State of Missouri Deferred Compensation Plan 457(b)
The State Technical College of Missouri 457(b) Deferred Compensation Plan is a plan that operates under Section 457 of the Internal Revenue Code. The 457 deferred compensation plan allows employees to save and invest money for retirement with tax benefits. Contributions are made to an account in the employee’s name for the exclusive benefit of the employee and his/her designated beneficiaries. The value of the account is based on the contributions made and the investment performance over time.
Eligible employees may, on a voluntary basis, begin participation in this Plan on the first day of the month following employment at the College or on the first day of any following month after the enrollment forms are completed and returned to Human Resources. The employee’s salary reduction agreement may be terminated at any time. The employee is fully vested at the time the employee first contributes to the plan.
Pre-tax contributions made reduce the employee’s taxable income for the year. These contributions and all associated earnings are then not subject to tax until they are withdrawn. The employee may be able to make after-tax Roth contributions which allow for potentially tax-free earnings.