DID YOU KNOW that if you are currently deferring compensation by contributing to a 403 (b) retirement account and you are reaching the limit of what you can contribute annually, you may be able to increase your contributions up to twice the amount by also establishing and contributing to a 457 (b) account? IRS regulations allow public employees to contribute equally to 403 (b) accounts and state government established 457 (b) accounts. In Ohio, the latter is referred to as “Ohio Deferred Compensation” which is a public, non-profit organization created by Ohio legislation. Ohio Deferred Compensation is managed by a 13-member Board composed of public employees, retirees, and appointed investment experts which govern the program in accordance with the provisions of Ohio Revised Code Chapter 148.
Current (for 2021) IRS annual contribution limit by the employee for 403 (b) plans is $19,500 plus an additional $6,500 if the employee is age 50 or older. The IRS annual contribution limit for 457 (b) plans is the same as those for 403 (b) plans and an individual may contribute to both up to the IRS limits! The UC payroll system monitors the limits for employees who are contributing to a 403 (b) or 457 (b) through UC to ensure that they do not exceed the IRS limits.
If you are interested in contributing to Ohio Deferred Compensation, you will have to contact Ohio Deferred Compensation to establish an account and UC Human Resources /Benefits to arrange for the additional withholding from your salary.
If you are planning for your retirement, you can defer all or a portion of your sick and/or vacation payout to either your 403 (b) account or 457 (b) account or you can divide it between both. If you do not have a 457 (b) account and want one, remember to allow enough time to establish one well in advance of your retirement. Also feel free to contact UC’s Benefits Department (firstname.lastname@example.org) if you have questions about deferring compensation.