Deferred CompensationMany retirement experts say that Social Security and a basic pension will not be enough for many retirees to live the life they are expecting.To expand your retirement savings, you may want to think about the King County Employees Deferred Compensation Plan, a voluntary 457 account offered exclusively to County employees. The plan allows you to defer a portion of your paycheck to a variety of investment options before taxes are deducted, reducing your taxable pay now and helping you save for the future.
There are no fees to participate in the plan. You may defer as little as $30 per paycheck to get started. In 2011, you may defer as much as $16,500 if you're under 50 years of age or $22,000 if you're 50 or older. In 2012, you may defer as much as $17,000 if you're under 50 years of age or $22,500 if you're 50 or older.
Another advantage of the deferred compensation plan is its flexibility—you can change your deferral amounts, your investments and your withdrawal amounts over the course of your employment and your retirement to adjust to changing needs.
A board made up of King County employee representatives oversees the plan with the assistance of an independent registered investment advisor. T. Rowe Price administers the plan for the county, providing enrollment and recordkeeping services and participant communication and education. For more information, contact T. Rowe Price or the deferred compensation coordinator, or attend a quarterly workplace seminar. |
