457 Employee Contributions (PSE)

When you participate in RIC, you choose how much to contribute to your 457 employee contribution account through automatic payroll deductions (not to exceed IRS 457 annual maximum contribution limits). 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). There are no vesting requirements.

Contribution Limits

There is no minimum amount to participate (unless specified by your employer). The maximum contribution limits are declared by the IRS annually (IRS 457 maximum contribution limits).

Employees separating from employment 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 the 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 generally effective with the next available paycheck.

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.

3-Year Catch-up

The 3-Year Catch–up provision allows employees who are close to retirement to make contributions up to twice the regular contribution limit.

If eligible for the 3-Year Catch-up provision, you may qualify to contribute up to twice the regular annual contribution limit during the three years prior to, but not including, the year you will reach normal retirement age.

To request a 3-Year Catch-up worksheet, contact your payroll office.