What is a 457(b) Plan?
The 457(b) is a retirement plan available to public school employees. It is sometimes referred to as deferred compensation. The 457(b) is named after the section of the IRS code governing it.
The 457(b) can be an excellent way to save money for retirement. It can serve as a supplement to a traditional pension plan or other retirement plans such as the 403(b) plan. You determine the pre-tax amount that you want to defer (up to the IRS maximum) and how it is to be invested.
All employees of WCBOE are eligible to participate.
How a 457(b) Works
Employees may enroll in the 457(b) Plan through Lincoln Financial. Contributions to a 457(b) are made on a pre-tax basis. The amount by which the salary is reduced (payroll deduction) is directed to investments offered through the Lincoln Financial. These contributions are called elective deferrals and are excluded from the employee’s taxable income. Contributions grow tax-deferred until the time of retirement, when withdrawals are taxed as ordinary income. Click here for the 2019 457(b) Contribution Limits.
To enroll in the 447(b) plan, change the amount of your contribution or your investment allocations, or to update beneficiary information, schedule an appointment with the onsite Lincoln Financial Consultant, office hours on Thursdays at Central Office, 2424 Northgate Drive, Suite 100.
Go to the online scheduler and select from the available time slots. Once you've set up your meeting, you'll receive a confirmation email as well as a reminder email the day before the appointment. Appointments are thirty (30) minutes in length.
Lincoln Financial Consultant
Check out this educational Brainshark video from Lincoln Financial Group called Understanding Your 457(b) Plan .