Retirement Plan Types
401(a) and 457(b) Plans
Your pension and Social Security may not be enough to cover your expenses in retirement. That’s why the city of Phoenix provides the 457(b) deferred compensation and 401(a) defined contribution retirement plans, which can help bridge the income gap in retirement.
Here are a few reasons to take advantage of one or both of these plans, and review our Plan Summary to easily compare the Plans.
- Contributions are automatically deducted, making saving easy
- Both plans are tax-deferred, so contributions to either provide tax deferral opportunities
- Both plans may reduce your federal taxable income
- More of your dollars have the opportunity to be invested toward your retirement because of the tax deferral
- Full control over how your money is invested
- Automatic re-investment of any earnings at no additional cost
- Your money can stay in the plan even after separation from service
- Access to Nationwide Plan Service Representatives up to and throughout retirement
Note: The city’s 401(a) plan has a 31-day eligibility period for enrollment. If you enroll during that time frame the decision to participate and your selected contribution election are irrevocable. The city’s 457(b) plan has no eligibility time limit and contribution elections can be changed at any time.
Both plan types have similar contribution limits, but may limit when you can take money without penalty. Keep in mind that investing involves market risk, including possible loss of principal. As you get started in the plan, we’ll help you understand market risk and strategies that may help you deal with it.
Get the help you need
Talk with one of our Plan Service Representatives to learn more about these plan types. Remember that information provided by Plan Service Representatives is for educational purposes only and is not intended as investment advice. Neither Nationwide nor our representatives offer tax or legal advice. Consult your own counsel before making any decisions.