457(b)

A 457 is a retirement savings plan that allows employees to make contributions on a pretax basis, thus income taxes are deferred until your assets are withdrawn. Most plans allow you to start, stop, increase or decrease contributions at any time. The contribution limits are separate from those of 401(k) and 403(b) plans and more flexible withdrawal options are often available.
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Who is eligible?

Eligibility is determined by your employer, so please check the Plan Description menu option on our website or contact JEM to find out who is eligible under your employer’s Plan.

What is the 457(b) Retirement Savings Plan?

A 457 Deferred Compensation Plan and is a tax-deferred supplemental retirement Plan sponsored by your employer. The Plan is authorized by Internal Revenue Code (IRC) Section 457(b) and is governed by federal tax rules. The Plan allows employees to voluntarily contribute a portion of their compensation on to a retirement plan. The amount invested plus earnings is not taxable until withdrawn from the Plan unless you are in a Roth account. In a Roth account the contributions are taxable but earnings are never taxable if all tax rules are followed.

How is the 457(b) Retirement Savings Plan provided to participants?

Your employer contracts with JEM Resource Partners (JEM) to provide administrative, investment and communication services to participants. JEM is the main contact for participants. You can find out how to contact JEM by choosing "Contact Us" from the menu.

How does the Plan work?

You elect the amount you wish to defer from your gross salary each pay period. The amount you elect to defer is withheld from your paycheck each pay period.

Who contributes?

You. Check the Plan Description on the website menu to see if your employer contributes to the Plan.

How do I enroll?

You may join the Plan at any time by clicking the "Access My Plan" button in the top menu and selecting register after choosing the correct plan type. You will need your Social Security Number and the plan password provided on the Summary Plan Description for your employer. The Summary Plan Description can be found on our website in the Plan Description section by selecting your employer and plan type.

What is the contribution amount?

You decide the amount that you want to contribute. Please keep in mind that there are limits imposed under the Internal Revenue Code. The maximum amount you can contribute during each calendar year is up to 100% of your includable compensation or the maximum listed in the table below, whichever is less.

Maximum Yearly Contribution

Year Maximum
2011 $16,500
2012 $17,00
2013+ TBD-Indexed to inflation in $500 increments.

During one of the three calendar years prior to your Normal Retirement Age* you may utilize the Standard Catch-up provision by making additional contributions to the Plan of up to twice the regular deferral limit. There are complex rules for calculating this so if you qualify to use this please contact JEM.

If you work for a public/governmental employer and are age 50 or older you may utilize the Age 50+ Catch-up provision by making additional contributions to the Plan. During any year in which you are utilizing the Standard Catch-up provision you may not utilize the Age 50+ Catch-up provision. The additional contribution amounts are listed in the table below:

Additional Yearly Contribution Utilizing Age 50+ Catch-up**

Year Maximum
2011 $5,500
2012 $5,500
2013+ TBD-Indexed to inflation in $500 increments.

*The term "Normal Retirement Age" shall mean the range of ages from the earliest age at which the Participant has the right to retire and receive a retirement benefit, under the defined benefit public retirement system of which the Participant is a member, if any, without actuarial or similar reduction because of retirement through and including age 70½, as designated by the Participant. Any Participant who works beyond age 70½ may designate a Normal Retirement Age greater than 70½ provided, however, that Normal Retirement Age may not be later than the date or age at which the Participant terminates employment with the Employer.

**This rule does not apply to Participants in plans of private non-profit employers.

How are my Plan contributions invested?

Please check the Vendor List under Plan Description option for your employer on the website menu. If your employer is a public/governmental employer funds in the Plan must be held in trust by a financial institution that qualifies to hold the funds or held by an insurance company. This rule does not apply to plans of private non-profit employers.

What are my investment option choices?

The most recent investment option information can be found in the Plan Description section for your employer.

How do I make investment option changes?

If the JEM/Wilmington Trust investment platform is the only option listed on your Vendor List under the Plan Description, then the following information applies. If your Plan is a “multi-vendor” plan then you will need to skip to that explanation below. In a multi-vendor plan various insurance and mutual fund companies will be shown on the Vendor List.

JEM/Wilmington Trust Instructions
If you are changing your investments for the first time, you may join the Plan at any time by clicking the "Access My Plan" button in the top menu and selecting register after choosing the correct plan type. You will need your Social Security Number and the plan password provided on the Summary Plan Description for your employer. The Summary Plan Description can be found on our website in the Plan Description section by selecting your employer and plan type.

If you have already initiated changing your investments, you can make future changes online by selecting login from the "Access My Plan" section under the correct plan type. The following transactions can be made online:

  • Move all or a portion of your existing balances between investment options.
  • Change how your future contributions are invested.

You can check your account balance by logging into our website or you may call JEM toll free at 800-943-9179.

Multi-Vendor Plan
The companies with whom you can choose to invest are shown in the Vendor List. You will need to contact the company you choose to set up an account and make changes in the account. You will enroll only for payroll deductions on the JEM website. Specific investment elections will need to be chosen through the investment providers. For more information about specific products you will need to contact your investment provider.

To change your payroll deductions, if you are changing your elections for the first time, you will need to enroll by choosing “'Login”' on the left-hand menu and clicking "New to the system? Enroll Now!" You will need your Social Security Number and the plan password provided on the Plan Description for your employer. The Plan Description can be found on our website by choosing “'Plan Description”' from the menu. The elections you make during the enrollment process will take the place of your current elections.

If you have already enrolled on our system, you can make future changes online by clicking the “'Login”' button on the menu and accessing your account. The following transactions can be made online:

  • Contribution Amount
  • Investment Provider Allocation Percentages

Investment providers who choose to cooperate fully with the data sharing requirements of the Plan will have information available for you by logging in to your account. Investment providers who do not fully cooperate with the data sharing agreements of the Plan may display zero balances. You will need to contact those investment providers for more information.

Are there fees to the participants in the Plan?

Fees can vary from plan to plan. Please see the Plan Description for your Plan to get more details.

When can I withdraw money from my account?

  • Attainment of age 70½
  • Death
  • Termination of Employment

What are my distribution options?

  • Receive a lump sum distribution (subject to ordinary income tax)
  • Rollover your account balance*
  • Leave in the Plan until a future date (but no later than age 70½ or retirement)*

*Not available in plans of private non-profit employers.

What happens if I leave employment? When am I required to withdraw my money?

The Internal Revenue Code allows distribution of funds only upon retirement, termination of service with the participating employer, or attainment of age 70½. At the time you terminate service you may:

  • Keep your money invested in the Plan and if desired, continue to manage your money within the offered investment options*;
  • Withdraw your money - subject to ordinary income tax; or
  • Roll your money to an IRA or another eligible employer that accepts rollovers*.

*Not available in plans of private non-profit employers.

What if I need some of the funds while still working for my employer?

The Internal Revenue Code and the Plan contain three provisions that allow withdrawal of funds while still employed. These three provisions are limited and have strict requirements, which must first be met. They are:

  • An unforeseen emergency must be documented, meet the Internal Revenue Code definitions and criteria, and be approved by the Plan Administrator.*
  • A "de minimis" withdrawal - this provision allows a withdrawal while employed if your balance is $5,000 or less, you have not deferred for the last 24 months and have never used this provision before.*
  • Attainment of age 70½, but you must stop your deferrals.

*Not available in plans of private non-profit employers.

What happens to my money when I die?

Your designated beneficiary(ies) will receive the full value of your account. Your beneficiary(ies) must contact JEM to apply for a distribution.

Are loans available under the Plan?

Yes, loans are available.* The minimum loan amount under the Plan is $1,000 and the maximum loan amount is 50% of your account value. Participants with account values less than $2,000 are not eligible for loans. For further information on loans, please contact JEM at 800-943-9179.

*Not available in plans of private non-profit employers.

How can I change my salary reduction?

You can change your salary reduction at any time online by logging on to your account.

How can I stop my salary reduction?

You can stop your salary deferrals at any time online by logging on to your account.

You may begin contributing again to the Plan at any time online by logging on to your account.

How can I get more information?

To get more information about the Plan or enrolling in the Plan, please check the Plan Description on our website or contact JEM at 800-943-9179, or visit the other areas of this website.