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Resources for the Madison Community
Madison stands with the families of Abundant Life community. This page is dedicated to connecting victims and the broader community to resources and accurate information about the tragic events that happened on December 16.
Deferred Compensation 457(b) Plan
The City of Madison offers an optional Deferred Compensation 457(b) Plan to permanent employees. The City does not make matching contributions toward the 457(b) Plan. Because there is no defined enrollment period, eligible employees may enroll in the 457(b) Plan at any time during employment with the City. The standard minimum contribution is $25.
Wisconsin Retirement System (WRS) annuities generally replace only a portion of your wages, so many employees use a Deferred Compensation Plan to fill in the income gap. 457 Plans are primarily set up for public employees to replace private sector 401(k) Plans. Both Traditional and Roth 457 options are available to City employees:
- Traditional 457 Plan contributions are deducted from your pay before taxes are collected. With a Traditional 457, contributions and earnings are taxed upon distribution from the account.
- Roth 457 Plan contributions are deducted from your pay after taxes are collected. With a Roth 457, contributions and earnings are not taxed upon distribution from the account.
Prior to enrolling in a Deferred Compensation Plan, consider discussing with a 457 Plan representative whether Traditional 457 and/or Roth 457 contributions may better fit your individual needs.
Employees have the opportunity to participate in the 457(b) Plan with two separate plan administrators. One plan administrator is MissionSquare and the other plan administrator is Fidelity. Both plan administrators offer a variety of investment options for employees. To begin contributing to a 457(b) account, visit the MissionSquare or Fidelity pages to find the appropriate plan enrollment form and to find information on scheduling an appointment with a plan representative to discuss enrollment/investment options.
Withdrawals can only be made from your 457(b) account after separation from employment with the City of Madison, except in narrowly defined emergency situations (please see information below on emergency withdrawals).
Investment Policy Statement for City of Madison 457 Deferred Compensation Plan
Fidelity & MissionSquare Maximums (2025 Plan Year)
Both Fidelity and Mission Square have a maximum yearly contribution, which is regulated by Internal Revenue Code.
| Age | $ per year |
|---|---|
| if you are age 49 or under | $23,500 |
| if you turn age 50 or over in 2023 | $31,000 |
| if you are using the Catch-Up Provision | $47,000 |
Fidelity & MissionSquare Maximums (2024 Plan Year)
Both Fidelity and Mission Square have a maximum yearly contribution, which is regulated by Internal Revenue Code.
| Age | $ per year |
|---|---|
| if you are age 49 or under | $23,000 |
| if you turn age 50 or over in 2023 | $30,500 |
| if you are using the Catch-Up Provision | $46,000 |
Emergency Withdrawals
A provision in your deferred compensation plan allows withdrawals in the event of an unforeseeable emergency. This withdrawal is only permitted if a genuine emergency exists which can only be met by such a withdrawal. Emergency withdrawals are regulated by Internal Revenue Code; IRS regulations, and not City policy, determine whether a given event meets the threshold for a genuine emergency. Learn more about Deferred Compensation Emergency Withdrawals.
More Information
For more information, please see the Employee Benefits Handbook.