403(b) Accounts, 457 Deferred Compensation Plan and Cash Match
A 403(b) account and a 457 Deferred Compensation account are voluntary tax-deferred retirement savings accounts that are available to individuals who are employed by the Commonwealth of Virginia in either a salaried or wage position. Employees may elect to have a portion of their paycheck deducted on a pre-tax basis deposited into their 403(b) accounts managed by one of the companies on the 403(b) company list and/or their 457 deferred compensation account managed by ING. You may contribute to a 403(b) account and the 457 deferred compensation plan at the same time. Contribution limits are adjusted annually. Contributions can be 100% of salary up to $17,500 for 2013 with an additional $5,500 for 2013 for individuals over age 50.
Cash Match Plan
This program is an employer-paid cash match program for salaried state employees who are making contributions to a 403(b) account or 457 deferred compensation plan. The employer match amount if 50 percent of the employee's contribution or $20 per pay period, whichever is less. Example, if the employee contributes $20 per pay period to a 403(b) or 457 account, the cash match would be $10 per pay period. If the employee contributes $40 per pay period, the cash match would be $20 per pay period. If the employees contributes $50, $60, etc, the cash match would be $20 per pay period. If you are contributing to both a 403(b) and 457 account, you are eligible for only one cash match.