457(b)
School district employees who participate in a 457(b) Deferred Compensation Plan (DCP) may direct-deposit a portion of their salary on a before-tax basis,
providing an essential supplement to their retirement plan and Social Security benefits. You do not pay any federal taxes on the amount you contribute or
on the earnings until the funds are withdrawn (generally upon severance of employment).
SchoolsFirst FCU is proud to be the 457(b) DCP administrator for many eligible school districts.
- Get Retirement Plan Forms
457(b) Plan Features
Eligibility Requirements
- Immediate eligibility for all full-time school district employees and part-time employees working at least 20 hours per week
- Must be a Member of the credit union prior to signing up for insured Share Certificates; Members and non-members can participate in uninsured investment options. (restrictions apply)
Plan Contribution Limits
- 2009—100% of Adjusted Gross Income or $16,500, whichever is less
- Catch-up contribution for age 50 or older is $5,500 for 2009*
- Up to $33,000 (2 x $16,500) for three consecutive years if you are within three years of normal retirement age. This option is available for employees who, in previous years, have not deferred or have deferred less than the maximum allowed to the 457(b) plan.
Distribution Events
- Severance of employment
- Unforeseeable emergency, disability, or death
Mandatory Distribution Requirements
- Age 70 ˝ or severance of employment, whichever is later
As a SchoolsFirst FCU Member, you can participate in a
complimentary consultation with one of our Retirement Plan Advisors. Our experienced advisors can help you learn more about 457(b) DCPs, evaluate your current investment portfolio, and offer creative investment solutions to help meet your goals, your lifestyle and your family’s budget.
You can
arrange a meeting in person at any branch or discuss your investment needs over the phone by calling 714/258-4000, Monday through Friday from 9 a.m. to 5 p.m.
*Members cannot use both catch-up provisions within the same tax year.
Eligible distributions that are not directly rolled into another eligible retirement plan are subject to a mandatory 20% federal tax withholding.
*Representatives are registered, securities are sold, and investment advisory services are offered through CUNA Brokerage Services, Inc. (CBSI), member
FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) 512-6109. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value, and are not obligations of or guaranteed by SchoolsFirst FCU. CBSI is under contract with SchoolsFirst FCU, through the financial services program, to make securities available to Members.
CUNA Brokerage Services, Inc. is a registered broker/dealer in all fifty states of the United States of America.
