What is a 457 deferred compensation plan?
A governmental 457(b) deferred compensation plan (457 plan)1 is a retirement savings plan that allows eligible employees to supplement any existing retirement and pension benefits by saving and investing pre-tax dollars through voluntary salary deferral. Contributions and any earnings on contributions are tax-deferred until money is withdrawn. Distributions are usually taken at retirement when many participants are typically receiving less income, and may be in a lower income tax bracket than while working. Distributions are subject to ordinary income tax.
1All references to a 457 plan are to a governmental 457(b) plan.
Why should I participate in the Plan?
You may want to participate if you are interested in saving and investing additional money for retirement and/or reducing the amount of current federal income tax you pay each year. Your Nevada Deferred Compensation Plan can be an excellent tool to help make your future more secure. View Your Plan...Your Future (pdf) presentation for more information.
Is there any reason why I should not participate in the Plan?
Participating may not be advantageous if you are experiencing financial difficulties, have excessive debt, do not have an adequate emergency fund (typically in an easy-to-access account). In addition, if you think that your retirement income will be higher than your current working income, you may be taxed at a higher tax rate when you take distributions in comparison to your current tax rate.
Who is eligible to enroll?
All current employees of the State of Nevada, including Higher Education, are immediately eligible to participate in the Plan. Seasonal and temporary employees are also eligible. Other local government employers are also part of the Nevada Deferred Compensation Program. Please contact us for a list of participating partners.
Please contact the NDC office if you have any questions in regards to your eligibility to enroll in the plan. Individuals who have separated from service or have retired are eligible to keep their balance in the plan.
How do I enroll with Voya Financial?
Contact our recordkeeper, Voya Financial, to request enrollment information or make an appointment. The recordkeeper will supply you with all the paperwork necessary to start investing.
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