Voluntary supplemental 457 deferred compensation plan
News from the Office of ÁùºÏ±¦µä Deferred Compensation:
The (NDC) is a voluntary retirement savings program for employees of the State of ÁùºÏ±¦µä, NSHE and other local government employers. The program is designed to supplement your other retirement savings and pensions. Contributions are made pre-tax and investment earnings are tax-deferred or you may invest on post-tax (Roth) basis and your investment earnings will be tax free upon eligible withdrawal. Both types of deductions are made through payroll. Effective January 1, 2015, VOYA Financial (formerly ING) became a sole record-keeper for this plan.
How to Participate
If you are interested in saving for retirement and have not enrolled in the ÁùºÏ±¦µä Deferred Compensation Program, please complete your deduction changes in Workday and go to the link below to fill out the form to set up your account.
If you already have a deferred compensation account and wish to increase (or decrease) your payroll deductions, please complete your changes in Workday.
Voluntary 457 Retirement Plan Limits
|
Plan |
2023 limits |
2024 limits |
|
State of ÁùºÏ±¦µä Deferred Compensation 457 Plan (limits of elective deferrals) |
$22,500 |
$23,000 |
|
Catch-up deferrals for participants aged 50 or over |
$7,500 Additional |
$7,500 Additional |
|
Special 457 Plan Pre-retirement 3-year Catch-up* *Participants must qualify through their record keeper by completing the Pre-Retirement worksheet. Contact the Record Keeper directly. |
The total of the regular limit plus missed contributions from prior years up to: $45,000 |
The total of the regular limit plus missed contributions from prior years up to: $46,000 |
Other Considerations
You may wish to defer beginning your retirement income. However, you should be aware that there are federal minimum distribution rules, which require you to receive some income from your retirement plan contributions and earnings.
Minimum Distribution Laws
- Federal minimum distribution rules require that you begin receiving income from your retirement plan by April 1 after the year you either (1) reach age 72 (73 if you reach age 72 after December 31, 2022), or (2) retire, whichever comes later.
- Once you begin minimum distributions, you must continue to receive income each year thereafter to satisfy these rules. You are responsible for beginning minimum distributions; your investment carrier(s) can provide you with guidance.
- If you do not comply with these rules, you could become subject to a 50% excise tax on your minimum distribution.
- If you are of sufficient age to begin minimum distributions, you may wish to select the minimum distribution payment option as your payment option. This option may be appropriate if you want to maximize income deferral and preserve your accumulation, you have other income that is adequate for your basic income needs or you want to postpone selecting an annuity or other distribution method.
Please consult with your 401 (a) investment carrier(s) to obtain more information.