This state of Arizona tax-favored voluntary retirement savings plan qualifies under section 457(b) of the Internal Revenue Code exclusively for public employees.
Employees can enroll in the voluntary 457(b) plan through the Nationwide website. Participants may defer a flat per pay period amount on a before-tax basis through payroll deduction. Before-tax contributions are withheld before federal and state income taxes are calculated, which reduces your taxable income. You pay income taxes only when funds are distributed.
Note: Nationwide offers participants options to enroll in the after-tax ROTH plan and elect a percentage for their contribution. At this time, ASU is not set up to process either of these types of elections. ASU employees must elect the before-tax option and set a per pay period contribution amount.
Contributions
- Contributions can be increased, decreased, stopped or resumed at any time.
- Minimum contribution is $10 per pay period; you can contribute up to as much as your take-home pay allows after taxes and deductions.
- If you elect an amount that exceeds your take-home pay, no deduction will occur.
- You may be eligible to make additional 457(b) contributions if you meet one of these provisions:
- Under the Age 50 Catch-Up Provision, you will automatically be enrolled to contribute the allowed additional amount if you are at least age 50 during the calendar year. For the age 50 limits, refer to the IRS contribution limit table.
- Under the 457(b) Plan Double Limit Catch-up provision, if you are within three calendar years of retirement, you may be eligible to contribute up to double the basic annual limit. To determine if you are eligible, contact Nationwide.
Refer to IRS contribution limit table for details.
Your contributions will automatically stop during the calendar year for one of the following reasons:
- If eligible and enrolled, you reach the Double Limit Catch-up provision contribution limit.
- You reach the automatic age 50 contribution limit if you are age 50 or older.
- You reach the basic annual contribution limit if you are under age 50.
If you reach the contribution limit during the year, your contributions will automatically resume on the first pay date of the following calendar year, at the same contribution amount that was in effect when the maximum was reached, unless you change it.
Contact Nationwide for the following items:
- Establish a new account and designate your per-pay-period contribution amount.
- Increase, decrease, stop or resume contributions.
- Request a withdrawal of contributions.
Schedule a one-on-one personal consultation. Visit Nationwideonline for all four campuses.
Vesting
You are 100% vested in all contributions to the plan.
Loans and hardship withdrawals
While actively employed in the Arizona university system, you may be eligible to borrow funds from your account or withdraw funds due to a hardship. Contact Nationwide for more information or to initiate one of these requests.
Withdrawals, and rollovers
While actively employed with a participating state of Arizona employer, you may be eligible to withdraw funds for one of the following reasons:
- You have a disability.
- You need funds for an unforeseen emergency.
- You want to purchase service credits in a governmental defined benefit plan.
When you leave employment, you may withdraw or rollover all or a portion of your 457(b) account balance. Contact Nationwide for forms and instructions.
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