Deferred Compensation FAQs

The County of Sonoma’s 457 Deferred Compensation Plan is a retirement savings program offered for County employees and managed by Nationwide. This voluntary plan allows employees to save for retirement, pre and/or post tax, in addition to their SCERA pensions. The County of Sonoma’s Deferred Compensation Plan goals and objectives are set forth in the Plan Investment Policy Statement and the Plan Documents. These documents are used to guide the County’s Deferred Compensation Committee in effectively monitoring and managing of the investments of the Plan.  The Committee meets on a quarterly basis. 

Full Time employees and employees with 0.5 FTE (20 hours) or greater are eligible to enroll in the voluntary 457 plan options.  

**Employees that work less than .5 FTE or Extra-help, participate in a 457 PST/OBRA account.  These employees contribute 3.5% of their bi-weekly salary to the account and the County contributes 4% in lieu of social security.  After their first paycheck, extra help employees will need to create an online account to set up and manage their beneficiaries. To set up online account access, go to the dedicated website at www.sonoma457.com.

Employees may enroll by going to www.sonoma457.com and clicking the “Enroll Now” button. Once your 457(b) account has been set up, employees are responsible for adding their beneficiary information to their accounts. To add beneficiaries login into to your Sonoma457.com account, go to the View Account tab to manage your beneficiaries. For more information on your online account management, please see our Forms and Information page.

*Please note, this option is only available if you do not already have or have had another type of account. If you have or previously had a PST/OBRA or have a 401A, to enroll in the 457 for the first time, you need to login to your online account or create online access. Once logged in, you can enroll by selecting the Manage Account tab and then select Enroll in another plan under the Other Actions section.

You may also enroll in a 457(b) plan by completing a paper Participation Agreement (Enrollment Form). If enrolling with a paper form, please send the completed form directly to our Deferred Compensation analyst at ACTTC-Deferred-Comp@sonoma-county.org.

Based on current IRS policy, employees may contribute up to $23,000 per year towards their 457 plans through payroll deductions. The cap increases to $30,500 for employees who are 50 years old or older.

The minimum contribution is $10 per paycheck. 

• 457 Roth contributions are made with after-tax dollars.
• Traditional 457 contributions are made on a pre-tax basis and taxes are paid when a distribution is taken. 
• The County accepts contributions up to the annual IRS limits for both pre and post tax accounts.

Your distribution is income tax-free if you are eligible for a distribution from your Plan. To be eligible to withdraw your Roth contributions and earnings you must have held the account for at least five tax years and one of the following conditions apply:

• You are at least age 59 1/2; or
• You become disabled; or
• You pass away (in which case, your beneficiaries will take a withdrawal)

Employees who are within 3 years of normal retirement age and who under-contributed in prior eligible years, may increase their 457 contribution up to $46,000 (for 2024), for 3 consecutive years. Employees may only enroll in a 3-year special catch-up one time.

For additional information, please contact Christy Kazarian at ACTTC-Deferred-Comp@sonoma-county.org.  

457 and 401(a) loans allow employees to borrow from their account. Employees can borrow up to 50% of their balance or $50,000, whichever is less. Any amount borrowed will be paid back, including interest, through the employee's checking or savings account directly to Nationwide within 5 years.  If the employee uses the loan as a qualified first time home buyer, the repayment plan is extended to 15 years. All interest rates are based on the Prime Lending Rate and interest payments are paid back to the employee's account.

To apply for a 457 or 401(a) Loan:

• Call 1 (866) 242-5048 or
• Login to your account on sonoma457.com and go to manage account

Employees can request to have certain retirement accounts rolled into the County of Sonoma’s Deferred Compensation Plan. Use the Incoming Assets Form to transfer funds from other eligible retirement accounts.

The County of Sonoma’s 401(a) Defined Contribution Plan is a retirement savings program set up by the County through Nationwide. It is a means for your employer to help you save towards retirement, in addition to your SCERA pension. Only certain bargaining units are eligible for enrollment and contribution rates vary by union. To see if you are eligible for a 401(a) plan and your contribition rates, review your applicable Labor Agreement or Salary Resolution on HR's website. 

If you are in an eligible bargaining unit, your account will be set up automatically by payroll after your first paycheck is issued. Eligble employees are responsible for adding and managing their beneficiaries, which can be done by setting up an online account at www.sonoma457.com. Once your account has been set up, you can go to the View Account tab to manage your beneficiaries. For more information on your online account, please see our Forms and Information page.

Some of the advantages of having a 401(a) plan are:

• The contributions do not count towards the 457(b) plan IRS limits
• Taxable income does not increase
• Earnings may grow tax-deferred until they are withdrawn
• Employees decide which investment options is the best fit for their needs
• Another savings vehicle to help prepare for retirement

For more information about the 401(a) plan, please reach out to Christy Kazarian at ACTTC-Deferred-Comp@sonoma-county.org. You may also reach out to your department payroll clerk.   

Upon separation from the County, employees can do the following:

• Elect to keep monies in the Plan until retirement
• Rollover funds to another financial institution
• You can take funds as a distribution