Click here to sign up for city emergency alerts - including community event alerts, Fire Department notifications, law enforcement alerts, general information alerts, and public works notifications

Please be advised that City Hall offices will be closed on Wednesday, December 25th, in celebration if the Christmas holiday

IRC 457(b) Deferred Compensation Plans

Plans of deferred compensation described in IRC section 457 are available for certain state and local governments and non-governmental entities tax-exempt under IRC 501. They can be either eligible plans under IRC 457(b) or ineligible plans under IRC 457(f). Plans eligible under 457(b) allow employees of sponsoring organizations to defer income taxation on retirement savings into future years. Ineligible plans may trigger different tax treatment under IRC 457(f).

Who can establish a 457(b) plan?

The organization must be a state or local government or a tax-exempt organization under IRC 501(c).

How do 457(b) plans work?

Employers or employees through salary reductions contribute up to the IRC 402(g) limit ($17,500 in 2014 and $18,000 for 2015) on behalf of participants under the plan.

What are the advantages of participating in a 457(b) plan?

There are significant tax advantages for participants in a 457(b) plan:

  • Contributions to a 457(b) plan are tax-deferred.
  • Earnings on the retirement money are tax-deferred.

Can a 457(b) plan include designated Roth accounts?

A governmental 457(b) plan may be amended to allow designated Roth contributions and in-plan rollovers to designated Roth accounts starting 2011.

IRS Announces 2015 Pension Plan Limitations; Taxpayers May Contribute up to $18,000 to their plans in 2015

WASHINGTON — The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2015.  Many of the pension plan limitations will change for 2015 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment.  However, other limitations will remain unchanged because the increase in the index did not meet the statutory thresholds that trigger their adjustment.  Highlights include the following:

  • The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $17,500 to $18,000.
  • The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $5,500 to $6,000.

 

Great-West (State Plan 457) MassMutual 457

MassMutual 457 FICA

(Part-Time Employees Only)

MassMutual 403B

(School Department Only)
Enrollment Form 457 Enrollment Form 457 FICA Enrollment Form 403b Salary Deferral Agreement
Beneficiary Designation Form 457 Beneficiary Designation Withdrawal Request Form 403b Beneficiary Designation
Paycheck Contribution Election 457 Contribution Change Form   403b Contribution Change Form
Catch-Up Form Catch-Up Form   15 Year Rule Form
Withdrawal Request  

 

Close window