Louisiana Deferred Compensation
IRS Section 457 - Voluntary Supplemental Retirement Plan
Section 457 of the Internal Revenue Code allows employees of government and non-profit agencies to participate in a Deferred Compensation Plan. When you enroll in the plan you elect to contribute a portion of each paycheck to your deferred compensation account. The amount you contribute is set aside automatically in an account for you and is invested in the funds you select. Contributions to Deferred Compensation are invested on a tax deferred basis.
- Maximum contribution is 100% of compensation up to annual contribution limits listed below.
- Minimum contribution is $10.00 per paycheck for bi-weekly paid employees and $20.00 per month for monthly paid employees.
- Choice of multiple investment options with varying degrees of risk.
After Termination of Employment
- May leave funds invested with Great West; not required to withdraw funds.
- May withdraw funds at termination of service without any penalties. (*Withdrawals are subject to appropriate federal and state taxes and are taxed as ordinary income).
- May roll funds into an IRA; funds not subject to taxes if rolled over into a qualified retirement plan.
Annual Contribution Limits
|Under Age 50||Age 50 & Over|
|$19,500 in 2020||$26,000 in 2020|
Louisiana Deferred Compensation Plan is administered by Empower Retirement (formerly Great West Life) at 1-800-937-7604.
Click here for Online Enrollment . This code is valid through October 1, 2020.
Please click on the link below for Louisiana Deferred Compensation website.