What are the advantages of participating in the DISD 457(b) FICA Alternative Plan?
The 7.50% contribution to the DISD 457(b) FICA Alternative Plan will be deducted from your paycheck on a pre-tax basis, so you are not taxed on the gross amount. Funds will remain tax sheltered until they are withdrawn. Unlike Social Security withholding, if your employment with DISD ends, you may withdraw funds subject to the Internal Revenue Code distribution guidelines under a 457(b) Deferred Compensation Plan. Please note that contributions to the DISD 457(b) FICA Alternative Plan are not eligible for TERRP matching.
