What is a 457(b) deferred compensation plan?_
A 457(b) deferred compensation plan is a retirement plan that allows you to make contributions into an account established on your behalf. Your contributions are made on a pre-tax basis, and any earnings are tax-deferred. Taxes are due when money is distributed from the plan. The amounts accumulated on your behalf are distributed at retirement, or due to another qualifying event, such as severance from employment or death. For additional information regarding the County’s 457(b) Plan, please see the Plan Overview section.
How do my voluntary contributions to the 457(b) Plan affect my paycheck?+
You can view an illustration of how deferrals affect your paycheck by going to the Financial Calculators on this website.
Do the contributions I make to the 457(b) Plan impact my retirement or Social Security?+
No. Your contributions to the 457(b) Plan have no effect on the calculation of salary for purposes of computing other benefits such as retirement and Social Security.
Can I rollover into the Plan?+
Yes. The Plan permits you to roll over benefits from another employer-sponsoredeligible retirement plan or traditional IRA.Any such rollover amounts will be eligible for distribution to you without incurring atriggering event. However, any amounts rolled in from another plan type (including atraditional IRA) would be subject to the IRS 10% premature distribution penalty taxif distributed prior to age 59½ (unless an IRS exception applies).
Can I withdraw funds from the 457(b) Plan while still employed with the County?+
In accordance with Federal Regulations, payment prior to severance from employment is only permitted if you qualify for an unforeseeable emergency withdrawal or if your account balance does not exceed $5,000, no contributions havebeen made to the 457(b) Plan on your behalf for two years prior to this distribution, and you have not previously received this type of withdrawal.
What do I need to do when I leave the County service and become entitled to a distribution from the Plan?+
When you sever County employment, you are entitled to a distribution from the Plan. If you would like to receive a distribution, you can initiate it online or call Service Center at (800) 584-6001 for more information. Please note that you are not required to take a distribution upon severance from employment. You may leave your money in the Plan until a later date (not later than the date required under IRS required minimum distribution rules).
What are my options when I am entitled to a distribution?+
You can choose from several options:
- Postpone any decision on the payment of benefits to a future date (no later than the April 1 following the calendar year in which you attain age 72 or separate from service, whichever is later),
- Receive your benefits immediately, under one of the distribution options available under the Plan (please refer to the Plan Overview section for the available distribution options), or
- Rollover your benefits into another employer-sponsored, eligible retirement plan(an eligible retirement plan is a 401 qualified plan, a 403(b) tax deferred annuity program, or another government 457(b) deferred compensation plan) or traditional IRA. Amounts rolled to another eligible plan, other than a 457 plan, would become subject to the IRS 10% premature distribution penalty tax if distributed prior to age 59½ (unless an IRS exception applies).
Compare your options for differences in cost, benefits, charges and other important features before you rollover assets. You may want to consult your legal or tax advisors.
Once I choose a payment method, can I change how I’d like to receive my benefits?+
Yes. If at a later date you decide your existing payment option may not beappropriate for your current situation, you may make a change. (Please note: youcannot make a change if you previously elected an annuity payment option.)
What is a systematic withdrawal option (SWO)? How and when are benefits paid under SWO?+
A systematic withdrawal option, or SWO, is one of the forms of periodic payment options available for the distribution of your benefits under the Plan. Under SWO, you elect whether to receive your benefits in a specified amount or over a stated period of time, subject to certain requirements. Once your election is made, Voya Financial™ will pay your installment payments automatically in the method you select. You may choose to receive benefits monthly, quarterly, semi-annually or annually. While you are receiving your SWO payments, you are still able to direct the investment of amounts remaining in your Plan account. You may change the amount and timing of your SWO payments, as long as the minimum requirements are met and you continue to receive the Required Minimum Distributions under the Plan.
Can I rollover my benefits to another plan or IRA?+
Yes. At retirement or severance from employment, you are permitted to rollover your benefits to another employer-sponsored eligible retirement plan or traditional IRA. All distributions are eligible for rollover except for:
- An unforeseeable emergency withdrawal;
- IRS Required Minimum Distributions payable on or after you attain age 72; and
- Periodic payments made over your life or a specified period of 10 years or more. Amounts rolled from the 457(b) Plan to another plan type would be subject to any applicable 10% premature federal penalty tax if distributed prior to age 59½ (unless an IRS exception applies).
Compare your options for differences in cost, benefits, charges and other important features before you rollover assets. You may want to consult your legal or tax advisors. The Voya family of companies does not offer legal or tax advice.
Please contact your local Voya Financial® professional at (503) 937-0363 for additional information on distributions and eligibility for rollover. To request a rollover, call Customer Service at (800) 584-6001 to request a distribution package that will contain the form(s) that you will need to complete. Please note you are not required to rollover your account upon severance from employment or retirement. You may choose to leave your County account in the Plan.
I have recently been divorced. How will amounts awarded to my former spouse be taxed?+
Amounts awarded and paid to your former spouse as a result of a divorce, pursuantto a qualified domestic relations order (QDRO), will be taxable to your former spouse.