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):

Tax form and calculator


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.

Hand withdrawing money


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.

Hand giving money


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.

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To learn more about the RBFCU Retirement Program and benefits of enrolling, contact us at:

Retirement Calculators

  • What will my income be after I retire?
  • What will my expenses be after I retire?

Retirement FAQs

  • 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.

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 professional. 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