457(B) SAVINGS PLAN
A Section 457(b) plan is a special type of employer-sponsored retirement plan that certain governmental employers, and other tax-exempt organizations can establish for their employees. Your employer offers the RAMS 457(b) plan as a way to help you save for life beyond your full-time working years. Contributing regularly to a 457(b) can help give you the power and confidence to retire with more in your pocket to cover housing, health care, vacations, bills, and other expenses upon retirement.
2024 Contribution Limits
You can contribute 100% of your compensation, up to $23,000, whichever is less. If you are 50 or older, you can contribute up to an additional $7,500 for a total of $30,500. You can contribute to both 403(b) and 457(b) plans simultaneously.
RAMS 457(b) Plan Highlights
- Oversight by Superintendents, HR Directors, and Chief Financial Officers—bringing peace of mind public employee interests are represente
- Low, transparent fees
- Wide range of investments to choose from including managed portfolios, target date funds, and self-directed options
- No 10% early distribution tax/penalty No surrender charges or hidden fees
- No product commissions
- Full control on starting/pausing contributions
- Access to financial education through FinPath Wellness, including 1:1 financial coaching, online financial health tools and monthly opportunities to win prizes*†
- Access to no-cost W-2 tax preparation and complimentary creation of a personal will†
457(b) FICA Alternative Plan and Trust
Eligibility: An employee is required to participate in the FICA Alternative Plan if they meet one of the eligibility requirements listed below.
• Part-time (20 hours or less per week)
• Seasonal (five months or less per year)
• Temporary (contract of two years or less in duration)
• Not covered by TRS in a position otherwise covered by TRS
Contributions: Social Security requires that the equivalent of 12.4% of an employee’s salary be contributed each month (6.2% employee, 6.2% employer). However, the FICA Alternative Plan requires only a 7.5% contribution to a retirement account. The deferrals are made on a “pretax” basis, unlike Social Security, which are made on an “after-tax” basis.
