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457(b) Deferred Compensation Plan
New federal income tax laws allow public
employers to offer TWO pre-tax retirement savings plans trough
payroll reduction. In addition to the 403(b) Tax Deferred Annuity
Plan offered, a 457(b) Deferred Compensation Plan is now being
offered.
While the plans are similar, the two major
differences are:
* The 457(b) has no 10% penalty for withdrawals
after retirement but before age 59 ½. This is better for
those who may leave work or retire before age 59 ½.
* The 457 (b) has no access to funds during
employment. The 403(b) does which may serve you better in event
of personal hardship.
* The 457(b) may be entered into in addition to, not in lieu of,
the 403(b) with no offset, virtually doubling an employee’s
ability for tax deferred monies and savings.
The Human Resources Office is administering
information and enrollment in both plans. However, information,
forms, investment advice, and changes are only available through
the approved companies which AASU has contracted for these 457(b)
benefits:
VALIC Financial Advisors, Inc.
(800) 892-5558 (Atlanta)
Bill Gladden, CFP
(912) 238-3382 (Savannah)
TIAA-CREFF Individual and Institutional
Services, Inc.
James Kelly – Atlanta Office
(800) 842-2003
Interested employees may, on their own,
contact either of these parties for more specific information
or advice. Both will be happy to assist you, complete required
paperwork, and forward a Salary Reduction Agreement to Human Resources
for payroll processing. Ten-month faculty payroll deductions may
begin in August, and all others (working 12 months) may begin
in June.
(Human Resources is not licensed to and
will not provide personal investment advice.)
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