The 457(b) State of Arizona Deferred Compensation plan managed by Nationwide allows you to save extra money for retirement. The university does not match contributions to the 457(b) plan. You pay no federal or state income taxes on your contribution. Income taxes are paid only when the money is distributed (usually after retirement). There is no penalty for withdrawal of funds at any age.
All university employees (full-time, part-time, hourly, or temporary) are eligible to participate in a 457(b) plan.
You can contribute up to the IRS annual maximum each calendar year. For 2014 the contribution maximum is $17,500.Catch-up contributions
If you are age 50 or older you can make catch-up contributions. For 2014 you can contribution an additional $5,500 for an annual maximum of $23,000. You may be eligible to make additional catch up contributions. For more details contact the university's Nationwide representative.
You invest your 457(b) contributions with Nationwide the 457(b) plan's investment manager. Nationwide offers a wide variety of funds with different investment strategies.
Enroll in the 457(b) plan
Stop or change contributions
To stop or change contribution amounts:
- Log in to LOUIE.
- Click on “Self Service.”
- Click on “Benefits.”
- Click on “Benefits Summary.”
- Click on the “Active” link to see a detailed
page of your current deductions.
- Click on “Edit” and adjust the dollar amount of
Any changes you make will normally be effective the same pay
period within which you make the change.
- While you are an active employee, you are not allowed to access your account funds except for the reason of 'Hardship' as defined by the IRS.
- Once you leave the university or retire you can request a distribution of your account from the investment manager.
- Distributions taken before age 59 1/2 are not subject to tax penalty in addition to income taxes.
- Contact your investment manager to request a distribution.