New Roth Contribution Option
Effective January 1, 2023, the County’s deferred compensation 457(b) plan will include a Roth option. Roth contributions are deducted from your paycheck on an after-tax basis, and therefore do not reduce gross taxable income. For some employees, it might make sense to pay taxes on account contributions now, rather than when money is withdrawn at retirement. You can contribute to both a pre-tax and Roth after-tax basis at the same time but there are restrictions. Tax considerations can be complex; it’s always a good idea to consult with a financial or tax advisor before making a decision on how Roth 457(b) savings may benefit your long-term savings.
Are You Ready for Retirement?
Saving for retirement begins with your vision for the future. Picture the life you want to live when you retire. Think about how young you’ll be, what you plan to do and how you’ll live.
- Do you plan to retire from full-time employment as soon as possible, or wait until you’re fully eligible for Social Security?
- What’s it going to take to maintain the lifestyle you want in retirement?
- Do you plan to travel more—whether that means exotic vacations or extended visits to friends or family out of state?
- What if your health takes a turn, since medical expenses increase as we age?
If your answers to yourself mean you need additional help preparing for retirement, St. Johns County Board of County Commissioners provides a Deferred Compensation 457(b) Plan for employees through Lincoln Financial. A deferred compensation plan allows you to place income into a retirement account where it sits untaxed until you withdraw the funds.
Start Saving for Retirement
Effective 11/1/22, new enrollments and contributions will be completed directly through Lincoln Financial. Log into your LFG account to change your salary reduction, view activity, name a beneficiary or take advantage of online planning tools and calculators.
Employee Benefit Limits
Check out Employee Benefit Limits for more information on your deferred compensation account limits, such as maximum salary deferral and age 50 catch-up contributions.
Deferred Compensation Questions?
Have questions about your account, loans, or distributions? Call the Lincoln Financial Customer Contact Center any business day, from 8:00 a.m. to 8:00 p.m. Eastern Standard Time at 800-234-3500.
It’s important to assess what you’ve saved, the rate at which you’re currently saving, and how much more you need to meet your goals. But first, you’ll want to put in some time to figure out those targets, based on your desired lifestyle. To help you make decisions we also have a Senior Retirement Consultant with Lincoln Financial – Clark Newell, CRPC, AAMS. Clark is highly trained, experienced, committed to providing support through every step of the retirement planning process and can be reached at: email@example.com or 904-200-8736.