457(b) Plan With Nationwide
This is a retirement savings plan administered by Nationwide Retirement Solutions that allows you to put aside as much as $19,000 annually if you are under the age of 50, or $25,000 if you are over age 50 on a pretax basis.
For 457(b) Deferred Compensation Plans
When you choose to make Roth 457(b) contributions, you will pay taxes upfront when your money goes into the plan. Then you’ll enjoy tax-free withdrawals – as long as you’re at least 59½, and do not take withdrawals from your Roth account for at least five years after your first Roth contribution is made to the plan. You can see the possible tax advantages of making after-tax contributions to your plan by using the Roth Analyzer, which will provide you with a detailed summary based on your answers.
Supplemental Retirement Savings Plan
The SRSP is a supplemental defined contribution plan qualified under Section 401(a) of the Internal Revenue Code established by ASRS. Eligibility is limited to those employees who meet the criteria for ASRS membership and who are at least 40 years of age.
Contributions made under 401(a) do not reduce the amounts you can contribute to the 457(b) plan. For 2019, employees may contribute up to 100% of pay or $56,000, whichever is lower.
The IRS places restrictions on employee contributions – specifically, employees make a one-time irrevocable election (i.e., the amount of the initial election cannot be changed). In addition:
- The contributions are not included in the employee’s gross income until distribution from the Plan.
- The decision to participate in the SRSP must be made within two years of eligibility date or the employee will be deemed to have irrevocably declined to be a member of the Plan.
Money That Is Yours
Employee contributions are fully vested immediately (meaning your money is 100% yours as soon as it is deposited) and cannot be withdrawn prior to termination of employment. Nationwide provides administration of the 401(a) plan and investment options. Contact Nationwide Retirement Solutions for more information or visit www.azsrsp.com.