The 457 plan is a retirement savings plan and investment vehicle with tax-advantages administered by Mission Square. Contributions, either before tax or after-tax, limited by IRS regulations, can be made to your 457 plan during employment and can generally be started, stopped or changed at any time. Earnings on contributions are not subject to taxes until they are withdrawn. Any contributions are invested in mutual funds and the account value is based upon the contributions and subsequent investment returns. Upon separation or retirement, the funds and earnings can be withdrawn regardless of the reason or years of service and there is not a 10% penalty even if you are under 59 and ½. All survivor benefits will be left to a beneficiary or beneficiaries that the employee will designate.
457 Plan Loan
Borrowing from your 457 plan administered through Mission Square is available. IRS regulations allow you to typically borrow up to 50% of your account balance up to $50,000, with a minimum loan amount of $1,000. Loans must be paid back within (5) years by automatic bank account transfer (ACH) and a fixed interest rate is applied to the length of the loan term. There is a one-time loan origination fee to request a loan and on-going annual fees that typically apply.
Payroll Roth IRA
The Payroll IRA is offered through Mission Square where contributions, limited by IRS regulations, can be payroll deducted and used for a variety of savings goals from retirement, education, emergencies and more. The Payroll IRA is a flexible savings vehicle that allows different investment options than the 457 plan, tax-free earnings potential and complements a savings strategy with the 457 plan.
Mission Square Payroll Deduction Form(PDF, 133KB)