A 457(b) deferred compensation plan is a retirement plan offered by Cook County, allowing county employees like you to put aside money from each paycheck toward retirement. Your deferred compensation plan can help bridge the gap between what you have in your pension and Social Security (if applicable), and how much you’ll need in retirement.
Here are some frequently asked questions about deferred comp plans:
- What sets a 457(b) apart from other retirement plans? A 457(b) may offer benefits other retirement plans can’t, like penalty-free withdrawals once you stop working for Cook County
- What does tax-deferred mean? Basically, you don’t pay income taxes on your deferred comp plan contributions or earnings until you retire and/or begin to take payments from your account. This may lower your taxable income now and in retirement
- Can I combine retirement accounts? Our Retirement Specialists will work with you to combine or consolidate your eligible retirement accounts into your Cook County Deferred Compensation account. This may make managing your retirement investments a little easier. Qualified retirement plans, deferred compensation plans and individual retirement accounts are all different, including fees and when you can access funds. Assets rolled over from your account(s) may be subject to surrender charges, other fees and/or an additional 10% early withdrawal tax if withdrawn before age 59½
- How much can I put into a 457 plan? Check out the current contribution limits.