State of CT Deferred Compensation 457 Plan: How It Works and What It Means for You

The State of CT Deferred Compensation 457 Plan is a valuable benefit for state employees. It allows you to save for retirement on a tax-deferred basis.

You can contribute to the plan on a pre-tax basis, reducing your taxable income for the year. This can be especially helpful during tax season.

The plan is designed to help you build a nest egg for retirement, providing a sense of financial security.

The State of Connecticut's Deferred Compensation 457 Plan is a great option for employees looking to save for retirement. It's a tax-deferred plan, which means you won't have to pay taxes on your contributions until you withdraw the funds.

You can contribute up to $19,500 per year, and if you're 50 or older, you can also make catch-up contributions of up to $6,500. These limits are subject to change, so be sure to check the plan's website or consult with a financial advisor for the most up-to-date information.

Contributions are made pre-tax, which can help reduce your taxable income and lower your tax liability. This can be especially beneficial for high-income earners or those with significant medical expenses.

The 457(b) plan is a supplemental retirement savings program for all employees, including part-time employees of the Town of Greenwich.

You can view your account balance by logging on to the Empower Retirement website or by calling Empower Retirement at 800-701-8255.

Town matching funds may be available for voluntary contributions, but you should check your union's collective bargaining agreement for match information.

Employees can log on to the Empower Retirement website to view their account balance, making it easy to track your progress.

Calling Empower Retirement at 800-701-8255 is also an option for those who prefer to speak with a representative.

Over 57 million private sector workers in the US are unable to save for retirement through their employers. This staggering number highlights the need for alternative solutions.

In Connecticut, over 600,000 private sector employees are without access to an employer-sponsored retirement savings plan.

Employers must enroll eligible employees in automatic enrollment within their first 30 days on the job, ensuring that automatic payroll contributions begin as soon as workers are added.

To participate in Connecticut's state-run MyCTSavings program, you must be at least 19 years old and have been on the job for at least 120 days.

The default savings rate for your MyCTSavings account is 3% of your gross pay, which is the amount you earn before taxes or other deductions are taken out.

You can adjust your savings rate to a higher percentage if you'd like, and you can do so at any time.

To be eligible for the program, you must meet the age and employment requirements, which are 19 years old and 120 days of work, respectively.

The State of CT Deferred Compensation 457 Plan has some key rules to keep in mind.

Contributions can be made through payroll deductions or by submitting a lump sum payment.

You can contribute up to the annual limit, which is $19,500 in 2022, with an additional $6,500 catch-up contribution if you're 50 or older.

The 457 (b) Plan is a supplemental retirement savings program for employees, including part-time employees of the Town of Greenwich.

To view your account balance, you can log on to the Empower Retirement website or call Empower Retirement at 800-701-8255.

Town matching funds may be available for voluntary contributions, but you should consult your union's collective bargaining agreement for match information.

You can participate in the 457(b) plan to make supplemental tax-deferred retirement contributions, and contributions are made by payroll deduction, pre-tax.

Maximum contribution limits are set by the federal government and change annually, so be sure to check the current limits.

Enrollment and payroll deduction arrangements are made directly with the plan administrator, Empower.

As with the 403(b) plan, maximum contribution limits are established annually by the Federal government.

You can make voluntary contributions to tax-deferred annuities through the State 457(b) Deferred Compensation Program.

The Connecticut state retirement mandate was originally passed in 2016 and is sponsored by the State of Connecticut's Retirement Security Program in the Office of the State Comptroller.

Connecticut requires eligible employers with five or more employees, who paid those employees $5,000 or more in taxable wages in the previous calendar year, to offer a retirement savings program.

Businesses with fewer than five employees or those that already provide a work-based retirement savings option are exempt from participating.

Employers may choose an independent retirement plan administrator or participate in Connecticut's state-run retirement plan, MyCTSavings program.

There are no fees or fiduciary responsibilities for employers to offer the plan.