Deferred Compensation

The Town of Yountville contributes up to 7% Town match to the deferred compensation program with employee participation. 

There are 2 different deferred compensation plans to invest in, 457(b) and 401(a):

• A 457(b) plan is a tax-deferred retirement savings plan. Funds are withdrawn from an employee’s income without being taxed and are only taxed upon withdrawal, which is typically at retirement, after the funds have had several years to grow. Employees make contributions through payroll and the Town of Yountville will match up to 7% per paycheck. Contributions are made to an account in the employee’s name for the exclusive benefit of the employee and their beneficiaries. The value of the account is based on the contributions made and the investment performance over time.
• A 401(a) may include an employer contribution and may require a participant to contribute either a certain dollar amount, or a percentage of their pay with pre-tax dollars. Depending on the terms of the 401(a) plan, the employee may be permitted to contribute additional after-tax dollars as well.

  Contributions to 401(a) plans are tax-deferred, meaning that contributions grow tax-free until withdrawn in retirement when the funds are taxed as ordinary income.

Click the buttons below to read more about the deferred compensation programs available.