Deferred Compensation Plan FAQs

Q: What is Vantage Credit Union’s Deferred Compensation Plan?
A:
Our Deferred Compensation Plan (DCP) is a pre-tax payroll deduction plan designed to help school district employees save for retirement. Our plan works in your favor because it helps you build cash for retirement, while reducing your taxable income. And, our 457 tax-deferred DCP is federally insured up to $250,000 per account.

Q:  Isn’t a 457 the same as an annuity?
A:
  No. Although our plan has similar characteristics of an annuity, it's quite different than an annuity. Annuities are not insured and are sold by brokers and insurance agents. Vantage Credit Union’s 457 DCP is federally insured up to $250,000 per account with someone you can trust—your credit union. Annuities often have surrender or management fees associated with them. Our 457 DCP has no surrender or management fees. Annuities often have either (or both) front- or back-loading fees. Our 457 DCP has neither front- or back-loading fees.

Q:  Do I have investment choices for my 457 DCP?
A:
  You can choose between two Vantage Credit Union 457 DCP options. Option I has an annual fixed rate that is locked in from January 1 to December 31. The rate can change annually. Option II pays a rate that can change monthly. View current DCP rates.

Q:  How much money can I save each year?
A:
  Contribution limits are changing annually as IRS rules are changed. Call us to verify the contribution limit. All contributions are automatically deducted from your pay and deposited to your DCP account before taxes.

Q:  Does Vantage Credit Union’s 457 DCP offer a catch up provision?
A:
  Yes! Our plan offers two catch up provisions. First, if you’re age 50 or older, you can add an additional $5,000 to your regular annual contribution limit. Second, if you’re in the last three years prior to your normal retirement, you can double the annual contribution limit. Please call us for more details.

Q:  How are 457 funds paid out?
A:
  Distributions are available upon severance from service. You can also elect to defer payout until you reach age 70 1/2. You may receive a full or lump-sum payment or annual payments, as long as the payments don't exceed your life expectancy.

Q:  How do I sign up for Vantage Credit Union’s 457 DCP?
A:
  If you’re employed by one of the participating school districts, you can sign up for the plan today! Just ask your employer whether they participate. They should have the necessary paperwork available to enroll in our 457 DCP. Or, you can call us at 314.298.0055 or 800.522.6009 to request the enrollment form, or visit any of our branch locations.

For applicable fees, terms and conditions, please contact an investment services representative for a full disclosure.

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