Savings Plus Programs 401(k) & 457
401(k), 457 Deferred Compensation Plans – Savings Plus is a voluntary program offered by The State of California Department of Personnel Department and administered by Nationwide Retirement Solutions. This program allows eligible employees to save toward retirement by investing pre-tax contributions in tax-deferred investments, via two deferred compensation plans: a 401(k) and a 457. These contributions are made through payroll deductions, prior to federal and state taxes being calculated. There is also a Roth (after-tax) 401(k) plan available.
Currently, the plan contribution limits that apply to Savings Plus are prescribed under Internal Revenue Code (IRC) Sections 401(k) and 457.
Temporary employees enrolled in the PST Retirement Plan are not eligible to participate in these programs.
Contributions to a 457 plan are not offset by contributions to a 403(b), or 401(k) plan. Currently, a participant could elect to contribute up to $18,000 to a 403(b), or 401(k) plan AND up to $18,000 to a 457 plan, for a total contribution of up to $36,000. There is no employer matching contribution.
In order for eligible employees to take advantage of the tax savings via payroll deduction, an account must be established with Savings Plus.
For additional information regarding this program, including maximum contribution amounts, catch-up allowances, and administration of the Savings Plus program, please contact their office at (855) 616-4776, or refer to the Savings Plus website.