457(b) and Roth 457(b) Plans
The 457(b) plan offers LSU employees one option through the State of Louisiana Deferred Compensation Plan with Empower Retirement. This plan allows employees to defer a pre-tax portion of earnings into a supplemental retirement account.
The Roth 457(b) feature provides an additional way to save for retirement. Employees may make contributions on an after-tax basis under the Roth option, on the pre-tax basis under the 457(b) plan, or a combination of the two. Although the Roth option doesn't change how much can be contributed, it does provide more control over when contributions - and retirement income - will be subject to federal income tax. If an account is open for at least five years and the employee has turned age 59 1/2, every cent in a Roth 457(b) could be withdrawn tax-free.
Enrolling and/or Inquiries
For a 457(b) supplemental retirement account, you may begin the enrollment process by calling 800-701-8255 to verify your information and establish your log-in. You will need to provide a Date of Hire, and then a security code will be sent to a cell number or email on record with Empower. If no cell number or email is on record with Empower, additional identity verification will be required. From there, you will be instructed to complete your contribution amount online at www.louisianadcp.com. The investment will default to a 6% contribution rate into a Target Date fund based on your date of birth. Any of this may be changed in the future by logging on and making changes to your account. This data will be communicated to LSU’s payroll department via electronic file and you will receive a confirmation of your activity. Federal regulation on 457(b) plans provides that any changes you submit on your account will take place the following month.
Current participants can make deferral changes online at louisianadcp.com.
Maximum Deferral Amount Limits
|Annual Maximum Deferral Amount||$18,500|
|Annual Maximum Deferral Amount for participants age 50 and older||$24,500|
To adjust contributions to an active 457(b), submit the Salary Deferral Agreement to 110 Thomas Boyd Hall.
Termination of employment with LSU allows funds to be rolled over to an IRA or other qualified plan or receive a cash distribution without an early withdrawal penalty. Contact Deferred Compensation at 1-(800) 701-8255 to begin your distribution after separation.