
A Virginia Retirement Plan 457 is a type of supplemental retirement savings plan designed for state and local government employees in Virginia. It's a great way to save for retirement, especially for those who may not have access to a 401(k) or 403(b) plan.
The plan is administered by the Virginia Retirement System, which offers a range of investment options to help participants grow their retirement savings. Contributions are made on a pre-tax basis, reducing taxable income and lowering federal income taxes.
One of the key benefits of a Virginia Retirement Plan 457 is that it allows participants to save up to $19,500 per year, with an additional $6,500 catch-up contribution allowed for those 50 and older. This can add up quickly, especially over a long period of time.
Enrollment and Administration
Most eligible employees can enroll online after registering their DCP Account. You'll receive a welcome letter once your account has been established, allowing you to manage your account online.
Salaried state employees not covered by the Hybrid Retirement Plan will be automatically enrolled in the plan 90 days after their hire date at a $20.00 before-tax contribution rate.
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How to Enroll

Enrolling in the DCP account is a straightforward process. Most eligible employees can do it online after registering their account.
To enroll online, visit dcp.varetire.org/login. You'll be able to manage your account once it's established.
Wage or part-time employees who aren't covered by VRS need to use the Wage Enrollment Form. Submit it for processing as indicated on the form.
Salaried state employees not covered by the Hybrid Retirement Plan will be automatically enrolled in the plan 90 days after their hire date. They'll contribute $20.00 before-tax per month, which will be invested in an age-appropriate Target Date Portfolio.
You can change how much you contribute and how your contributions are invested at any time.
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Statements and Confirmations
You can access your account statements at any time by logging in to your Commonwealth of Virginia 457 Plan Account at dcp.varetire.org/login and selecting Statements and Documents.
Quarterly account statements are generated and posted to your online account and Voya Retire mobile app, and you'll receive an email notification when they're available.
If you prefer to receive statements via U.S. mail or don't have an email on file, you'll receive them by mail instead.
You can view your account statements in a way that makes sense to you, by entering a specific date range and generating a statement view for that period.
Any time you make a transaction, a confirmation statement is generated and posted to your online account/Voya Retire mobile app.
If you prefer to receive confirmation statements via U.S. mail or don't have an email on file, you'll receive them by mail instead.
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457 Information Sessions
457 Information Sessions are a great resource for learning more about your retirement plans.
Each month, VRS Education Specialists conduct online Regional Meetings that cover three key topics: an overview of the Commonwealth of Virginia 457 Deferred Compensation and Virginia Cash Match Plans, investment diversification and pathways, and distribution requirements and options when separating from service.
These online meetings are a convenient way to stay informed about your retirement plans, and you can even register for a one-on-one virtual meeting with a Defined Contribution Plans Retirement Specialist.
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The VRS 457 and Cash Match Plans Overview is a great place to start if you're new to these plans. You'll learn about how they help you build your retirement future and what they're all about.
If you find investing confusing, don't worry – you're not alone! You can learn about asset classes, diversification, and the three investment paths available to you.
Here are the three topics covered in the online Regional Meetings:
- An overview of the Commonwealth of Virginia 457 Deferred Compensation and Virginia Cash Match Plans
- Investment diversification and pathways
- Distribution requirements and options when separating from service
Take advantage of these information sessions to get a better understanding of your retirement plans and make informed decisions about your future.
Plan
A 457 plan is a retirement plan that allows public employees to set aside money for retirement from every paycheck. It's a great way to save for the future.
You can defer compensation into the plan on a before-tax basis, which means you won't pay taxes on the money until you withdraw it in retirement. This can be a big advantage, especially if you're in a high tax bracket now and expect to be in a lower tax bracket in retirement.
The plan is designed specifically for public employees, so it's a good fit for those working in government or certain non-profit organizations.
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Frequently Asked Questions
What is a 457 plan and how does it work?
A 457 plan is a tax-deferred retirement savings plan that allows you to save for the future while delaying taxes until withdrawal. By contributing pre-tax dollars, your savings can grow over time, reducing your taxable income and increasing your retirement nest egg.
What is the difference between a 401k and a 457 plan?
Differences between 401(k) and 457 plans include the availability of a 3-year Pre-Retirement Catch-Up and early withdrawal penalties. 401(k) plans have a 10% penalty for early withdrawals before age 59½, while 457 plans do not
What are the downsides of a 457 plan?
Be aware of potential downsides, including the risk of double taxation and loan repayments made with after-tax dollars, which can lead to additional tax liabilities
Sources
- https://www.varetirement.org/dcp.html
- https://www.varetirement.org/dcp/plan-info.html
- https://www.norfolk.gov/5557/Deferred-Compensation-Plans-MissionSquar
- https://www.varetire.org/benefits-and-programs/benefits/severance-benefits/tbp/
- https://www.radford.edu/human-resources/benefits-wellness/retirement.html
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