employees age 50 or over can contribute an additional $7,500 per year.
You can go to www.lincolnfinancial.com to begin a new enrollment, update your beneficiary or change your salary deferral amount, either by percentage or a flat dollar amount. We will receive a report each month detailing the actions that have taken place during the month so we can ensure they are entered in the system for payroll.
Investment Risk vs The Risk of Not Investing (PDF)
Managing Your Account (PDF)
Personal Account Loans
Loans are available to all participating employees. Please review the Managing Your Account Guide above to answer questions you may have.
Lincoln Financial Services