Qualified distributions from a Roth account are tax-free. Generally, a qualified Roth distribution is a distribution that (1) is withdrawn after the end of the five-year period beginning with the first year in which a Roth contribution was made to the plan, and (2) is after age 59½, death, or disability.
457(b) Deferred Compensation Plan
Welcome to your Gwinnett County Public Schools 457(b) Deferred Compensation Plan (DCP). View the features and highlights of your employer’s retirement plan below.
The plan highlights are only a brief overview of the plan's features and are not legally binding documents. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.
Take advantage today
For the 457(b) DCP, you generally must enroll before the beginning of the month in which you want to begin contributions, or — if you’re a new employee — on the first day of employment.
In addition to the 457(b) plan, Gwinnett County Public Schools Retirement Savings Plans also sponsor a 403(b) plan. Regardless of when you were hired, you can contribute to either or both plans. Contributing to both retirement savings plans allows you to save even more for retirement, tax deferred.
Pretax or Roth contributions
You also have a choice regarding your contributions to your 457(b) DCP plan or 403(b) plan. You can direct all of your contributions to a traditional pretax account, to a Roth account or to a combination of the two. Contributions to a Roth account are after-tax. Regardless of your election, you are subject to the annual contribution limits detailed below.
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.
Catch-up contributions
You might be eligible to contribute additional catch-up contributions if you meet the following conditions:
Vesting
Vesting refers to your ownership of money in your retirement savings plan account. You are always 100% vested in your own contributions, plus rollover contributions, and any earnings they generate.
Accessing your money before retirement
Withdrawals
Generally, you can withdraw your account balance if any of these events apply:
- Your retirement
- Your death
- Severance from employment
- Unforeseeable emergencies
Remember that income tax is due upon withdrawal, and withdrawals from your 403(b) account prior to age 59½ are subject to federal restrictions and may be subject to a 10% federal early withdrawal tax penalty.
The 10% penalty also applies to the amounts rolled over to the 457(b) plan from non-457(b) eligible retirement plans.
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.
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.
An array of investment choices
Performance
The mutual funds available in your Gwinnett County Public Schools 457(b) Retirement Savings Plan will provide you with the flexibility you need to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.
- FOR 457(b) PLAN: View the entire list of funds and performance.
To view or print a prospectus, access “Prospectuses and Other Important Materials”. The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1.800.428.2542.
RO 2933713 (06/2023)