Deferred Compensation Plan
Who is the Snohomish County Deferred Compensation plan provider?
Nationwide Retirement Solutions (NACO) is Snohomish County's Deferred Compensation plan provider. Please visit the Nationwide website to learn more about Snohomish County’s deferred compensation plan and to log in to your account. There you will find videos, tools and calculators, definitions, online support and forms, an extensive financial and retirement library, set up online access, and much more.
We have two Nationwide retirmeent specialists that are ready to assist you! Please contact Debbie Vichot or Mike Ferguson.
Debbie can be reached at (206) 218-9985 or via e-mail at VICHOTD1@nationwide.com.
Mike can be reached at (509) 385-7825 or via e-mail at email@example.com.
What is a 457b Deferred Compensation Plan?
A 457b deferred compensation plan is a retirement plan offered by your employer, created to allow public employees like you to put aside money from each paycheck toward retirement. A deferred comp plan can help bridge the gap between what you have in your pension and Social Security, and how much you'll need in retirement. Your employer may offer Roth 457b accounts within the 457 plan.
Here are some frequently asked questions about deferred comp plans:
- What sets a 457b apart from other retirement plans? A 457(b) may offer benefits other retirement plans can't, like penalty-free withdrawals once you stop working for your public sector employer.
- What does tax-deferred mean? Basically, you don't pay income taxes on your deferred comp plan contributions or earnings until you retire and/or begin to take payments from your account. This may lower your taxable income now and in retirement. Withdrawals taken in retirement are taxed as regular income.
- Can I combine retirement accounts? Our Retirement Specialists will work with you to combine, or consolidate your eligible retirement accounts into your deferred comp account. This may make managing your retirement investments a little easier.
What is a Roth 457 Account?
You’ve probably heard of a Roth IRA – an investment vehicle that lets you make contributions that are not tax deductible but take tax-free distributions in retirement, after certain conditions are met. Did you know there’s also a Roth option for 457(b) deferred compensation plans?
When you make Roth 457 contributions, you’ll pay taxes upfront when your money goes into the plan. Then you’ll enjoy tax-free withdrawals – as long as you’re at least 59½, and do not take withdrawals from your Roth account for at least five years after your first Roth contribution is made to the plan.
You can choose to allocate part or all of your salary deferral to the Roth or all or part of your salary deferral to your traditional 457 pre-tax account.
Contact Debbie Vichot if you have questions.
Which employees are eligible for Deferred Compensation match:
All regular Snohomish County employees working 20 hours or more in a budgeted position, except where indicated below.
The following are NOT eligible for Deferred Compensation match:
- Elected Officials
- Sheriff’s Deputies and Sergeants*
- Sheriff’s Law Enforcement Support*
- Corrections Guild (Corrections Deputies)*
- Corrections Support*
*Other items were negotiated in these contracts in lieu of the employer match for deferred compensation.
How is the match calculated?
There are three different ways that matches are calculated for those that are eligible. They are as follows:
- For Airport Fire Fighters:
Deferred compensation match, dollar for dollar, to 3% of monthly base wage.
- For Sheriff’s Lieutenants and Captains (SOMA):
The Employer shall match twenty percent (20%) of the employee’s contribution to the County’s Deferred Compensation Plan rounded up to the nearest dollar to a maximum match by the County of $105.00 per month.
- For all other eligible employees:
The Employer will contribute fifty cents ($.50) for every dollar ($1.00) contributed by the employee. The employer contribution will not exceed one percent (1%) of the employee’s monthly base wage.
To notify Nationwide of your name change or address change:
1. Mail Nationwide a letter with your account number, former name, new name, address, telephone number, and photocopy of a legal document that shows your name change, like a marriage certificate or driver’s license to:
Nationwide Retirement Solutions
P.O. Box 182797
Columbus, OH 43218-2797
2. The letter should inform them of your new name and ask them to update their records.
3. Nationwide will send you a confirmation letter, or notify you of additional information needed to complete your request.
4. You can also change your address online.
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