Two changes are coming to the 457 Deferred Compensation Plan (“457 Plan”). The 457 Plan is one of two voluntary retirement plans offered through official University retirement savings vendor Fidelity.
As of January 1, 2024, you will be able to make Roth contributions to the 457 Plan. This means that you can make post-tax contributions to the plan, which means qualified withdrawals won’t be taxed.
Previously, the 457 Plan only allowed pre-tax contributions, which are taxed when withdrawn from the plan. Roth contributions were previously only available through the Optional Retirement Plan (ORP), another voluntary retirement plan.
The 457 Plan and ORP each offer unique retirement plan features. However, both allow University employees who are paid regularly to save extra for retirement on top of any contributions to the Faculty Retirement Plan (FRP), Minnesota State Retirement System (MSRS) pension plan, or other personal retirement accounts. Compare your voluntary plan options, and make a free appointment to talk with a Fidelity workplace financial consultant if you’d like to discuss your personal situation.
As of February 1, 2024, If you want to add or update your contributions to the 457 Plan, changes will only take 1–2 pay periods to go into effect. Until February 1, contributions will continue to take as long as 3–4 pay periods to go into effect.
You can enroll or make changes in either the 457 Plan or ORP by logging onto NetBenefits® or by calling Fidelity at 800-343-0860.