457(b) Deferred Compensation Plan | RBFCU - Credit Union Schedule an Appointment ATMs & Locations Rates Apply for a Loan Open an Account Routing Number 314089681 Join Find Your Next Car Search New & Used Vehicles Preferred Dealers Loan Protection GAP Plus Mechanical Repair Coverage (MRC) Credit Insurance Home Loans & Realty You found your dream home, now find financing that fits you Mortgage Overview Purchase Refinance Loan Options Fixed-Rate Adjustable-Rate FHA & VA Jumbo New Construction Land 100% Financing 100% Financing for Medical Professionals First-Time Homebuyers Home Equity/HELOC Home Improvement Homebuying & Selling Services Realty Services Title Insurance Home Appraisal Mortgage Retail Team Retirement Helping school employees plan for the future with confidence Retirement Program Overview Schedule an Appointment 403(b) Roth 403(b) 457(b) Roth 457(b) RBFCU Freedom Retirement Plan Enroll Online Manage Your Account Investments Helping you invest in life's big moments Investments Overview Schedule an Appointment Financial Advisors Virtual Advisory Center Investment Strategies Financial Health Check Wealth Management Trust Services Insurance All the coverage you need in one place Insurance Overview Request a Quote Homeowners Insurance Auto Insurance Personal Insurance Business & Commercial Insurance Health Care Plans & Insurance Medicare Supplement Insurance Plans Business Earning your trust by serving your business Business Overview Business Loans SBA Loans Business Credit Card Business Accounts Business Checking Business Services Select Group Membership Learn Learn more, earn more, save more with RBFCU Learn About Finances With RBFCU Budgeting & Saving Credit Scores & Credit Reports Buying a Car & Vehicle Loans Student Loans & Paying for College Mortgage Loans & Homeownership Investments & Financial Planning Security & Fraud Center Financial Education Request a Financial Presentation GreenPath Financial Wellness Virtual Financial Coach Financial Counseling & Education Debt Management Calculators It's a Money Thing Video Series Junior Series - Ages 4-10 En Español Seminars & Webinars Youth Ambassador Program FAQs RBFCU Mobile app Download our app for a better mobile banking experience. Get 457(b) Deferred Compensation Plan (DCP) A 457(b) is a Deferred Compensation Plan (DCP) that allows employees of educational institutions and certain tax-exempt organizations to save pre-tax dollars for retirement. A 457(b) works much like a 403(b) plan in terms of taxes and loans and can offer another way to save for retirement. Some school districts sponsor 457(b) plans in addition to offering a 403(b) plan. The RBFCU Retirement Program is available to employees in school districts and certain tax-exempt organizations within the state of Texas. With our financial advisors, you can create a plan you’ll feel confident about. What you should know about a 457(b): Taxes Contributions are made to your 457(b) before taxes are taken from your paycheck, reducing your taxable income. Taxes are paid on withdrawals, typically in retirement. Withdrawals Regardless of age, you may withdraw from your 457(b) when you leave your employer, or in the case of death or unforeseen emergency. You may be required to pay income tax on the amount withdrawn. Loans If plan allows, a loan may be taken against your 457(b) funds regardless of your employment status. Repayment terms and interest rates are determined by your investment provider. Certain rules may apply. Plan Your Future With More Confidence Investing wisely in your retirement plan starts with useful information. Take advantage of the insights, guidance and educational resources available to you. With a little help from a financial advisor, you can make the right choices to meet your financial goals. Request a complimentary initial consultation To learn more about the RBFCU Retirement Program and benefits of enrolling, contact us at: Retirement Calculators What will my income be after I retire? What will my expenses be after I retire? Retirement FAQs How much can I contribute to a 457(b) plan? In 2023, you may contribute up to $22,500 to a 457(b). If you are over age 50, you may contribute an additional $7,500 annually in 2023. This limit is separate from the 403(b) limit. Are there any additional contribution catch-up provisions for the 457(b) plan? Depending on your district plan, for the year 2023, you may be able to add up to an additional $22,500 in addition to the standard limit of $22,500. This cannot be used with the age 50+ catch-up provision. This catch-up is used during your final 3 years before retirement age (deemed as age 62 or 65, depending on your district plan). You must qualify every year through your district’s administrator. What is the difference between a 457(b) plan and a 403(b) plan? Both types of plans are tax deferred, but the 457(b) lets you start withdrawing money from your account as soon as you stop working for the sponsoring employer, no matter your age or in the case of death, disability or unforeseen emergency, regardless of your age if certain requirements are met. Meanwhile, 403(b) plans allow standard, penalty-free withdrawals at age 59½, as well as limited early withdrawal exceptions. Financial Resources Schedule an Appointment Calculators Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Ameriprise Financial Services has a partnership with this financial institution to provide financial planning services and solutions to clients. The financial institution is not an investment client of Ameriprise but has a revenue sharing relationship with us that creates a conflict of interest. Details on how we work together can be found on ameriprise.com/sec-disclosure Ameriprise Financial is not affiliated with the financial institution. RBFCU Retirement Program, a financial advisory practice of Ameriprise Financial Services, LLC, is a division of RBFCU Investments Group LLC. The initial consultation provides an overview of financial planning concepts. You will not receive written analysis and/or recommendations. Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC