- Deferral limits will remain the same for 2021. The IRS announced that pension limitations governing 457(b) plans will remain the same for 2021 as the increase in the Consumer Price Index was not sufficient to meet the statutory thresholds for its adjustment. Therefore, the elective deferral (contribution) limit for employees who participate in the Deferred Compensation Plan will stay at $19,500. The additional catch-up contribution limit for employees aged 50 and over will remain at $6,500. The Special Catch-Up limit will remain at $39,000.
State of Illinois Deferred Compensation Plan (“Plan”) is a supplemental retirement plan for State employees. Contributions to the Plan can be made on a pre-tax or after-tax (Roth) basis through salary deferrals. However, the combined pre-tax and Roth contributions cannot exceed the IRS limit.
In 2021, employees are allowed to defer up to $19,500. Employees over age 50 are allowed to defer up to $26,000. Employees enrolled in Special Catch-Up are allowed to defer up to $39,000.
Pre-tax contributions, together with any earnings, accumulate tax-deferred until the employee terminates service, dies, or incurs unforeseeable financial hardship. Once distributions begin, the distributed monies are fully taxable as ordinary income for federal tax purposes. The funds are never taxed by the State of Illinois.
Roth contributions, together with any earnings, qualify for tax-free distribution when the initial after-tax contributions to the account are at least 5 years old and the employee is age 59 ½ or older, dies, or becomes disabled.
To review your account or make investment changes, you can access your account via the
T. Rowe Price website.
Enroll Now and Build for Your Financial Future. Contact your Agency Liaison or the
Deferred Compensation Office at the address and numbers below.
Questions and answers to address the most common inquiries about the Plan.
Examine descriptions of the funds available in the
Plan with an illustration of their share price stability versus their return potential.
Access up-to-date, personal account information, including current share prices for all funds, via the T. Rowe Price website. Fund prices are shown under the 'Investments' tab. Registration required for first-time users.
Determine the investment results for each of the funds and their appropriate benchmark indexes.
State of Illinois Deferred Compensation Plan form or newsletter now using
Reference Manual for
State of Illinois Deferred Compensation Plan Liaisons
Review a comprehensive, easy to understand guide for the
Plan or the Summary Plan Description.
Whether retiring, moving to a job outside state government or leaving state service to pursue family or educational goals, you may decide how you want your
State of Illinois Deferred Compensation Plan account distributed. You can now contact T. Rowe Price at 888-457-5770 and request a distribution over the phone. Download a
W-4P Withholding Allowance Certificate,
Safe Harbor Notice 2014-74, or the
Direct Deposit Form using
Deferred Compensation Office
801 S. 7th Street
PO Box 19208
Springfield, Illinois 62794-9208
800-442-1300 (Toll Free)