457(b) Plan
The IRS allows full- and part-time employees of DPS to save for retirement and reduce their current income taxes. You may defer a portion of your salary on a pre-tax basis and place it in a 457(b) Deferred Compensation Plan. DPS will deduct the amount you authorize and send it to Great West Retirement Services where it is invested on a tax-deferred basis.
In 2008, employees can contribute to the IRS $15,500 maximum. Employees who are over age 50 or will 50 in 2008 calendar year can contribute another $5,000 to the plan. Employees are eligible enroll in both the 403(b) and 457(b) plans to save twice the amount of the IRS limit.
One of the main differences between the 403(b) and the 457(b) is that the 457(b) has no early withdrawal penalty of 10% if an employee takes a distribution before age 59. Distributions are subject to ordinary income tax.
It is very important that you read all the material you will receive about deferred compensation plans before choosing to participate. You should consult a tax or financial advisor for further information and advice about your personal financial situation.
Go to http://greatwest.acrobat.com/enrollment457/ to hear more on Great West 457(b) program and how to enroll.