457(b) plans are a tax-deferred compensation plan that look and feel very much like other types of retirement or tax-deferred annuity plans, such as a 403(b), and offer many of the same tax advantages to employees. Just like the 403(b) tax-deferred plan at NMU, employees who participate in a 457(b) plan are able to set aside a portion of their salary with pre-tax dollars.
Participants do not pay any federal income taxes on the amounts contributed, or on any earnings on the amounts contributed, until the funds are withdrawn from the plan.
There are distinct differences between 457(b) plans and 403(b) plans that may appeal to you. For example, contributions and earnings in the 457(b) plan are available for withdrawal, penalty free, upon separation from service, even before age 59-1/2 (except for amounts rolled over to the plan from other plan types). Withdrawals from 403(b) plans are not penalty free if made before age 59-1/2 (age 55 if separated from service)—an penalty of 10% may apply on withdrawals from a 403(b) plan in addition to ordinary income tax.
TIAA-CREF is the plan administrator for the 457(b) at NMU. If you are interested in enrolling, visit www.tiaa-cref.org/nmu, select "enroll now," and then select the 457(b) Deferred Compensation Plan method that you choose (online or paper). Once enrollment is complete, submit a 457(B) Salary Deferral Agreement to the Human Resources office for payroll deductions to begin.