In addition to the City’s Defined Benefit Pension, they also offer optional participation to the defined contribution 457 Plan along with Roth IRAs.
A 457 Deferred Compensation Plan is a supplemental retirement savings program that allows you to make contributions on a pre-tax basis. Federal taxes are deferred until your assets are withdrawn, usually during retirement when you may be in a lower tax bracket.
Benefits of participating in a 457 plan are reduced income taxes while investing for retirement, earnings accumulate tax-deferred, convenient payroll deductions, one is allowed to make additional “catch-up” contributions if 50 or older, if one changes jobs, they have the flexibility to move their account into their new Employer’s retirement plan and if retiring or leaving service early, there are no penalties for withdrawals.
Advantages of the 457 Plan are you can increase, decrease, stop and restart as often as one wishes without fees or penalties, you may choose from a wide range of investment options, no minimum investment requirements, designated beneficiaries are entitled to receive all remaining funds in the event of your death, flexible withdrawal payment options and you control your account even while withdrawing assets. For further information please visit here.
With a Roth IRA, you do not get any up-front tax savings for your contributions. However, the earnings on those contributions can be completely free of federal income and penalty taxes if withdrawn after five years of ownership and after the age of 59 ½. For further information on IRAs, please visit here.
City of Delray Beach
100 NW 1st Avenue
Delray Beach, FL 33444
(561) 243-7115 Ext. 1716, Phone
(561) 243-7166, Fax