Business: Tax Shelter Annuities - 403(b) And Deferred Compensation Plans - 457 (b)

Tax Shelter Annuities - 403(b) and

the Deferred Compensation Plans - 457(b)



About 457(b):

At its meeting of September 13, 2004 the Board of Trustees approved a deferred compensation plan under Section 457 of the Internal Revenue Code. The new 457 plan will complement the current 403(b) plan.

The District has chosen VALIC and Employee Benefits Services Group (EBSG) to provide 457 retirement plan products to the employees. Since 2015, we have added a third 457 vendor - CalSTRS Pension2.

The 457 Program would allow employees to defer $19,500.00 for the calendar year 2020 in addition to the $19,500.00 permitted under the 403(b) plan for a combined maximum of $39,000.00 for year 2020 (with amounts scheduled to increase annually). There are no changes to these limits in 2021. In addition, there are age-based and retirement catch-up contributions, if qualified. For detailed information on 457 plan, click What is a 457?

For additional assistance, you may contact Anna Liang (650-949-6263) or Joey Zhou (650-949-6257)

IRS Resources and other helpful links:

Information for Vendors