403(b) & 457 Retirement Plans for Public Employees

• A 403(b) is a supplemental Retirement Plan available for employees in Health Care, Education, and other Tax-Exempt Organizations.
• 403(b)s offer tax advantages, though the exact benefits depend on whether you make Traditional or Roth contributions.
• Most employees may contribute up to $24,500 in 2026 into their 403(b)
• Based on age or years of service, they may be eligible to save more.

Cleveland Securities works with many Public School Districts in Northeast Ohio for the 403(b) and 457(b) Retirement Plans.  We can personalize your retirement savings using with a variety of investment choices; ranging from Index Funds, Managed Mutual Funds, Stable Value Funds and Target Date Retirement Funds. 

In addition to building a nest egg, we'll work with you to coordinate your Retirement Savings with your State Pension benefits to create an income plan that works for you!  

• Akron Public Schools
• Alliance City Schools
• Ashtabula Area City Schools
• Berea City Schools
• Boardman Local Schools
• Brunswick Schools
• Buckeye Local School District
• Cleveland Heights - University Heights City School District
• Cleveland Metropolitan School District
• Columbus City Schools
• Cuyahoga Community College
• Cuyahoga County Education Services Center (ESC)
• Elyria City School District
• Geneva Area City Schools
• Green Local Schools
• Hudson Local School System
• Independence Local Schools
• Jefferson Area Schools
• Kenston Local Schools
• Lakewood City Schools
• Madison Local School District
• Mentor Exempted Village Schools
• North Olmsted City Schools
• Northwest Local Schools
• Ohio Valley School District
• Olmsted Falls City Schools
• Painesville City Local Schools
• Parma City Schools
• Perry Local School District
• Pickerington Local Schools
• Riverside Local School District
• Rocky River City School District
• Shaker Heights Board of Education
• South-Western City Schools
• Stow-Monroe Falls City School District
• Strongsville City School Schools
• Warrensville Heights City School District Board of Education
• Willoughby-Eastlake City Board of Education

If your School District is not listed here, we still may be able to help! Call or email us to see if we can utilize an exisiting provider to help your retirement needs!

Cleveland Securities works in the Governmental Retirement Plan market using the 457(b) Deferred Compensation Retirement Plan.  There are 2 contribution types; Pre-Tax and After-Tax Roth.  Below is a summary for both contribution types:

Pre-Tax 457 Plans
Pre-tax 457(b) plans are tax-deferred retirement savings plans available to employees of state and local governments and certain tax-exempt organizations. Contributions are made before federal income taxes, reducing taxable income for the year of contribution. Earnings grow tax-deferred, and distributions are taxed as ordinary income.

Pre-Tax Contribution Limits (2026):

Basic Limit: Up to $24,500 or 100% of includible compensation, whichever is less.
Total Limit: Employee and employer contributions combined cannot exceed $24,500 or 100% of includible compensation.

Catch-Up Provisions: 

• Age 50 Catch-Up: Participants aged 50 or older can contribute an additional $8,000, increasing the total limit to $32,500 in 2026.
• Special 457 Pre-Retirement Catch-Up: Available in the three years before normal retirement age (as defined by the plan, typically between 65 and 70½). Allows contributions up to twice the basic annual limit ($49,000 in 2026) or the basic limit plus unused deferrals from prior years, whichever is less. Cannot be used with the age 50 catch-up in the same year.
• Age 60-63 Catch-Up (SECURE 2.0): Starting in 2026, participants aged 60–63 can contribute an additional $11,250 (instead of $8,000) if the plan adopts this provision, bringing the total to $35,750. This applies to governmental plans and cannot be combined with the special 457 catch-up.

Availability of Loans:

Loans are often permitted, subject to IRS rules (e.g., maximum loan amount is the lesser of $50,000 or 50% of vested account balance). 3 or 5 year Loan Repayments available.

Key Features:

• No 10% early withdrawal penalty for distributions after separation from service, regardless of age (unlike 401(k)/403(b) plans).
• Distributions are required upon separation from service or reaching the required minimum distribution (RMD) age (73 for those born between 1951–1958, 75 for those born 1960 or later).
  Employer matching contributions, if offered, are allocated to a pre-tax account.

Roth 457 Plans

Roth 457(b) plans allow after-tax contributions, meaning contributions are taxed in the year they are made. Qualified distributions (after age 59½, disability, or death, and meeting a five-year holding period) are tax-free, including earnings. Roth options are available in governmental 457(b) plans and some non-governmental plans, if amended to include them.

Roth Contribution Limits (2026):

• Basic Limit: Same as pre-tax 457(b): $24,500 or 100% of includible compensation, whichever is less. Roth and pre-tax contributions are combined under this limit.
• Total Limit: Combined employee and employer contributions cannot exceed $24,500 or 100% of includible compensation.

Roth Catch-Up Provisions:

• Age 50 Catch-Up: Same as pre-tax: $8,000 additional for those 50 or older, totaling $32,500 in 2026.
  Special 457 Pre-Retirement Catch-Up: Same as pre-tax: Up to $47,000 or basic limit plus unused prior deferrals in the three years before normal retirement age. Cannot be combined with age 50 catch-up.
• Age 60-63 Catch-Up: Same as pre-tax: $11,250 additional for ages 60–63, totaling $35,750 in 2026, if adopted by the plan.
• Mandatory Roth Catch-Up (SECURE 2.0): Starting in 2026, catch-up contributions for participants with prior-year FICA wages exceeding $145,000 (adjusted for inflation) must be designated as Roth contributions. Plans without Roth options may prohibit catch-up contributions for these participants.

Availibility of Loans:

Loans are typically available for Roth accounts, following the same IRS rules as pre-tax accounts (e.g., $50,000 or 50% of vested balance).  3 or 5 year Loan Repayments available

Key Features:

• Qualified distributions are tax-free, offering tax diversification for retirement planning.
• No income limits for Roth 457 contributions, unlike Roth IRAs.
• Roth contributions are held in a separate account within the 457(b) plan.
• Same withdrawal rules as pre-tax 457(b): No early withdrawal penalty after separation from service, with distributions allowed upon separation or RMD age.
• Employer matching contributions on Roth deferrals are allocated to a pre-tax account, not the Roth account.

Additional Notes:

• Tax Diversification: Combining pre-tax and Roth contributions allows flexibility in managing tax liabilities in retirement. Roth contributions may benefit those expecting higher tax brackets in retirement, while pre-tax contributions suit those anticipating lower brackets.
• Plan-Specific Rules: Not all 457(b) plans offer Roth options or loans, and catch-up provisions depend on plan adoption of SECURE 2.0 changes. Always check with the plan sponsor.
• Rollover Options: Pre-tax 457(b) funds can be rolled over to IRAs, 401(k)s, or 403(b)s; Roth 457(b) funds can be rolled to Roth IRAs or other Roth accounts, subject to plan rules.