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DEFERRED COMPENSATION & 457 (B) ACCOUNTS

Retirement savings options for employees of participating government agencies

Deferred Compensation & 457(b) Accounts

Retirement savings options to supplement your pension or social security benefits.

Building a healthy nest egg for yourself is one of your most important personal financial goals.
It’s also just one of the great benefits of an Advantis 457(b) account. Advantis 457(b) accounts offer competitive interest rates to employees of participating government employers. The 457(b) account can be an ideal supplement to your pension and Social Security benefits. And with no setup fee, withdrawal fee or maintenance fee, it provides a huge value.

The following employers offer 457(b) or Deferred Compensation accounts to their employees through Advantis Credit Union:

Home Forward (formerly Housing Authority of Portland)
Tualatin Valley Fire and Rescue

Traditional deferred compensation option
You can opt for a traditional deferred compensation account, which lowers your taxable income by deferring a portion of your wages each pay period until withdrawal.*

Roth option
If your employer’s plan permits, you may also contribute after-tax funds to a Roth account. Since contributions are made with after-tax dollars, qualified distributions from a Roth are tax-free.* You can contribute to both account options and allocate the contributions in any proportion up to the annual maximum set by the IRS.

Contribution amount
The IRS has set the maximum permitted contribution amount to your 457(b) account in 2021 at $19,500. This limit may change annually based on cost-of-living adjustments. Your employer sponsors and administers your plan, and will both set minimum contribution limits and determine when you can change your contribution amounts or switch investment providers.

Safe and insured
Your Advantis 457(b) account is guaranteed to not lose value due to market fluctuations, and is separately insured up to $250,000 by the National Credit Union Administration (an agency of the Federal government).

Learn More and Get Started

Learn more: Guidelines View Rates See Rate History

Get started: Contact a deferred compensation specialist by phone 503-785-2528 or contact us.

What kind of rate does Advantis offer on its 457(b) deferred compensation accounts?

Advantis offers a tiered rate on each separate 457(b) deferred compensation account. Once a balance tier is met, the interest rate for that tier applies to all funds in an individual 457(b) account.

If I roll over funds from another retirement plan into my 457(b) plan and deposit those funds at Advantis, will the funds be added to my existing deferred compensation account at Advantis?

No. Rollover funds must be placed into a separate 457(b) deferred compensation account from the funds you contribute to your 457(b) plan with your current employer.

Will my 457(b) account funds be counted together with any funds that I roll over into a separate account in order to determine whether a balance tier has been met?

No. Balance tiers are determined on the individual account level. Because rollover funds must be kept separate from your regular 457(b) contributions, we can’t combine the balances of your 457(b) deferred compensation accounts in order to determine whether a balance tier has been met.

Will my 457(b) deferred compensation account funds be counted together with my 457(b) Roth account in order to determine whether a balance tier has been met?

No. Balance tiers are determined on the individual account level. The contributions to your 457(b) Roth are deposited into a separate 457(b) deferred compensation account from your deferred compensation contributions.

How are my Advantis 457(b) accounts insured?

The funds in all your Advantis 457(b) accounts are aggregated together and separately insured by NCUA from your other accounts at the credit union, up to a total of $250,000. The coverage available through NCUA is called share insurance. The following example helps illustrate how share insurance is calculated on 457(b) accounts.

Joe has an individual membership with Advantis with the following accounts and balances:

Savings	$2,000
Money Market	$100,000
457(b) Def. Comp	$160,000
475(b) Roth	$10,000
475(b) Roll Over	$10,000
Total of all accounts	$282,000

To determine the amount of share insurance on Joe’s 457(b) accounts, we add his deferred compensation, Roth and rollover accounts together for a total of $180,000. Because Joe’s 457(b) accounts are insured separately from his other credit union accounts, the funds Joe has on deposit in his savings and money market accounts don’t affect the share insurance coverage on his 457(b) accounts. Since the total in all of Joe’s 457(b) accounts is under the $250,000 share insurance limit, his 457(b) accounts are fully insured.

Please contact Advantis at 503-785-2528 if you have additional share insurance questions or would like assistance in calculating the share insurance coverage on your credit union accounts.

*Distributions from your traditional deferred compensation account upon retirement, severance of employment or unforeseeable emergency are subject to federal and (if applicable) state income tax. Distributions from a Roth account upon retirement, severance of employment or unforeseeable emergency are excluded from your gross income if your first Roth contribution occurred at least 5 years before the withdrawal and you have experienced one of the following: turning 59 ½ years of age, death or disability. All other withdrawals from a Roth are partially taxable. Federally insured by the NCUA..

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