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Employee Contributions

Image illustrating deposit of paycheck into a 457 piggy bankWhen you participate in RIC, you choose how much to contribute to your 457 employee contribution account through automatic payroll deduction. You may choose to have deductions taken from your paycheck before state and federal income taxes (pretax) or, if allowed by your employer, after taxes are withheld (Roth post-tax). You may contribute as little as $25.00/month ($12.50/paycheck) or as much as the IRS annual maximum limits. There are no vesting requirements.

 

Contribution Limits

The minimum amount you must contribute to participate in the 457 is determined by your employer. The maximum contribution limits are declared by the IRS annually (IRS 457 maximum contribution limits).

Terminating employees may have the option to defer sick and vacation pay from their last paycheck up to the IRS maximum limit.

All pretax contributions and earnings stay tax deferred until you take the money out as income after separating from this employer.

 

Deduction Changes

You may change/stop your payroll deductions at anytime. If you wish to change your payroll deduction elections, please complete your employer's RIC Account Form.

Retiring Employees

Terminating employees may have the option to defer additional compensation (such as paid time off) from their final pay.

Processing Timeline

Payroll deduction change requests are processed to take affect in the month following month the request is received.

IRS Maximum Limit Changes

The IRS declares the annual maximum contribution limits each calendar year (shown above). If the IRS declares to increase the maximum limit in a year, the increase will be in $500 increments.


Public Employees (non-state)