457(b) plan

Take advantage today

Who can participate? 

All full-time, part-time or temporary non-student employees can participate in the 457(b) retirement savings plan. Your plan allows you to make pretax contributions or after-tax Roth contributions up to the maximum allowed by the Internal Revenue Service. You may begin contributing to the plan immediately. 

If you have an existing qualified retirement plan (pretax) or deferred compensation plan account with a prior employer, you can transfer or roll over that account into the plan on becoming a participant in the plan.

Can I stop or change my contributions?

You may stop your contributions by giving notice to your employer prior to the beginning of the month for which the cessation of contributions is to be effective. Once you discontinue contributions, you may start again the month following the month that you submit a new agreement. 

You can increase or decrease the amount of your contributions by giving notice to your employer prior to the beginning of the month for which the change is to be effective.

How do I become "vested" in my plan account?

Vesting is a participant’s right of ownership to the money in his or her plan account. You are always 100% vested in employee contributions, and rollover contributions, plus any earnings they generate.

Starting early has its advantages

How do I contribute to the plan?

Through payroll deduction, your plan allows you to make pretax contributions or after-tax Roth contributions up to the maximum allowed by the Internal Revenue Service. Special catch-up provision may also be available. Talk to your financial professional for more information. 

Accessing your money before retirement

When can money be withdrawn from my plan account?

Money may be withdrawn from the plan in these events:

• Severance from employment

• Retirement

• Unforeseeable emergency. If you have an immediate financial need created by severe hardship and you lack other reasonably available resources to meet that need, you may be eligible to receive an emergency distribution.  If you feel you are facing a financial hardship, you should see your financial professional for more details.

• Taking the Required Minimum Distributions when required by law

Income taxes are payable upon withdrawal and federal restrictions. Be sure to talk with your tax advisor before withdrawing any money from your plan account. 

Please be advised that in addition to the Corebridge Retirement Services Paperwork, Auburn University requires you to complete and submit the Distribution Acknowledgement Form to the Benefits Office. This form can be downloaded by clicking the “Prospectuses and other material” link. Failure to submit the Distribution Acknowledgement Form could delay your distribution request.

Can I borrow money from my account?

The plan is intended to help you put aside money for your retirement. However, Auburn University has included a plan feature that enables you to access money from the plan.

• The amount the plan can loan to you is limited by rules under the tax law. All loans will be limited to the lesser of: one-half of your vested account balance or $50,000.

• The minimum loan amount is $1,000.

• All loans must generally be repaid within five years.

• You can have one loan outstanding at a time.

• You pay interest back to your account. The interest rate on your loan will be the Prime Rate plus 1%.

• A $50 processing fee for all new loans and a $50 per year loan maintenance fee are charged to your account.

Unpaid loan amounts will be taxed as ordinary income. Other requirements and limits must be met prior to borrowing money from your account. For additional information regarding loans, please see your financial professional.