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Village Hall remains closed on Saturdays until further notice. 


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Deferred Compensation / Retirement Savings

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457(b) & Roth IRA Retirement Savings Accounts

Employees may participate in deferred compensation programs, which are designed to supplement your retirement income by saving a portion of each paycheck's pre-tax dollars. The savings and interest earned become taxable when you actually start using the money saved, presumably when you retire.  (However, your savings are available at termination of employment and other qualifying events). Four separate programs (Fidelity, ICMA, IPPFA and Nationwide) are available.

ICMA and IPPFA also offer an after-tax Roth IRA sidecar option to the 457(b) pre-tax retirement account.

Prepare for Retirement With a 457 Plan Designed for Government and Non-Profit Workers

Deferred compensation plans, also known as 457 retirement plans are designed for state and municipal workers and employees of some tax-exempt organizations.

If you participate in a 457 plan, you can contribute a portion of your salary to a retirement account. That money and any earnings you accumulate are not taxed until you withdraw them.

The difference between a 401(k) and a 457 retirement plan

Although they’re alike in many ways, there are some differences between 401(k) and 457 plans, particularly when it comes to early withdrawal penalties and minimum required distributions.

With a 457 retirement savings plan:

  • There isn't a minimum retirement age
  • There isn't a 10% federal penalty for early withdrawal of funds, although withdrawals are subject to ordinary income taxes
  • There is a withdrawal option for unforeseen emergencies that meet certain legal criteria, if all other financial resources are exhausted
  • Distributions are available in a lump sum, annual installments or as an annuity
  • There is no tax withholding if you leave for a new job and roll over your money into an IRA or your new employer's 401(k), 403(b) or 457 plan – or if you take regular installments for 10 years or more. (All other distributions are subject to 20% withholding for federal taxes.)

Keep in mind that federal income tax laws are complex and subject to change. Neither Nationwide nor our representatives give legal or tax advice. Please consult your attorney or tax advisor for answers to specific questions.