Employer-Sponsored Plans

457(b) Deferred Compensation Plans

Eligible for government employers. These plans are a valuable employee benefit that allows tax-deferred savings for retirement. First year implementation is free

We work with dozens of local governments, police & fire districts, public libraries, and school corporations across the state of Indiana.

FAQs

What are the withdrawal rules?

On a 457(b) plans, there is never a 10% penalty like there may be in an IRA or 401(k). The money is eligible for withdrawal upon separation of service, or attainment of age 59 and a half, whichever comes first. Other ways to get to the money include hardships and loans. These are rules of thumb, and rules differ based on your 457(b) plans documents.

How do 457(b) plans differ from 401(k) plans.

Only governmental entities are eligible for 457 plans, while 401k plans are for for-profit companies. 457 plans enjoy benefits that 401k plans do not have. For example, 457 plans are liquid after separation of service, while 401k plan money is not liquid until attainment of age 59 and a half. Many of the differences in these plans lie in the administration of the plans, and they are for similar for the participants.

What is the purpose of a 457(b) plan?

Because the majority of participants in a 457 plan have a pension, the purpose of the 457 is to bridge the gap between your current income is, and what your pension income will be. Schedule an appointment below to learn how a 457 fits into your retirement.

What should I do with my 457(b) plans when I retire?

Since the 457(b) plan is still subject to employer rules, it often makes sense to rollover the 457 plan into an IRA. This way, access to the money is less restricted and you are not subject to fees associated with the 457. If you is something you’d like to do, please schedule an appointment below!

401(k) Plans

Are you a business owner wanting to maximize retirement savings and retain key talent? Is your current plan too time consuming? Would you like to stop paying for an audit every year?

If so, this could be the perfect plan for you. 401(k) plans are an employer-sponsored retirement plan eligible for private employers. We work with business to take all fiduciary responsibility and regulatory headache away so you can do what you do best.

FAQs

What should I do with my 401(k) after retirement?

A 401(k) should be rolled into an IRA or another similar individual retirement vehicle because a 401(k) is subject to the rules of the employer, and they must sign off on any changes. If this is something you would like to do, create an appointment below!

What employers are eligible for 401(k) plans?

Domestic for-profit businesses are eligible for 401(k) plans. Plan design varies greatly based on each employer’s needs and purpose for the plan.

What are withdrawal rules?

All money is eligible for withdrawal after age 59 and a half. All withdrawals prior to this are subject to a 10% fee along with applicable taxes.

403(b) Plans

A 403(b) plan is a tax-advantaged retirement plan available to employees of certain tax-exempt organizations, such as schools and nonprofit organizations. Contributions to a 403(b) plan are made on a pre-tax basis, allowing employees to save for retirement while potentially lowering their taxable income. These plans often offer a variety of investment options, such as mutual funds or annuities, to help employees grow their retirement savings over time.

 FAQs

  • Public schools, hospitals, and certain tax-exempt organizations are eligible.

  • For participants, both plans are very similar. Most differences are concerned with regulation and administration of the plan. For example, 401(k) plans are governed by ERISA, the Employee Retirement Income Security Act, while 403(b) generally are not.

  • Withdrawal rules for 403b plans are very similar to the withdrawal rules for 401k plans. While it depends on the specific plans documents, there is generally a 10% penalty for early withdrawal, and the money does not become liquid until attainment of age 59 and a half.

  • A 401(k) should be rolled into an IRA or another similar individual retirement vehicle because a 401(k) is subject to the rules of the employer, and they must sign off on any changes. If this is something you would like to do, create an appointment below!