Roth 457(b) Deferred Compensation Plan (DCP)
A Roth 457(b) is a Deferred Compensation Plan (DCP) developed by the IRS to allow employees of educational institutions and certain tax-exempt organizations to save after-tax dollars for retirement. A Roth 457(b) works much like a Roth 403(b) plan in terms of taxes and loans and can offer another way to save for retirement. Some school districts sponsor Roth 457(b) plans in addition to offering a Roth 403(b) plan.
With the RBFCU Freedom Retirement Plan™, you can create a plan you’ll feel confident about. This plan is offered through an exclusive partnership with Nationwide® and is available to employees in school districts and certain tax-exempt organizations served by RBFCU.
What you should know about a Roth 457(b):
Contributions are made to your Roth 457(b) after taxes are taken from your paycheck, allowing your earnings to grow — and withdrawals to be taken — tax-free if the account has been open for at least five years and you are age 59½ or older.
Regardless of age, you may withdraw from your Roth 457(b) when you leave your employer, or in the case of death or unforeseen emergency.
A loan may be taken against your Roth 457(b) funds regardless of your employment status. Repayment terms and interest rates are determined by your investment provider. Certain rules may apply.
RBFCU Freedom Retirement Plan benefits and features
- Exclusive partnership with Nationwide
- Diversified investment options with a variety of investment companies on one platform
- Competitive fixed-rate option
- No front- or back-end sales charges
- No transfer fees
- Available to employees in school districts and certain tax-exempt organizations served by RBFCU
Request a complimentary consultation
To learn more about the RBFCU Retirement Program and benefits of enrolling, contact us at:
Already have an RBFCU Freedom Retirement Plan account?
Log in to Nationwide’s website to manage your RBFCU Freedom Retirement Plan account. Once you log in, you can:
- Update your personal profile and preferences
- View your balance and transaction history
- Access beneficiary information, statements and tax documents
- Use educational tools and calculators
- Research funds and investment options
- Read newsletters about the market, investing and how to better position yourself to help meet your financial goals
- View presentations that can help you make informed decisions about investing and retirement planning
What will my income be after I retire?
What will my expenses be after I retire?
How much can I contribute to a 457(b) plan?
In 2019, you may contribute up to $19,000 to a 457(b). If you are over age 50, you may contribute an additional $6,000 annually. This limit is separate from the 403(b) limit.
Are there any additional contribution catch-up provisions for the 457(b) plan?
Depending on your district plan, you may be able to add an additional $19,000 in addition to the standard limit of $19,000. This cannot be used with the age 50+ catch-up provision. This catch-up is used during your final 3 years before retirement age (deemed as age 62 or 65, depending on your district plan). You must qualify every year through your district’s administrator.
What is the difference between a 457(b) plan and a 403(b) plan?
Both types of plans are tax deferred, but with the 457(b), you may withdraw when you leave your employer, or in the case of death, disability or unforeseen emergency, regardless of your age. Whereas with the 403(b), you can receive your distributions at age 59½, upon severance of employment or become fully disabled.
RBFCU Investments Group LLC is a wholly-owned subsidiary of RBFCU Services LLC. RBFCU Services LLC is affiliated with Randolph-Brooks Federal Credit Union (RBFCU). Securities sold, advisory services offered through CUNA Brokerage Services Inc. (CBSI), member FINRA / SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. FR-2529771.1-0519-0621