It’s easy to participate in your employer’s 457(b) deferred compensation plan. You can get started right away.
- Use our EZ Enrollment form and your contributions will be defaulted to a New Mexico LifeCycle Portfolio, a pre-designed investment fund that closest matches the year you turn age 65.
- Use our full Participant Agreement to select your own investment options from the Plan’s fund lineup for your contributions.
Not ready to sign up yet? Get more info about how deferred comp works and what your options are first.
If you’re not already investing for retirement, it’s time to get started. Your pension and Social Security benefits may not provide enough retirement income for you to live the way you want to in retirement.
The New Mexico Deferred Compensation Plan is a 457(b) plan offered by your employer, created to allow public employees like you to put aside money from each paycheck toward retirement. The New Mexico Plan can help bridge the gap between what you have in your pension and Social Security, and how much you’ll need in retirement.
With the New Mexico Deferred Compensation Plan, you decide when, where and how much to invest. And that’s just the beginning — here are four more reasons why it’s smart to participate in your deferred comp plan:
- You can start anytime — Your deferred comp plan will work for you whether you’re approaching retirement or just getting started saving. This is because time and compounding work together to help to build momentum for your money. The sooner you start, the more you could have at retirement.
- Something is better than nothing — Even a little bit of savings can really add up over time. And if you continue to bump up contributions on a regular basis, the overall impact to your paycheck may not seem painful. Consider putting raises or bonuses into deferred comp — it’s an easy way to save a little more.
- Use the Future Value Calculator to see how much retirement savings you could possibly have at retirement.
- This plan is made for you — Unlike other retirement plans, deferred comp takes into account that you may retire sooner than workers in the private sector. So you don’t have to worry about paying a penalty for retiring or beginning to take income from the plan before age 59½. Withdrawals are taxable income to you in the year the payments are made.
Read about the benefits of consolidating your eligible retirement plan accounts with your deferred comp plan . Qualified retirement plans, deferred compensation plans and individual retirement accounts are all different, including their fees and when you can access funds. If you withdraw assets rolled over from your account(s), the withdrawal may be subject to surrender charges, other fees and an additional 10% tax penalty if you’re under the age of 59½. Nationwide and its representatives do not give legal or tax advice. Please contact your legal or tax advisor for such advice.
- You’ll get service you can count on – Nationwide is ready and willing to answer your questions. We’ve been helping public sector employees save for retirement for more than 30 years and our Retirement Specialists have helped educate thousands of employees about investing through their retirement plans. Feel free to call today — we don’t charge a fee to work with a Retirement Specialist.
- Read more about why New Mexico and Nationwide are right for you.
Get the help you need
The sooner you enroll, the more you can save. Take a look at the Enrollment Checklist to see what you’ll need to have handy and enroll today.
The New Mexico Deferred Compensation Plan has selected a wide range of investment options to meet your retirement planning needs.
Keep in mind that investing involves market risk, including possible loss of principal. As you get started in the plan, we’ll help you understand market risk and strategies that may help you deal with it. If you get stuck when choosing which funds are right for you, we’re here to help. We offer different levels of assistance so you can get the help you need.
Help me do it
If you want some help along the way, consider our target date funds. A target date fund is structured to automatically reset its asset mix according to its lifecycle, helping you keep your investments balanced. It is designed to potentially grow until a certain date in the future – specifically, the year you begin taking distributions.
LifeCycle Portfolios are designed for people who plan to withdraw retirement funds during or near a specific year. These funds use a strategy that reallocates equity exposure to a higher percentage of fixes investments over time. As a result, the funds become more conservative over time as you approach retirement. It is important to remember that no strategy can assure a profit or prevent a loss in a declining market; the principal value is not guaranteed or at any time including the target date. Investing involves risk, including loss of principal. When redeemed, the amount received may be less than the amount invested. LifeCycle Portfolios are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. An investor indirectly pays a proportionate share of the applicable fees and expenses of these underlying funds.
I'll do it by myself
If you want to do it on your own, go for it. You can use the My Investment Planner to determine your investor profile and suggest an asset allocation for you. Then check out the complete list of funds offered by your plan and their current performance to help you decide. Just remember -we’re always here if you have questions.
Take a look at our enrollment guide with plan highlights (PDF) to find answers about your investment options.
Get the help you need
Talk to a Retirement Specialist about your investment options.
PDFs require Adobe® Reader®
It only takes a few minutes to sign up. Here are some things you'll need:
- Contribution amount
- Investment selections
- Read about your investment options.
- Beneficiary names and Social Security numbers
Get the help you need
We'll even walk you through it. If you need more help, call one of our Retirement Specialists.
The New Mexico Deferred Compensation Plan is a 457(b) deferred compensation plan, a retirement plan offered by your employer, created to allow public employees like you to put aside money from each paycheck toward retirement. The New Mexico Plan can help bridge the gap between what you have in your pension and Social Security, and how much you’ll need in retirement.
Here are some frequently asked questions about deferred comp plans:
- What sets a 457(b) apart from other retirement plans? A 457(b) plan may offer benefits other retirement plans can’t, like penalty-free withdrawals once you stop working for your public sector employer.
- What does tax-deferred mean? Basically, you don’t pay income taxes on your deferred comp plan contributions or earnings until you retire and/or begin to take payments from your account. This may lower your current taxable income. Withdrawals are taxable income to you in the year the payments are made.
- Can I combine retirement accounts? Our Retirement Specialists will work with you to combine, or consolidate your eligible retirement accounts into New Mexico Plan account. This may make managing your retirement investments a little easier.
- How much should I put in my account? Check out the current contribution limits.
Get the help you need
Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved. The sooner you enroll, the more you can possibly save. Take a look at the Enrollment Checklist to see what you’ll need to have handy and enroll today!
Once you enroll in the New Mexico Deferred Compensation Plan, you’ll want to set up online access so you can view account details 24/7. We offer convenient, secure account access with encryption and firewall protection.
Here are some things you can do once you have online access to your account:
Manage your account
- Check your account balance
- Update your personal information
- Get current and past statements
Manage your money
- Verify your contribution dates and amounts
- Change how much you contribute and how your money is invested
- Review available investment options, see fund performance and research funds
- Sign up to have your account automatically rebalanced every quarter (Automatic Asset Rebalancing or AAR)
Get the help you need
If you need help setting up online access, we can walk you through it. Talk to one of our Retirement Specialists today.