More About Deferred Compensation
The King County Employees Deferred Compensation Plan (a 457 plan) is a voluntary supplemental retirement savings program available to all benefits-eligible employees. Through the plan you defer a portion of your county pay to a variety of investment options before taxes are deducted. This reduces your taxable pay (usually providing an immediate tax advantage) and helps you save for the future.
There are no fees to participate in the plan. You may defer as little as $30 per paycheck to get started. Annually, you may defer as much as $15,500 if you're under 50 or $20,500 if you're 50 or older.
When you leave employment with King County, you may withdraw your money in a lump sum, installment payments or an annuity payment, or you may leave your money invested in the plan until you reach age 70.5 (provided your account balance is more than $5,000). Withdrawn funds are taxed, but ideally after you've retired and your income and tax liability are less.
A board made up of King County officials and employee representatives oversees the plan with the assistance of an independent financial consultant. T. Rowe Price administers the plan for the county, providing enrollment, recordkeeping services and participant communication and education.
For more information, contact T. Rowe Price or the deferred compensation coordinator, or attend a quarterly workplace seminar.
Current for 2008.
