Enrolling in Your 457 Retirement Savings Plan

Congratulations! You are about to begin building for a secure retirement future. And it’s so easy!

With the ICMA-RC 457 Deferred Compensation Plan, you are investing today for your retirement. And because Federal and (in most cases) state income taxes are deferred until they’re withdrawn, you’ll be reducing your current income taxes while boosting your retirement investments. Earnings on your contributions are not taxed either. Plus it’s all handled through automatic payroll deduction, so once you sign up, your employer and ICMA-RC takes care of the rest.

Enrolling

If your employer has a 457 Deferred Compensation Plan information office they will be your best resource for enrolling in your plan. Start there. Otherwise, to enroll, use the 457 Deferred Compensation Plan Employee Enrollment Form. The form is also in the “457 Enrollment Kit” available through your employer.

When completing the enrollment form it is helpful to have given thought to some things in advance. Among the things that you will be asked to decide are:

• Beneficiary Designation: Unlike many insurance annuity programs, in the event of your death, your 457 account balance is not forfeited. Instead it becomes available to your beneficiary— or beneficiaries.
  
  Be sure to include your designated beneficiaries’ dates of birth and Social Security numbers in addition, if applicable, to the percentage of the benefit you want each beneficiary to receive. (Please note: The IRS has rules that cover the designation of your beneficiary. To learn more about these rules contact your employer or contact Investor Services or your ICMA-RC Representative.)
• Amount of Deferral: This is the amount you would like to contribute from your salary. Typically you will choose a percentage of your salary. If you are not sure how much you would like to save try our helpful 5-minute checkup. To learn about the benefits of retirement saving through your 457 plan read our Investing for Retirement Goals guide. Remember most plans will allow you to start, stop, increase or decrease your contributions at any time. Contact your employer or ICMA-RC to find out about any limits or restrictions that may apply to your specific plan.
• Allocation of Contributions: While enrolling you will be asked to specify the investments (typically mutual funds) into which you would like to invest your money. Investing is one of the best ways you can build your retirement security. It is an important decision and you’ll probably need further information. ICMA-RC has many helpful resources available including the Planning and Tools section of this web site. You may also want to consider our one-stop investments like the Milestone Funds and the Model Portfolio Funds, if these options are available to your plan. You may always call Investor Services or contact the ICMA-RC Representative for your plan. You may also contact your ICMA-RC Representative if you would like to meet one-on-one with an Investment Specialist.

On the Enrollment Form, you may invest in one fund or any combination. Be sure to include the fund code and the percentage you wish to allocate to that fund. Check your math. Please make sure that when you are done the total percentage equals 100%.

The Investment Options sheet included with the enrollment packet provides you with the investments available. Remember, you can reallocate your investments at any time.

Once you’ve completed the 457 Enrollment Form, remember to sign it and return it to your Employer as soon as possible.

Once you’ve enrolled in the ICMA-RC 457 Plan, you can easily manage your account on-line and through 24-hour telephone access with VantageLine.

Need more information on the 457 Deferred Compensation Plan or have a question about the specifics of your plan and the investments available to you? Contact Investor Services or your ICMA-RC representative.