457 Deferred Compensation
In order to supplement their retirement benefits employees of the City of Cincinnati are provided with the opportunity to invest in two deferred compensation programs. City of Cincinnati employees are eligible to participate through payroll deductions in deferred compensation programs administered by MissionSquare Retirement (FKA ICMA Retirement Corp.) or the Ohio Deferred Compensation Program.
Both the MissionSquare and Ohio Deferred Compensation programs provide a broad range of investment options for retirement planning. Because they are tax-deferred plans, neither federal nor state taxes are withheld. Contributions are not subject to federal or state taxes until the assets are withdrawn from the program, and cannot be withdrawn until you retire or terminate your employment with the City of Cincinnati.
MissionSquare Retirement (Plan #300104)
457 Ohio Deferred Compensation Plan (Plan #455001)
To All City of Cincinnati Employees:
The City of Cincinnati recently finalized agreements with Ohio Deferred Compensation (Ohio 457) and the MissionSquare Retirement to make the Roth 457 option available to our employees. You can make contributions (deferrals) to a Roth 457 account with Ohio 457 and/or ICMA-RC.
A Roth 457 account is different from the Traditional 457 account because contributions (deferrals) are post tax rather than pre-tax. Unlike a Traditional 457 account, contributions (deferrals) to a Roth 457 account will not lower your current tax liability for Federal and State purposes. However, if you meet certain conditions when you request a withdrawal, distributions from a Roth 457 account are tax free.
Please be aware the Annual 457 Plan Contribution Limits (established by the U.S. Internal Revenue Service) continue to apply to the combination of Traditional 457 AND Roth 457 contributions (deferrals).
It is important to note that the Employer match amounts can ONLY be made to Traditional 457 accounts. Therefore, in order to receive a match paid by the City of Cincinnati each year, you MUST make contributions (deferrals) to a Traditional 457 account. Amounts contributed to a Roth 457 DO NOT qualify for the City paid match.
The maximum allowable annual contributions established for 2024:
Normal Deferral $23,000
Age 50 and Over $30,500
Pre-Retirement "Catch-Up" $46,000
Change of Contributions
Employees participating in MissionSquare Retirement (formerly ICMA) plan are required to request bi-weekly deferral changes online by clicking here to create an account, or request bi-weekly deferral changes by contacting MissionSquare Retirement Member Services directly at 1-800-669-7400. Requests must be received by the last Thursday of a pay period to be effective for that paycheck. For emergency withdrawals and loans, you can call Member Services at 1-800-669-7400.
Ohio Deferred Compensation participants must call 1-877-644-6457 or visit the online portal. Changes processed through Ohio Deferred Compensation require a minimum of two weeks notice (calls must be received two weeks before the pay date).
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