457(b) and Roth 457(b) Plans
The 457(b) plan offers LSU employees one option through the State of Louisiana Deferred Compensation Plan with Empower Retirement. This plan allows employees to defer a pre-tax portion of earnings into a supplemental retirement account.
The Roth 457(b) feature provides an additional way to save for retirement. Employees may make contributions on an after-tax basis under the Roth option, on the pre-tax basis under the 457(b) plan, or a combination of the two. Although the Roth option doesn't change how much can be contributed, it does provide more control over when contributions - and retirement income - will be subject to federal income tax. If an account is open for at least five years and the employee has turned age 59 1/2, every cent in a Roth 457(b) could be withdrawn tax-free.
Enrollment/Contribution Changes
Current participants can make deferral changes online at Louisiana Public Employees Deferred Compensation Plan website.
Please remember, investing in a 403(b) and/or 457(b) supplemental retirement account is not free. Each vendor (company) charges fees, such as record-keeping and in some cases, fees for distribution-related expenses in addition to expenses and fees based on your investment allocation. As a new enrollee in one of these plans, it is up to you to compare and consider the benefits offered by each vendor. New and current participants should confirm all costs associated with their investments, as well as any charges and restrictions associated with your existing contract before requesting a transfer for current participants.
| Enrollee and Participant Considerations | New Enrollee's | Current Participants |
|---|---|---|
| Compare benefits offered by each vendor | X | X |
| Confirm all costs associated with your investment options | X | X |
| Confirm any changes and restrictions associated with your existing contract before initiating a transfer | X |
Annual Maximum Deferral Amount = $23,000
Annual Maximum Deferral Amount for participants age 50 and older = $30,500
Maximum contributions to both a 403(b) and 457(b) account can be made at the same time. Employees may switch supplemental retirement account vendors at any point during the year.
Termination of employment with LSU allows funds to be rolled over to an IRA or other qualified plan or receive a cash distribution without an early withdrawal penalty. Contact Deferred Compensation at 1-(800) 701-8255 to begin your distribution after separation.
Learn about the 403(b) and Roth 403(b) plan and our supplemental retirement vendors.