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You may participate in the 457(b) plan by entering into a deferred compensation agreement with your Employer.

Starting early has its advantages

Contributions

SECURE Act 2.0 of 2022 changed the timing of deferral elections for governmental 457(b) plans. You may now elect to defer a portion of your compensation any time prior to the date compensation becomes available. The maximum amount you are allowed to contribute to your 457(b) plan is based on your taxable compensation as defined by the Internal Revenue Code.

Generally, you can contribute up to 100% of your salary on a pretax basis, up to the maximum IRS contribution limit. Special catch-up provisions may also be available. Talk to your financial professional for more information.

2025 contribution limit

Your contribution limit for 2025 is $23,500.

Catch-up contributions

You might be eligible to contribute additional catch-up contributions if you meet the following conditions: 

2025 catch-up contributions

> $23,500 if you have undercontributed in prior years and are within the last three taxable years before ending the year before the year you attain normal retirement age as specified under the plan, or

> $7,500 if you are age 50 or older

If you are eligible for both, you cannot combine the two catch-up amounts, but may contribute up to the higher amount. Please consult a tax professional to determine which catch-up contribution option would work best for your financial situation.

Can I stop or change my contributions?

You may stop, increase or decrease your contributions by giving notice to your employer. Your employer will change your contribution election as soon as administratively feasible after receiving your request. 401k and 403b plans allow participants to start and stop as they wish; that is now the same for 457b governmental plans.

Vesting

You are always 100% vested in your own contributions.

Accessing your money before retirement

Withdrawals

Your plan was established to encourage long-term savings.

A 457(b) plan has more stringent withdrawal restrictions while you are employed, but less stringent rules after you separate from service and distributions are not subject to a 10% federal early withdrawal penalty except on amounts rolled over from other non-457(b) eligible retirement plans.

Below are the distribution events for your 457(b) plan. Generally, you can withdraw the value of your vested account balance in the following circumstances:

  • Attaining age 59½

  • Retirement or separation from service

  • Your death

  • Unforeseeable emergencies


Bear in mind that income taxes are payable upon withdrawal.

In addition, the Internal Revenue Service (IRS) requires you to take Required Minimum Distribution (RMD) withdrawals from your retirement account(s) annually beginning the year you reach the RMD eligible age. RMD eligible age is:

  • Age 73 if you were born January 1, 1951, or later (The RMD eligible age will increase to age 75 after December 31, 2032)
  • Age 72 if you were born after June 30, 1949, and before January 1, 1951 (For individuals turning age 72 in 2023, no RMD payment is required in 2023)
  • Age 70 ½ if you were born before July 1, 1949.

Distribution options

Corebridge offers many distribution options, allowing you to tailor your benefits to meet our individual needs. Depending on your employer’s plan provisions, your withdrawal options include:

  • Transferring or rolling over your vested account balance to another tax-advantaged plan that accepts rollovers
  • Receiving systematic withdrawals
  • Taking a lump-sum distribution
  • Choosing one of the many annuity options available
  • Taking the Required Minimum Distributions when required by law.

Generally, income taxes must be paid on all amounts you withdraw from your plan. A 10% federal early withdrawal penalty may apply to distributions taken prior to attainment of age 59½ from accounts other than those in the 457(b) plan.

Consult your financial professional for more specific information.

Important considerations before deciding to move funds either into or out of a Corebridge Retirement Services account
There are many things to consider. For starters, you will want to carefully review and compare your existing account and the new account, including: fees and charges; guarantees and benefits; and, any limitations under either of the accounts. Also, you will want to know whether a surrender of your current account could result in charges. Your financial professional can help you review these and other important considerations. Consult a tax professional before making a decision to move funds either into or out of a Corebridge account.

Loans

Tax-free loans make it possible for you to access your account subject to certain limitations without permanently reducing your account balance. Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal early withdrawal penalty if you are under age 59½. The federal early withdrawal penalty does not apply to 457(b) plan accounts.

RO 2933713 (06/2023)