457 (b) Plan
The Santa Clara VTA 457(b) Plan allows you to save for future retirement. The plan is administered through Empower. Plan highlights include:
Contribution Flexibility
You can choose between deferring your income on a pre-tax basis, after tax basis (Roth), or both, as long as your total contributions do not exceed the IRS annual limit ($24,500 for 2026). There are no income restrictions for contributing to a Roth. Roth contributions are done on an after-tax basis, so you will not pay taxes on your principal or any gains. There are also catch-up provisions that employees can enroll in:
- Employees who are Age 50 or older can contribute an additional amount above the IRS annual limit (+$8,000 for 2026 for a total $32,500).
- Employees who are Age 60-63 can contribute an additional amount above the IRS annual limit (+$11,250 for 2026 for a total $35,750).
- Employees who are within three years of their normal retirement age, may be eligible to contribute up to double the annual IRS limit, depending on unused contribution amounts from prior years (up to +$24,500 for 2026 for a total $49,000). This is known as the Pre-Retirement/Special catch-up provision.
Investment Flexibility
Santa Clara VTA offers a wide arrangement of funds for you to choose from, including target date funds (automatically adjusted based on your projected retirement year), low-cost index funds, and actively managed funds.
Loans
If you need to borrow money, for any reason, you can take a loan from your vested balance. You can borrow 50% up to $50,000 (whichever is less) and you pay yourself back the interest. Active employees must have a minimum balance of $2,000 to qualify.
See the summary plan description for additional details or login to empowermyretirement.com to sign up for the plan today.”