The Howard County Deferred Compensation Plan is available to all employees of Howard County and the Howard County Public School System. The 457(b) and Deemed IRA deferred compensation retirement plans are retirement savings options that allows county employees like you to put aside additional money from each paycheck to supplement any other pension benefit your employer offers.

About the plans

The plans work by providing additional funds to supplement your pension. This comes from a convenient, automatic payroll deduction from your paycheck. Howard County Deferred Compensation Plan offers four contribution options:

Pretax 457(b) deferrals

Roth 457(b) deferrals

Deemed Traditional IRA1

Deemed Roth IRA1

Why should you participate?

Experts say you may need 70% to 90% of your income to maintain your standard of living in retirement. If you think you might have a gap between what you have and what you need, participation in The Howard County Deferred Compensation Plan could help you resolve that gap, all while gaining certain tax advantages.

Start early to reach your goals. Our plan offers competitive fees and investments: 

  • Low annual fee of 0.03% or $3 per $10,000 
  • Low-cost investment options
  • Self-directed brokerage option

457(b) and Deemed IRA plans

457(b) pretax or Roth deferrals

Participants can work toward their retirement goals while benefiting from tax advantages by contributing a portion of their salary to the 457(b) plan through payroll deduction. 

Why this option may make sense for you:

  • Contribution limits are higher 
  • No income limits 
  • Unforeseen emergency withdrawal available 
  • For pretax contributions only: Withdraw at any age with no tax penalty upon separation; loan provisions available

457(b) contributions

  • $10 per pay period (minimum) 
  • 2025 maximum limit: Pretax and Roth combined $23,500 
  • Catch-up limits: Age 50+ catch-up limit: Pretax and Roth combined +$7,500 ($31,000 total) OR Age 60-63 catch-up limit: Pretax and Roth combined +$11,250 ($34,750 total) OR Traditional/Special catch-up limit:2 Pretax and Roth combined +$23,500 ($47,000 total)

Deemed Traditional and Roth IRA contributions:

Similar to the 457(b) plan, Howard County simplifies saving by offering payroll deduction contributions to the Deemed IRA plan. However, participants can contribute an increased portion of their salary beyond the 457(b) limits to the plan to work toward their retirement goals.

Why this option may make sense for you:

  • Simplifying the management of retirement savings 
  • Increased savings beyond the standard 457(b) limits

Deemed IRA contributions
Maximum contribution limit for all your IRA accounts combined: 

  • 2025 maximum limit: Traditional and Roth combined $7,000 
  • Age 50+ catch-up limit: Traditional and Roth combined 
+ $1,000 ($8,000 total) 
Deemed IRA tax-deduction income limits Deemed IRA Roth income limits
Single or Head of Household
Income less than $77,000: Full deduction up to the limit Income less than $146,000: Contribute up to the full limit
Income greater than $87,000: No deduction Income greater than $161,000: Cannot contribute
Married Filing Jointly or Qualifying Widow(er)
Income less than $123,000: Full deduction up to the limit Income less than $230,000: Contribute up to the full limit
Income greater than $143,000: No deduction Income greater than $240,000: Cannot contribute
Married Filing Separately
Income less than $10,000: No deduction and cannot contribute to a Roth account
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The Howard County Deferred Compensation Plan is dedicated to transparency in fees and the cost of participation in the Plan.

The Plan charges an annual asset fee of 0.03% ($3 per $10,000). This is charged against all plan assets under management on a monthly basis and is used to cover the Plan’s administrative costs. Your quarterly statement will indicate this fee. The following fees are applicable to individuals who elect these services:

  • Loan application fee: $25
  • Annual loan maintenance fee: $50
  • Self-directed brokerage account: $50 initial fee and transaction fees/commissions
  • Managed account services program fees

Yes, for both Howard County and Howard County School Employees.

Note: Howard County School Employees must contact their Nationwide Deferred Compensation Specialist to set up a 457(b) Roth or Deemed IRA account.

Allows a participant, for 3 years prior to the normal retirement age, to contribute the lesser of: 

  • The elective deferral limit ($23,500 in 2025) 
  • The elective deferral limit plus the amount of the elective limit not used in prior years (allowed only if not using age 50 or over 60-63 catch-up contributions) 

Eligibility:

  • Must be within 3 years of your normal retirement age (NRA) 
  • NRA cannot be earlier than the age at which employees are eligible to retire with full retirement benefits from the employer’s defined benefit plan or age 65, whichever is earlier; and cannot be later than age 70½; for qualified public safety officers, NRA can be between age 40 and 70½

Calculate underutilized contributions:

  • Add up the difference between the maximum allowable contributions and the actual contributions you made in previous years. 
  • Determine the lesser amount: 
    • Your special catch-up contribution limit is the lesser of: 
    • Twice the annual limit for the current year (e.g., $47,000 for 2025) 
    • The annual limit for the current year plus your underutilized contributions 

For Howard County Government Employees: Log in to your account and click Update your contributions.

For Howard County Public School Employees: Sign in to your Workday homepage to change your Existing Contributions from the drop-down menu.

Yes, you may roll over other eligible retirement plans into the Plan. Money that has been rolled into the Plan is always available to you while you work for the County. Reach out to Nationwide or your Deferred Compensation Specialists to discuss whether your outside retirement accounts are eligible for consolidation.

For 457(b) Pretax and Roth accounts, you may withdraw after separation from county or school service or after you have reached age 59½.

For Deemed IRA Traditional and Roth accounts, you may withdraw funds at any time.
  • For 457(b) and Deemed IRA accounts:
    • Subject to federal and state income taxes

Withdrawals are potentially tax-free if the following requirements are met for a qualified withdrawal:

  • For 457(b) Roth accounts:
    • If your account was established more than 5 years ago (the 5-year period begins Jan. 1 of the year you first make a Roth contribution into the plan) and
    • You have separated from service, or become disabled, or died.
  • For Deemed Roth IRA accounts:
    • You can withdraw your contributions at any time without penalty or taxes.
    • There are exemptions to this. Review IRS Publication 590-B at irs.gov for the entire list of exemptions.

Before taking a withdrawal, you should consult with your tax professional to learn how the withdrawal could affect you and the taxes you may owe.

[1] Deemed IRA contributions are made on an after-tax basis; for a traditional Deemed IRA contribution, you may qualify for a tax deduction.
[2] The Traditional/Special catch-up may be used 3 consecutive years before Normal Retirement Age depending on your years of service and contribution rates. Contact your Nationwide Deferred Compensation Specialist to review this option.