All District government employees are eligible to participate in the Deferred Compensation Program, an optional savings program that allows employees to tax-defer income and invest for the future. The portion of salary an employee contributes reduces the amount of taxable income in each paycheck.
The Internal Revenue Service determines the annual maximum amount that can be deferred. In 2007 and beyond, the maximum will be indexed annually for cost of living increases in $500 amounts.
You may also be eligible for increased annual contributions:
- during the three years prior to the year you attain Normal Retirement Age under a special 457 catch-up provision; or
- when you reach age 50 or older by the end of the calendar year.
The 457(b) Deferred Compensation Plan is available through ING Financial Advisors and is open to all employees who can contribute the minimum of $20 per pay period. Employees can choose from a wide variety of fixed or variable investment options.