There are two types of contributions you may make to your Commonwealth of Virginia 457 Plan:
- Pre-tax contributions: You pay taxes on these contributions later, which lowers your taxable income now.
- Roth (after-tax) contributions: You pay taxes on these contributions now and make tax-free withdrawals later, as long as certain criteria are met.
The minimum amount you can contribute is $10 per pay period. The maximum you can contribute is up to 100 percent of includible compensation or the maximum listed in the table below, whichever is less.
|457 Deferred Compensation Plan
|Annual deferral limit for participants younger than age 50*||$23,000||$22,500|
|Standard Catch-Up (not to exceed participant's catch-up credit)||$23,000
|Age 50+ Catch-Up Limit||$7,500
*The annual limit includes any voluntary contributions that Hybrid Retirement Plan members make to the Hybrid 457 Deferred Compensation Plan and another supplemental 457 plan. Any Roth after-tax or pre-tax contributions made to the Commonwealth of Virginia 457 Deferred Compensation Plan also count towards the limit.
SmartStep makes it easier for you to save with small annual increases to your contribution amount. Your contribution will increase gradually by the dollar amount you choose, with less impact to your paycheck. Once you choose SmartStep, you will not have to log in to increase your contribution amount each year. SmartStep automatically does it for you!
Here's how it works:
- To select SmartStep, log in to Account Access or call Participant Services at 877-327-5261 (select option 1).
- Choose an annual increase dollar amount and which month the increase will occur.
- SmartStep will increase your contribution dollar amount each year until you reach the maximum annual plan limit!
Age 50+ Catch-Up
If you are age 50 or older during the calendar year, you may contribute an additional amount over the regular IRS annual contribution limit to the 457 Plan. You cannot use the Age 50+ Catch-Up and the Standard Catch-Up in the same calendar year.
Standard Catch Up
During each of the three calendar years before normal retirement age, Commonwealth of Virginia 457 Deferred Compensation Plan participants may contribute up to twice the regular IRS annual contribution limit or the regular annual limit plus the amount of their Standard Catch-Up credit, whichever is less. The Standard Catch-Up credit is the amount participants were eligible to contribute but did not contribute in previous years. You can use the Standard Catch-Up Application to determine your credit amount or by calling toll-free 877-327-5261 for assistance.
Military Leave Make-Up
Participants who leave their positions for military service will not be able to contribute to the 457 Plan, unless they continue to receive compensation from a covered position. If you return to salaried or wage employment with an employer that offers the plan and meet the requirements of the Uniformed Services and Re-employment Rights Act of 1994 (USERRA), you may contribute the amount of deferrals you were unable to make during your period of military leave. If applicable, you also will receive the employer cash match on these make-up contributions.
Guidance on How to Change Contributions
To increase Commonwealth of Virginia 457 Deferred Compensation Plan contributions, log in to your online account or call toll-free 877-327-5261.
Participants are able to contribute compensation from unused vacation, sick leave or other compensation such as bonuses. To make these types of contributions to the plan, complete the Payroll Authorization-One-Time Deferral Form . You must give the completed form to your employer while you are still employed and no later than the month before the month in which you would otherwise receive the payment. Any one-time deferrals you make to the plan count toward the contribution limit for the year in which the deferral is posted to your plan account.
The plan offers a variety of investment options-from pre-mixed target date portfolios to a menu of options across asset classes-to construct your investment portfolio. Additionally, the plan offers a Self-Directed Brokerage Account (SDBA) for an additional fee. Publicly traded mutual funds, exchange-traded funds (ETFs) and individual securities are offered through the SDBA. You must have $2,500 in the core investments before investing in the SDBA.
Investment options are available online or by calling toll-free 877-327-5261. If you have any questions about your brokerage account, please contact Charles Schwab at 1-888-393-7272, Monday through Friday, 8 am to 7:30 pm, excluding market holidays. Please consider the investment objectives, risks, fees and expenses carefully before investing.
Charles Schwab & Co., Inc. and MissionSquare Retirement are not affiliated and are not responsible for the products and services provided by the other. Schwab Personal Choice Retirement Account® (PCRA) is offered through Charles Schwab & Co., Inc. (Member SIPC), the registered broker/dealer, which also provides other brokerage and custody services to its customers.
Investment Option Changes
You can make changes to your account online or by calling toll-free 877-327-5261 to:
- Move all or a portion of your existing balances between investment options (subject to Plan rules)
- Change how your future contributions are invested