457(b) Deferred Compensation Plan
A 457(b) Deferred Compensation Plan is a supplemental retirement
plan that allows employees to contribute a portion of their pretax salary, within
certain Internal Revenue Service (IRS) limits, to a personal account currently maintained
by ING Life Insurance and Annuity. Employees may select from multiple mutual funds
and a fixed interest account when investing their funds. The County, as Plan Administrator,
regularly monitors the investment options and deletes or replaces funds that fail
to perform according to the guidelines set forth in the County of San Bernardino
Investment Policy and Procedures Statement. For detailed information, refer to the
457(b) Deferred Compensation Plan.
General employees in regular positions, and other employees that
are granted this benefit through an employment contract or Exempt Compensation Plan,
are eligible to participate. Employees may enroll at any time.
Participating employees may be eligible to receive a County contribution subject
to the maximum amounts specified in your Memorandum of Understanding (MOU), Exempt
Compensation Plan, salary ordinance or contract.
Taxed Upon Receipt
Contributions to this account and any earnings that accumulate
are not taxed until the funds are received. The IRS does impose restrictions on
when these funds can be accessed. Upon complete separation from County service,
participants may choose to withdraw a portion or all of their 457(b) account balance
and will only pay the Federal and State taxes on the amount withdrawn. Unlike most
401(k) plans, there is no penalty for withdrawals made from a 457(b) Plan prior
to the participant’s attainment of age 59½.
In-service distributions are limited to loans and hardship withdrawals.
Both options are subject to several restrictions. Employees should make themselves
familiar with the loan and hardship provisions in the 457(b) Plan document before
participating in the plan.
How to Get in Touch with ING:
Contact ING at (909) 748-6468 or visit the ING website at www.ingretirementplans.com