Office of Human Resources - Benefits Design & Management

Deferred Compensation (457)

This is a voluntary tax-favored program that allows employees to defer a portion of salary, before federal and state taxes are taken, into a supplemental retirement account with Nationwide Retirement Solutions. Internal Revenue Code Section 457 provides this tax-deferred program exclusively for public employees.

The annual contribution limits are 100% of your compensation to the following maximums:

  • If you are age 49 or younger you can contribute $15,500 in 2007 and in 2008.
  • If you are age 50 or older you can contribute $20,500 in 2007 and in 2008.
  • As an alternative to the age catch-up, a 457 plan participant is eligible to defer up to twice the contribution limit in effect for the three years preceding the employee's normal retirement age.

Employees can make contributions to a 403(b) program and the 457, putting up to the maximum dollar amount into each account.

Starting contributions to a new account:

  • Contact Nationwide at 1.800.796.9753 to establish account and designate amount you wish to contribute each pay period.

Increasing and decreasing contributions:

Stopping contribution:

  • Contact Nationwide at 1.800.796.9753

Resuming contribution:

  • Contact Nationwide at 1.800.796.9753

You may withdraw funds when you: 1) separate from service according to the plan, at any age, for any reason, 2) experience an approved, unforeseeable emergency, or 3) you can withdraw $5,000 or less as long as you have not made deferrals for two years and no prior withdrawals have been made.

For additional information contact Nationwide's local representative Wade Sundermann at 602.266.2733, ext. 26 or toll-free at 1.800.796.9753. Walk-in service is available at 4747 N 7th Street, Suite 418, Phoenix, AZ 85014 (8 a.m. to 5 p.m. MST).