457 Deferred Compensation & Roth IRA Plans
League City offers a voluntary 457 deferred compensation plan that can provide additional savings for retirement.
With the traditional 457 option, funds are deducted pre-tax and interest accumulates tax deferred. Withdrawals are subject to income tax.
With the Roth 457 option, funds are contributed after tax and interest accumulates tax free. The advantage to the Roth option is that all withdrawals made after age 59 ½ are not subject to income tax.
With both the 457 Plan and Roth options, your contributions will be invested in the funds that you select, and the value of your account will fluctuate based on fund performance.
You may set up, stop or make changes to your contribution amount at any time throughout the year. You can make withdrawals from your account when you leave employment, as well as during employment, subject to the City’s rules and IRS rules. Loan options may also be available.
The City is proud to offer both the 457 Deferred Compensation Plan and Roth IRA Plan through ICMA. You may also choose to enroll in a 457 Deferred Compensation Plan and access financial planning services through Starburst Financial.