Retirement

Voluntary 457(b)

The Â鶹´«Ã½ provides a voluntary, supplemental retirement plan through the Deferred Compensation Plan, also known as a 457(b) account. This account offers executive employees the opportunity to make additional tax-deferred contributions beyond the maximum amounts allowed by the 403(b) and outside their required contributions to their respective retirement plans (either PERS, TRS, or ORP). The 457(b) is available through TIAA only. 

 

Voluntary 457(b) Enrollment​

Executives Contributing the Maximum to the Voluntary 403(b)
The voluntary 457(b) is only available to executive employees who have the intent to contribute the maximum annual amount, including any eligible catch up amounts, to the 403(b). More information on 403(b) can be found on our 403(b) webpage. 

Please note, Â鶹´«Ã½'s 457(b) plan is not the same as the Division of Retirement and Benefit (DRB) deferred compensation plan available in Empower Retirement for PERS and TRS DC members.  Â鶹´«Ã½ opted out of the DRB deferred compensation plan.

Executive employees can open a 457(b) at any time as long as they meet the eligibility requirements. Executives can also change or stop this contribution at any time. 

Executive employees can employee can start, stop, or change their contributions at any time as long as they otherwise meet the eligibility requirements.
Executive employees can employee can start, stop, or change their contributions at any time as long as they otherwise meet the eligibility requirements.
The 457(b) is only available through TIAA.
To update your contribution limit, complete a new  and indicate your new biweekly and yearly goal amount(s). 
The 457(b) allows only pre-tax contributions. 
Coverage and contributions begin when an executive elects to start a voluntary 457(b). Contributions end when the executive stops their contributions, moves into a non-eligible position, or separates from the university. 

 

Voluntary 457(b) Basics

The 457(b) is a voluntary, supplemental account allowing executives to set aside additional pre-tax dollars along with the voluntary 403(b) and their participation in PERS, TRS, or ORP. 
The 457(b) is available through only.
Contact TIAA
It is the employee's responsibility to maintain accurate beneficiary records with TIAA.

 

Voluntary 457(b) Details​

New Accounts - Set Up with TIAA REQUIRED
Employees must have a 457(b) account with TIAA before the first payroll contributions is made toward the account.
There are no employer contributions to any voluntary 457(b) account. 

Contribution Limits set by IRS
Contribution limits are set by the IRS each calendar year. The minium contribution to a 457(b) is $25 per pay period.

For calendar year 2024, the contribution limit is $23,000.
For calendar year 2025, the contribution limit is $23,500.

Catch-up Amounts for 2025

  • If an employee is over the age of 50, they  are eligible to contribute an additional $7,500 catch up amount bringing the total to $31,000.
  • If an employee is between 60-63, they are eligible to contribute an additional $11,250 catch up amount bringing the total to $34,750.

While Â鶹´«Ã½ allows contributions to a 457(b) through payroll deduction, the management of the account lies entirely with the employee - including managing maximum contribution limits according to the IRS.

Employees are 100% vesting in any funds contributed to a voluntary 457(b) account. 

Unforeseeable Emergency
An employee may elect an in-service distribution from their 457(b) account in accordance with Plan Section 4.05(A) (for the Participant, spouse, dependents or beneficiaries). An unforeseeable emergency includes a severe financial hardship resulting from an accident or illness to the employee, spouse, dependent(s) or beneficiaries, a loss of property due to casualty, or other extraordinary and unforeseeable circumstances beyond the employees control. Contact TIAA for more information. 

Qualified Domestic Relations Order (QDRO)
If an employee's voluntary 457(b) account is involved in QDRO, the employee must work with TIAA directly to process the order. 

Market Gain/Loss Income
The voluntary 457(b) is a Defined Contribution (DC) plan. DC plans are account-based plans where the employee contributions are invested into mutual funds or money market funds where they grow tax-deferred until withdrawn. The 457(b) is managed by TIAA.

Â鶹´«Ã½ is Not Authorized
Â鶹´«Ã½ is not authorized to provide financial advice to employees. Please contact TIAA directly to discuss.

Any Age if Separated
Upon termination of all employment, employees may request a lump sum distribution, roll funds over into another qualified plan or IRA, or leave the funds in the 457(b) with TIAA. Contact TIAA to receive paperwork and additional information about managing the account. Special considerations may apply and employees are encouraged to discuss financial assets and retirement plan with a financial planner prior to taking any action on the account. Review the offboarding webpage for up-to-date information. 

Review offboarding webpage
Employees who are separating from the university (but are not retiring) have a few different considerations for their 457(b) accounts including withdrawing funds or leaving them in the account to grow tax-free. Review the offboarding webpage for information on separating from the university. 


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