State of Missouri Voluntary 457(b) Retirement Savings Plan

MO Deferred Comp is a 457(b) retirement savings plan available to both full- and part-time State of Missouri employees, including those at Missouri State University. It’s designed to help you build a more secure financial future by contributing pre-tax or after-tax (Roth) dollars toward retirement.

In addition, Missouri State University offers a 403(b) retirement savings option, also available to full- and part-time employees, giving you the flexibility to choose the plan—or combination of plans—that best supports your financial goals.

Below, you’ll find key information about MO Deferred Comp’s 2025 contribution limits, investment choices, and how to get started.

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📈 2025 IRS Annual Contribution Limits

Here’s how much you can contribute to your deferred comp account this year:

• Under age 50: $23,500
• Age 50 and over (standard catch-up): $31,000
• Age 60–63 (special 3-year catch-up): $34,750
• Pre-retirement catch-up (if eligible): $47,000

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💡 Contribution Options

With MO Deferred Comp, you can save using either:

• A flat-dollar amount, or
• A percent-of-pay contribution (which typically grows as your salary grows)

You can also choose pre-tax contributions (reduce taxable income now, taxed when withdrawn) or Roth contributions (taxed now, withdrawn tax-free in retirement).

🚨 Pro Tip: Saving with a percent-of-pay method may help increase your savings automatically over time.

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💰 Additional Features

• You may roll money into your account from eligible retirement plans like 457(b), 401(a), 401(k), 403(b), traditional IRA, or MOSERS BackDROP (note: Roth IRA funds cannot be rolled in).
• If your agency permits, you can contribute comp time pay into your account at any point in your career.

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📊 Investment Options

MO Deferred Comp offers a range of options to match your comfort level and retirement goals:

1. Target Date Funds
   – Automatically adjust risk levels as you near retirement.

2. Stable Income Fund
   – A conservative, cash-like option focused on capital preservation.

3. Self-Directed Brokerage Account
   – Hands-on investors can access thousands of mutual funds, stocks, and bonds. No account setup fee (restrictions apply).

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🚪 Withdrawing Your Money

While Employed:

• Withdrawals are generally not permitted unless you:
  • Experience an unforeseeable emergency
  • Have a balance of $5,000 or less and haven’t contributed in 2 years
  • Are age 70½ or older (limited to two withdrawals per calendar year)

After Leaving State Employment:

• Choose a full/partial withdrawal, recurring payments, or rollover to another qualified plan.
• Required Minimum Distributions (RMDs) begin by April 1 after the year you turn 73 (Roth contributions excluded).
• Balances under $1,000 may be automatically distributed if inactive for two years.

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⚠️ Taxes & Penalties

• 457(b) funds can be withdrawn penalty-free after leaving state employment.
• Withdrawals are subject to federal and state income tax, unless rolled over.
• A 10% penalty may apply to 401(a) state incentive account withdrawals made before age 59½.
• 20% federal tax is automatically withheld from non-rollover withdrawals.

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🧠 Need Help or Have Questions?

Get to Know MO State Comp Flyer

Reach out to your local financial education professional for one-on-one guidance:

Jesse Stewart
Financial Education Professional
📞 573-644-1265 or 800-392-0925
📧 jesses@mosers.org
🌐 modeferredcomp.org

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Taking charge of your retirement savings now can help you retire confidently later. Whether you’re 30 years from retirement—or just 3—MO Deferred Comp and MSU’s 403(b) plan offer flexible tools to help you reach your long-term financial goals.

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