Take advantage today

All Anne Arundel County Public School employees, including temporary employees and substitute teachers, are eligible to begin contributing upon date of hire.

Starting early has its advantages

Employee contributions
As much as 100% of your annual includible compensation (i.e., the amount of taxable wages and benefit received from your employer), up to the maximum IRS contribution limit. You may change the amount you contribute to the plan as often as your plan allows.

2022 contribution limit

Your contribution limit for 2022 is $20,500.

Catch-up contributions 

You might be eligible to contribute additional catch-up amounts if you meet the following conditions: 

2022 catch - up contributions

> $20,500 if you have undercontributed in prior years and are within the last three taxable years before ending the year before the year you attain normal retirement age as specified under the plan, or

> $6,500 if you are age 50 or older.

If you are eligible for both, you cannot combine the two catch-up amounts, but may contribute up to the higher amount. Please consult a tax professional to determine which catch-up contribution option would work best for your financial situation.

Stop/change contributions
You may change your contribution amount or discontinue contributing at any time and resume contributing again later, subject to your AACPS plan and any administrative requirements. In the meantime, your account will continue to grow on a tax-deferred basis. Please allow one month’s notice for processing.

For 457(b) plans, deferral change requests must be submitted by the last day of the prior month, in which the deferral change request is effective.

Vesting
You are always 100% vested in your own contributions.

Accessing your money before retirement

Your plans were established to encourage long-term savings. 
A 457(b) plan has more stringent withdrawal restrictions while you are employed, but less stringent rules after severance from employment, and is not subject to a 10% federal early withdrawal tax penalty except on amounts rolled over from other non-457(b) eligible retirement plans.
 

The following are distribution events for your 457(b) plan:

  • Attaining age 72 (age 70½ if born before July 1, 1949) (if your plan allows in-service distributions)
  • Retirement or severance from employment
  • Your death
  • Unforeseeable emergencies
  • Minimum distribution required at reaching age 72 (age 70½ if born before July 1, 1949) or upon retirement, whichever is later

Bear in mind that income taxes are payable upon withdrawal. 
 

Loans
Loans are not available in the 457(b) plan.