When you retire or separate from service, you may be paid a lump sum for the value of your accumulated sick and/or vacation time. Why not arrange to have that sum invested through your retirement account? You can help your account grow, and may delay paying federal income taxes on the funds until you begin taking withdrawals.
If the total value of your lump sum payment is more than the annual contribution limit, the Traditional Catch-up provision may allow you to contribute more than the annual maximum to your 457 plan account.
Of course, investing involves market risk. You could lose money. Your Nationwide Retirement Specialist can help you understand market risk and strategies that may help you deal with it. Please keep in mind that Retirement Specialists cannot offer investment, tax or legal advice.
Get the help you need
Talk with one of our Retirement Specialists to learn more about transferring your separation pay to your account or review the Separation Pay Options brochure (PDF).