A Roth Contribution Option is Being Added
to Your Cook County Deferred Compensation Plan
The Cook County Deferred Compensation Plan is adding another way to contribute to your account. Effective January 1, 2024, Roth contributions will be offered by your plan. With Roth contributions, income taxes are deducted from your contribution before it’s invested in your account. This differs from tax-deferred contributions, which are invested before taxes are deducted from your account.
You may want to consider making Roth 457 contributions if you:
- Expect your income taxes or tax rates to be higher in retirement
- Are younger, with years until your retirement
- Want to save many thousands more annually than a stand-alone Roth IRA allows
- Are looking for a way to leave tax-free assets to heirs
Learn more about the potential benefits of after-tax contributions and whether they’re a good fit for your retirement account.
Register to attend a Roth webinar.
Also, the IRS announced changes to the amount that individuals can contribute to their plans in 2024. Contribution limits apply to both Roth and pre-tax contributions.
2024 deferral limit:
- Increased from $22,500 to $23,000
Age 50+ catch-up limit:
- Increased from $30,000 to $30,500
Special 457 catch-up limit:
- Increased from $45,000 to $46,000
Contributions and earnings distributed from a Roth 457 account are not taxable if the distribution is made after 5 consecutive tax years since the first Roth contribution was made to the Roth 457 account and the distribution is made after age 59½, or because of death or disability.
NRE-2005IL-CK (12/23)
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