457(b) Plan

Wake County Public Schools has selected Voya’s Retirement Choice II packaged program as the funding option for the 457(b) Plan.  With this program, you can build a portfolio from a broad menu of investment options managed by well-known mutual fund companies. There are target-date funds available along with a separate fixed interest option. The program offers a variety of employee services to assist you from enrollment to retirement. The following summary highlights some important plan features. For more information, please schedule an appointment Voya Financial Advisors (timetap.com) to meet or speak with a local Plan representative. More details about plan features may be found in the Voya Retirement Choice II Information Booklet or the plan document maintained by your employer. 

Eligibility

All full-time, part-time and temporary employees of Wake County Public School System are immediately eligible to participate in the Plan. You do not have to wait for open enrollment.

 

Automatic Rate Escalator

You can choose to use the Automatic Rate Escalator to select regularly scheduled increases to both your before-tax and Roth 457(b) after-tax contribution rates. You have the choice to pick the percentage of increase, set a maximum contribution rate (Plan maximum is 75%), initial increase date and the frequency of subsequent increases. The frequency options are one-time, quarterly, semi-annually or annually. If you change your contribution rate, it will automatically cancel your rate escalator election.

 

Contributions

Contributions under the Plan are made by participants through a payroll deduction and will represent a reduction in salary either on a pre-tax or after-tax [Roth] basis. Under the Plan, the maximum annual contribution amount is set by Internal Revenue Service (IRS) guidelines on a yearly basis. You may view the current limits here. Under the Plan, the maximum annual contribution amount is set by IRS guidelines on a yearly basis. You may view the current limits here https://voya.com/irslimits)

 

Distributions

The following payment options are available: partial or lump sum withdrawal, systematic withdrawal option (specified period of specified amount), estate conservation option (IRS Required Minimum Distribution), roll over to another eligible retirement plan or IRA, or combination of payout options. Amounts rolled from a governmental 457(b) plan to a different plan type are subject to the IRS 10% premature distribution penalty tax when subsequently distributed from that other plan prior to the participant reaching age 59½ (unless another IRS exception applies).

 

Rollovers

Rollovers from a previous employer’s 401(k), 403(b) or 457(b) are accepted. Please carefully consider the benefits of existing and potentially new retirement accounts and any differences in features. Rollovers from non-457(b) plans to a governmental 457(b) plan remain subject to any applicable IRS 10% premature distribution penalty tax (unless an IRS exception applies) when distributed from the governmental 457(b) plan. Consult your own legal and tax advisors regarding your situation. For assistance with Contract Exchanges and Rollovers, schedule an appointment with one of the local Voya Plan representatives or contact the Voya Account Consolidation Team directly at (866) 865-2660 or email act@voya.com.

 

Loans

Loans are available. Please note loans may impact your withdrawal value and limit participation in future growth potential. Other restrictions may apply.

Eligible Withdrawals, including Hardship Withdrawals, and Loans must be in accordance with plan rules and approved by the plan sponsor prior to requesting funds from your account at Voya. Wake County Public School System has selected planwithease.com to help administer these options in compliance with IRS regulations. Instructions on how to access your account on planwithease.com and request the approval certificate are on wcpss.beready2retire.com. Under the Plan Information tab click on In-Plan Exchanges & Plan Provider Distribution Requests. If you need assistance with planwithease.com, you may contact their customer service associates at 855-464-6928, Monday-Friday, 8 a.m. to 6 p.m. or at customerservice@planwithease.com.

 

Withdrawals

The following types of withdrawals from your pre-tax contributions are available through the Plan:

  • Attainment of age 701/2 
  • Severance from employment1
  • Death
  • Purchase of service credits with a Governmental Defined Benefit Plan
  • Small amount cashouts of up to $5,000
  • Withdrawals for unforeseeable emergencies may also be available in specific circumstances.

Amounts rolled from a governmental 457(b) plan to a different plan type are subject to the IRS 10% premature distribution penalty tax when subsequently distributed from that other plan prior to the participant reaching age 59½ (unless another IRS exception applies). In addition, Roth contributions may be distributed tax-free only if the 5 year holding period requirement has been satisfied

When eligible for a withdrawal, your payment options are as follows:

  • Systematic withdrawal of your account (specified period of specified amount)
  • Estate conservation options (IRS Required Minimum Distribution)
  • Lump sum, or partial lump sum distribution in combination with other payout options
  • Rollover into another ligible Plan or IRA

Withdrawal forms can be obtained by contacting Voya’s Customer Service Center at 800-584-6001 or by logging into your online account and choosing Account>Withdrawals>Request A Withdrawal

Eligible Withdrawals, including Hardship Withdrawals, and Loans must be in accordance with plan rules and approved by the plan sponsor prior to requesting funds from your account at Voya. Wake County Public School System has selected planwithease.com to help administer these options in compliance with IRS regulations. Instructions on how to access your account on planwithease.com and request the approval certificate are on wcpss.beready2retire.com. Under the Plan Information tab click on In-Plan Exchanges & Plan Provider Distribution Requests. If you need assistance with planwithease.com, you may contact their customer service associates at 855-464-6928, Monday-Friday, 8 a.m. to 6 p.m. or at customerservice@planwithease.com.

1You may be eligible to withdraw funds that were rolled into your account from a former employer plan prior to severance, however, you may be subject to an IRS 10% premature distribution penalty tax

 

Annual Asset Based Fee

0.28% on all investment options. This fee is deducted from participant accounts quarterly. Fund management fees and other fund operating expenses will apply to all investment options under the plan, based upon the investment option chosen. Please refer to the individual Fund prospectuses for fund fee information.

 

Financial Wellness Experience

Financial wellness is about the balance of living for today, saving for tomorrow, and building confidence along the way. To help guide you, Voya is proud to bring you the Financial Wellness Experience. Log in to your account and select the Financial Wellness tab above myOrangeMoney. Complete your personal assessment to learn how to take meaningful actions for your financial future.

You should consider the investment objectives, risks, and charges and expenses of the mutual funds offered through a retirement plan, carefully before investing. The fund prospectuses and information booklet containing this and other information can be obtained by contacting your local representative. Please read the information carefully before investing.

Mutual funds under a custodial or trust account agreement are intended as long-term investments designed for retirement purposes. Money distributed from a 403(b) plan will be taxed as ordinary income in the year the money is distributed. Early withdrawals from a 403(b) plan, if taken prior to age 59½, will be subject to the IRS 10% premature distribution penalty tax unless an exception applies. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than the original amount invested. A group fixed annuity is an insurance contract designed for investing for retirement purposes. The guarantee of the fixed account is based on the claims-paying ability of the issuing insurance company. Although it is possible to have guaranteed income for life with a fixed annuity, there is no assurance that this income will keep up with inflation. An annuity does not provide any additional tax deferral benefit; tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does offer other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.

For 403(b) fixed or variable annuities, employee deferrals (including earnings) may generally be distributed only upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals made after 12/31/88. Exceptions to the distribution rules: No Internal Revenue Code withdrawal restrictions apply to ‘88 cash value (employee deferrals (including earnings) as of 12/31/88) and employer contributions (including earnings). However, employer contributions made to an annuity contract issued after December 31, 2008 may not be paid or made available before a distributable event occurs. Such amounts may be distributed to a participant or if applicable, the beneficiary: upon the participant’s severance from employment or upon the occurrence of an event, such as after a fixed number of years, the attainment of a stated age, or disability.  For 403(b) custodial accounts, employee deferrals and employer contributions (including earnings) may only be distributed upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: hardship withdrawals are limited to: employee deferrals and ‘88 cash value (earnings on employee deferrals and employer contributions (including earnings) as of 12/31/88).