Nyc Deferred Comp Withdrawal Rules In Suffolk
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NYCERS' benefit payments (monthly retirement allowances, loans and excess refunds) are subject to Federal taxes, but are exempt from New York State and local income taxes if your primary residence is within New York State.
Indirect Rollover: The Deferred Compensation Plan will accept eligible rollover distributions from an eligible retirement plan. This amount must have been received by you, from the previous plan, no longer than 60 days prior to deposit in the Deferred Compensation Plan.
Upon severance from City service, or upon reaching age 59½, participants can begin receiving distributions at any time by either accessing their account online or submitting a Distribution Form to the Plan's Administrative Office. Participants can change or stop distributions at any time.
As always, you can speak with a Deferred Compensation Plan Customer Service Representative about the Plan and your account(s) on the phone by calling at (212) 306-7760, 9am to 5pm, Monday through Friday, except holidays.
The 401(k) and the 457 are retirement plans offered by employers to their employees to save for retirement. They are similar in almost every way with a few distinctions, the primary one being that 401(k)s are offered by private employers while 457 plans are offered by local governments and some non-profits.
Amounts held under the Plan as pre-tax are not taxable until you receive them. Upon distribution, your pre-tax benefits will be subject to Federal, New York State and local income taxes. Qualified Roth distributions are not subject to income tax.
Assets rolled into a 457 plan from an IRA or other eligible plan must be maintained and tracked in a separate account. Investment earnings that accrue on these assets must also be held in this separate account. The rules of the transmitting plan continue to apply, including the 10% early withdrawal penalty.
The New York City Deferred Compensation Plan (DCP) allows eligible New York City employees a way to save for retirement through convenient payroll deductions. This plan is administered by The Office of Labor Relations (OLR).
The New York City Deferred Compensation Plan (DCP) allows eligible New York City employees a way to save for retirement through convenient payroll deductions. DCP is comprised of two programs: a 457 Plan and a 401(k) Plan, both of which offer pre-tax and Roth (after-tax) options.
For assistance or more information please contact NYCAPS at 212-487-0500.