Plan Types

457(b) Traditional Plan

The 457 Traditional Plan is available to any Town of Gilbert employee. You may elect to make contributions of any amount per pay, up to the maximum limit allowed under the Internal Revenue Code, and adjust the amount that you contribute at any time. Your contributions are made with pre-tax dollars and any earnings grow tax-deferred. You will pay ordinary income taxes when you withdraw from your 457 Traditional Plan account.

457(b) Roth Plan

A Roth 457(b) Plan is also available to any Town of Gilbert employee. The 457(b) Roth Plan allows you to pay income tax now so that the growth in your account can be withdrawn tax free. You won’t have to pay any income tax on your withdrawals in retirement if certain conditions are met. You’ll enjoy tax-free withdrawals – as long as you’re at least 59½, and do not take withdrawals from your Roth account for at least five years after your first Roth contribution is made to the plan.

You can choose to allocate part or all of your salary deferral to the Roth or all or part of your salary deferral to your traditional 457 pre-tax account.

Is a Roth 457 (post-tax) account right for you?

Only you can answer that question. But you may want to consider making Roth 457 contributions if you:

  • Think that taxes will be raised before you retire and want to take advantage of potential tax-free withdrawals
  • Expect to be in a higher tax bracket when you retire
  • Are younger, with many years until your retirement

401(a) Plan

The 401(a) is available to full-time employees at the Town of Gilbert. You may only enroll in the plan during the first 90 calendar days of your employment. After that time, you are no longer eligible to enroll in the plan. Contributions will not be subject to federal or state income taxes at the time the contribution is made. You will pay ordinary income taxes when you withdraw from your 401(a) Plan account. Distributions made prior to 59½ may be subject to a 10% penalty tax. Surrender charges may apply.

Enrollment choices:

  • Ongoing payroll deferral (1% - 25%)
  • Final sick/vacation lump sum (0 – 100%)
  • Once you make your elections, they cannot be changed


Get the help you need

Talk with your Retirement Specialists if you need help.


Neither Nationwide® nor its representatives may offer tax or legal advice. You should consult your own counsel before making any decisions.

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