Overview
The city's deferred compensation program allows you to save and invest today for your retirement. Federal and Arizona state income taxes are deferred until your assets are withdrawn, usually during retirement when you may be in a lower tax bracket.
Under Section 457 of the Internal Revenue Code, you may defer each year a maximum of 100% of your "gross compensation" or an annual dollar limit, whichever is less. The dollar limits are:
Year | Contribution Limit |
---|---|
2024 | $23,000 |
Participation in Deferred Compensation is handled through payroll deduction so your taxes are reduced each pay period.
The deferred compensation plan offers a wide array of investment options. Investors may choose from core lineup, managed account option with Nationwide ProAccount or a self-directed option with Schwab Personal Choice Retirement Account (PCRA). You may generally transfer your assets between funds without restriction. However, some funds may limit your ability to conduct frequent transfers to protect the interest of other investors.