457(B) Deferred compensation plan

When you retire, you may need income for 20, 30, or more years. While the 403(b) Base Retirement Program and Social Security may help cover basic living expenses, participating in a deferred compensation plan may help add to your retirement savings.

MSU offers a voluntary 457(b) Deferred Compensation Plan (DCP), which is available to regular benefits eligible MSU employees working at least half-time (50% or more) for at least nine continuous months. This plan is funded entirely by employee contributions, and the employee can choose either a pre-tax or after-tax Roth basis. Your contributions are deducted from your salary either before taxes are taken out (pre-tax), or after taxes are withheld (after-tax Roth).

You also pay no taxes on the earnings in your 457(b) Deferred Compensation Plan until you withdraw funds from the account if funded as pre-tax, or you pay no taxes on the withdrawal if funded as after-tax Roth (only if the withdrawal is after the employee turns age 59 1/2 AND has been contributed for at least five years). Learn more about after-tax Roth at the Roth and SECURE 2.0 Act FAQ.

You may enroll in this plan and change or cancel the amount of your contribution at any time.