Things to consider:
Beneficiary
Make sure your beneficiary election stays current.
Address changes
You will need to contact the Empower Participant Service Center if you have an address change once you have completely separated from service with Nassau County.
Distribution options
Here are the distribution options available to you:
- Once you separate from service
- Cash withdrawal (Lump sum)
- Partial Withdrawal: Monthly, quarterly, semi-annual or annual installments
- Roll over to Individual Retirement Account (IRA)
Required Minimum Distributions (RMDs)
The Internal Revenue Service (IRS) requires retirement plan participants to begin taking a minimum distribution amount from their retirement plan upon attainment of age 72 or retirement, whichever is later. These are commonly known as Required Minimum Distributions or RMDs.
Unless you still work for Nassau County, you must take your RMD from your Nassau County Deferred Compensation Plan account during the year in which you attain age 72. You may initiate the first withdrawal by December 31 or wait until April 1 of the following calendar year. Once you begin taking RMDs, even if you return to active employment, you must continue to do so by December 31 of each year until the account balance is depleted.
If you delay your first RMD to April 1, you will be required to take a second distribution before the end of the same year.
Outstanding loan repayment
If you have a loan outstanding from the plan upon retirement, you may continue to repay the loan on a monthly basis or in full at any time. If your repayments stop, the loan will be considered in default, and the remaining outstanding loan balance will be considered a taxable distribution to you in that year. You must contact Empower’s Participant Service Center at 877-778-2100 upon separation to discuss your loan and repayment options.
Any outstanding loan balance not paid back under plan rules after termination of employment becomes taxable in the year of default. Under the Tax Cuts and Jobs Act, for defaults related to termination of employment after 2017, the individual has until the due dates of that year's return (including extensions) to roll over the outstanding loan amount to an IRA or qualified employer plan.