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The Deferred Compensation Plan
Funding Your DCP Account
Regular Contributions
A participant can contribute anywhere from 1% to 75% of his/her gross earnings in multiples of 0.5%. These contributions can be suspended at any time, and for as long as the participant wishes.
The contribution amount is calculated after sums for pension contributions have been deducted. To calculate the contribution amount (deferral percentage), begin with gross wages, then deduct pension (414[h]) contributions, the resulting balance is the sum on which the contribution amount is based. The Plan also offers an online calculator that an employee can use to see how contributions will affect his/her paycheck.
Contribution Limits
The limit on contributions to the 457 Plan is 75% of reportable gross annual compensation - up to a dollar limit of $23,000 for calendar year 2024;
$30,500, if age 50 or older ($22,500 for calendar year 2023; $30,000, if age 50 or older). The dollar limit can consist of all before-tax, all Roth (after-tax) or a combination of the two. This amount stands as a separate dollar limit and does not need to be combined with the 401(k) Plan or a 403(b) plan.
The limit on contributions to the 401(k) Plan is 75% of reportable gross annual compensation - up to a dollar limit of $23,000 for calendar year 2024; $30,500, if age 50 or older ($22,500 for calendar year 2023; $30,000, if age 50 or older). The dollar limit can consist of all before-tax, all Roth (after-tax) or a combination of the two. If a participant is contributing to another 401(k) or a 403(b) plan, the total annual contribution to all plans must be combined and cannot exceed $23,000 in calendar year 2024 ($22,500 in calendar year 2022).
When a participant's payroll deductions reach the annual maximum allowable contribution limit, they will cease and restart automatically in January of the following year.
Setting Up Roth Deferrals for the First Time
Participants who are already enrolled in the Pre-Tax 401(k) or Pre-Tax 457 must access his/her account online to modify their deferral percentage to include Roth (after-tax) deferrals (participants can choose to make before-tax and Roth (after-tax) deferrals).
View the 457/401(k) Plan Differences
How to Enroll in the Plan
See how DCP contributions will affect your net-pay