You have an opportunity to participate in the City of Atlanta Deferred Compensation Plan (in accordance with Section 457 of the Internal Revenue Code).
The plan lets you defer a portion of your salary and receive its value when you retire. You can set aside pretax contributions or Roth after-tax contributions.
Please note: this plan is not a savings account. You can only defer salary into the account; you cannot add additional funds to the account.
You may wish to investigate the plan if:
If you wish to participate in the plan, please contact Empower at 800-701-8255. All employees are eligible to participate. The plan is entirely voluntary. Employees may only participate with one company at a time.
The amount of current earnings deferred will not be considered as income for tax purposes until its value is paid, as provided in the plan. At that time, it will be taxable as ordinary income.
By deferring payment of income taxes until you receive the value of your account as a retirement benefit, you can set aside more of your current earnings for retirement. Therefore, you may reduce the total amount of income taxes paid in your lifetime and accumulate a larger sum for retirement under the plan than if you had invested after-tax dollars outside the plan.
You may stop your contributions at any time. If you wish to increase the amount of your deferral, you may do so at any time, subject to the legal maximum. If necessary, you may increase, decrease, or reinstate your deferral amount at any time. If you want to make deduction changes, contact the Department of Finance – Payroll Division or the company with whom you are participating.
Your account will begin earning investment income on the date your deferral is deposited into your account with the provider.
If you experience an Unforeseeable Financial Hardship, as defined by the IRS, which is beyond your control, you may elect a distribution of all or portion of your Deferred Compensation Account. Evidence is required to be sent with a written request for withdrawal. For details, call the company with whom you are participating.
Note: Deferred Compensation does not affect your City Retirement or Social Security. For federal tax purposes, your W-2 will reflect only your adjusted gross income.