Deferred Compensation Plan In Retirement In Illinois
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The State of Illinois Deferred Compensation Plan is a supplemental retirement program for State employees. Contributions to the Plan can be made on a pre-tax or Roth basis through salary deferrals. The combined pre-tax and Roth contributions cannot exceed the limit set by the IRS.
WHat Is DRoP? The Deferred Retirement Option Plan (“DROP”) is a voluntary program that allows you to have your monthly pension benefit deposited in an interest-bearing account while you continue to work in your current department and receive your salary and benefits as an active employee .
Retirement withdrawals from pre-tax contributions and earnings are subject to federal income tax. The State of Illinois does not tax retirement income from the Deferred Compensation Plan if taken in ance with plan provisions, at full retirement age, as a legal resident of Illinois.
2025 Elective Deferral Limits $23,500.00 This dollar limit is the maximum amount of elective deferrals that can be made to an eligible 457(b) plan by a participant.
Eligibility. You may retire at: Age 60, with 8 years of service credit. Any age, when your age (years & whole months) plus years of service credit (years & whole months) equal 85 years (1020 months) (Rule of 85).
The Deferred Retirement Option Plan, commonly known as DROP, is a retirement benefit that allows Tier 1 public safety members who are already eligible for retirement to continue working while collecting a salary and accumulating monthly pension benefits that will become available upon retirement.
The regular yearly contributions amount for Deferred Compensation will increase from $23,000 to $23,500. The catch-up contribution limit that generally applies for employees aged 50 and over remains at $7,500 for 2025 for a combined maximum contribution limit of $31,000 in 2025.
The maximum total annual contribution for all your IRAs combined is: Tax Year 2024 and 2025 - $7,000, if you're under age 50 / $8,000 if you're age 50 or older.
View 2024 contribution limits. More details on the retirement plan limits are available from the IRS. The normal contribution limit for elective deferrals to a 457(b) deferred compensation plan is increased to $23,500 in 2025. Employees age 50 or older may contribute up to an additional $7,500 for a total of $31,000.
