457 Retirement Plans

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457 Retirement Plan Overview

What is a 457 Plan?

457 plans are non-qualified, tax-advantaged, deferred compensation retirement plans offered by state, local government and some nonprofit employers. Eligible participants are able to make salary deferral contributions, depositing pre-tax money that is allowed to compound without being taxed until it is withdrawn.

Contribution Limits:

Employees under age 50 are able to contribute the IRS annual limit of $23,000 in 2024.

Employees who will be reaching age 50 or older in a plan year may contribute $30,500 in 2024.

Employees under age 50 will be able to contribute the IRS annual limit of $23,500 in 2025.

Employees who will be reaching age 50 or older in a plan year will be able to contribute $31,000 in 2025.

How do I enroll?

Newton’s 457 administrators are Voya Financial and Mission Square (new name for ICMA –RC). All employees are eligible to enroll as of their first paycheck.

To enroll into the City of Newton’s 457b plan with Mission Square (new name for ICMA-RC):