Public Sector - 457 & 401(a)
Public Sector - 457 & 401(a)
Public Sector - 457, 401(a) and Beyond...
457 Plan – A non-qualified, deferred compensation plan. Employer-sponsored retirement savings plan, usually offered by municipalities and governmental entities, which allow employees to defer a portion of their current compensation for payment at a later date, generally retirement. Salary deferrals (or contributions) are voluntary, and are made through the ease of payroll deduction. Under this plan, contributions and earnings accumulate tax-deferred and withdrawals are taxed as ordinary income. This plan offers an important supplement to pension plans and/or Social Security.
401(a) Plan - A money-purchase retirement savings plan that is set up by an employer. The 401(a) plan allows for contributions by the employee, the employer, or both. Contribution amounts, whether dollar-based or percentage-based, eligibility, and vesting schedule are all determined by the sponsoring employer. Funds are withdrawn from a 401(a) plan through lump-sum payment, rollovers to another qualified plan, or through an annuity. A 401(a) plan does not affect a participant’s 457 Deferred Compensation plan or the amounts that can be contributed to it.
Plan Sponsor Services Include:
- Plan Design Assistance
- Investment Menu Review & Analysis
- Plan & Vendor Benchmarking
- Assistance with Custom Investment Policy Statement (IPS) Design & Review
- Fee Review, Analysis & Negotiation
- ERISA Compliance Reviews Assistance
- Plan Document Services
- Vendor Management & Negotiation
- Plan Committee Education
- Independent Objective Investment Advice
- On-site Employee Education & Enrollment Services
- Plan Conversion Assistance
- Competitive Pricing & Comparisons
** Additional customized options may include:
- Self-Directed Brokerage Accounts
- Open Architecture Investment Offerings
Participant Services for Include:
- Comprehensive Investment Menus
- Tax-deferred Retirement Savings
- Competitive Pricing
- Retirement Counseling
- Independent Objective Investment Guidance
- Managed Account Services
- On-Site Services