- Roth 457 is coming to Deferred Compensation. A designated Roth account is being added to the Deferred Compensation Plan in January of 2016. The Roth provision allows employees to make after-tax contributions to their account which become available for withdrawal after separation of employment. Then, both Roth contributions and associated earnings can be withdrawn tax-free when you take a qualified distribution.
We are accepting enrollments in the Roth 457 for payrolls with an issue date of January 1, 2016 date or after. You must complete this Enrollment Form
and indicate the amount you wish to contribute, even if you currently defer to a pre-tax Deferred Compensation account. If you want to stop your current Deferred Compensation deferrals, you must complete the Change Form
revoking your participation at the same time you are enrolling in the Roth.
Additional information can be found in our latest newsletter
- Deferral limits will remain the same for 2016. The IRS announced that pension limitations governing the 457 plans will remain the same for 2016 as the increase in the Consumer Price Index was not sufficient to meet the statutory thresholds for its adjustment. Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation will stay at $18,000. The catch-up contribution limit for employees aged 50 and over will remain at $6,000, and the Special Catch Limit is $36,000.
The State of Illinois Employees' Deferred Compensation Plan is a supplemental tax-deferred retirement plan for state employees. In 2015, employees will be allowed to defer up to $18,000 and employees over age 50 can defer $24,000. The deferrals, together with any earnings, accumulate tax-deferred until the employee terminates service, dies, or incurs unforeseeable financial hardship. Once distributions begin, the distributed monies are fully taxable as ordinary income for federal tax purposes. The funds are never taxed by the State of Illinois.
To review your account or make investment changes, you can access your account via the T. Rowe Price website.
Enroll Now and Build for Your Financial Future. Contact your Agency Liaison or the Deferred Compensation Office at the address and numbers below.
Questions and answers to address the most common inquiries about the Deferred Compensation Plan.
Examine descriptions of the funds available in the Deferred Compensation Plan with an illustration of their share price stability versus their return potential.
Access up-to-date, personal account information, including current share prices for all funds, via the T. Rowe Price website. Fund prices are shown under the 'Investments' tab. Registration required for first-time users.
Determine the investment results for each of the funds and their appropriate benchmark indexes.
Download a Deferred Compensation form or newsletter now using Acrobat Reader.
Reference Manual for Deferred Compensation Liaisons
Review a comprehensive, easy to understand guide for the Deferred Compensation Plan or the Summary Plan Description.
Whether retiring, moving to a job outside state government or leaving state service to pursue family or educational goals, you may decide how you want your Deferred Compensation account distributed. You can now contact T. Rowe Price at 888-457-5770 and request a distribution over the phone. Download a distribution booklet [PDF, 33k], W-4P Withholding Allowance Certificate [PDF, 36k], Safe Harbor Notice 2014-74, or the Direct Deposit Form [PDF, 7k]using Acrobat Reader.
CMS Deferred Compensation Office
801 S. 7th Street
P.O. Box 19208
Springfield, Illinois 62794-9208
(217) 782-7006 (Voice)
(800) 442-1300 (Toll Free)
(217) 785-3979 (TDD)