Retirement Plans

457

A 457 plan is a supplemental retirement savings program that allows participants to make contributions on a pre-tax basis. 457 plans are designed for state and municipal employees and employees of some tax-exempt organizations. Like other tax-deferred accounts, 457 plans permit participants to reduce current income taxes while saving for retirement, earnings accumulate tax-deferred and, depending on your age, "catch up" contributions are allowed. Unlike most "retirement" plans, however, 457 plans have no 10% penalty for withdrawal before the age of 59-1/2 although withdrawals are subject to ordinary income taxation.

Some employers permit contributions to be made to both a 403(b) plan and a 457 plan. Like 403(b) plans, 457 plans have contribution limits that may be impacted by how much a participant is contributing to each plan. Contact your employer to find out what these are.

Interested in participating in a 457 plan? It's easy to do so. First, check with your employer to see if they sponsor a 457 plan and that they have selected MCA as one of the permitted investment providers under the plan. If your employer has 457 plan and you want to enroll and select one of MCA investment alternatives, click on the Current or New Participants link here and follow the prompts. You can also review available MCA investment alternatives by clicking the Investment Options link here.

Visit Midwest Capital Advisors at 2my403b.com for more information.