START Plan FAQs
START Saving Toward a Richer Tomorrow!
The START Plan consists of two components: 457(b) and 401(a) plans
–
The 457(b) plan consists of your tax deferred
contributions into the START plan
–
The 401(a) plan consists of a County match based on
your 457(b) contributions
–
Earnings accumulate tax-deferred
>Who is eligible to participate?
>Do I have to participate?
>May I participate in other retirement plans in addition
to this program?
>What happens to the money I contribute to the
program?
>Who owns my deferred compensation funds?
>Are there limits on the amount I defer?
>Can I withdraw my money from the program at any
time while I’m still employed?
>What constitutes an “unforeseeable emergency”?
>What happens if I separate service from my
employer or retire?
>When will I have to pay Federal income taxes on
my deferred compensation account?
>Does participation in this program guarantee
that I will pay fewer taxes?
>How do I enroll?
>When will it start once I enroll?
>How much does the County contribute?
>What is the vesting period?
>Can I access my account online?
>Will I receive account statements?
Q: Who is eligible to
participate?
A: All full-time and part-time benefits-eligible employees of
Q: Do I
have to participate?
A: No. Participation in this program is entirely voluntary. You
decide if you want to contribute to the plan. Also, depending on the limits set
by your plan, you decide how much you want to contribute and how long you want
to contribute. Remember, this is a retirement savings program that requires a
long-term commitment of funds.
Q: May
I participate in other retirement plans in addition to this program?
A: Yes. Your participation in this program does not exclude you from
being eligible to participate in other plans. Consult your tax advisor
regarding your particular situation.
Your contributions to one plan may limit the amount you
can contribute to another.
Q: What
happens to the money I contribute to the program?
A: When you authorize your employer to defer a portion of your
compensation to the program, you also select the funding option(s) you prefer
and how you would like to direct your deferrals among those options. Your
deferrals will accumulate and earnings will be credited based on the
performance of the options you have selected.
Q: Who
owns my deferred compensation funds?
A: Your employer owns the assets in the deferred compensation plan
until they are distributed or made available to plan participants. The employer
must retain ownership of the assets until this time to preserve the
tax-deferred status of the plan.
Q: Are
there limits on the amount I defer?
A: Effective January 1, 2007, the deferral amount is $15,500 per
year or 100% of taxable income (less 457 deferrals), whichever is less. There
are also "catch up" provisions for individuals over age 50 or who are
nearing retirement.
Q: Can I
withdraw my money from the program at any time while I’m still employed?
A: No. According to the Plan Document, you are not permitted to
withdraw funds while you are employed by the County unless: 1) you experience
an approved unforeseeable emergency, or 2) you have attained age 70½ and elect
to begin distributions (you must discontinue deferrals to the plan in this situation).
Otherwise, your account values are payable only when you retire, terminate from
the County, or die. In the event of your death, your beneficiary of record will
receive your benefit payments.
Q: What
constitutes an “unforeseeable emergency”?
A: Emergencies 1) for which you cannot ordinarily budget; and 2)
that result in severe financial hardship for the participant may qualify.
Examples are serious illness or injury to the participant or dependent which
creates severe financial hardship, or personal property losses requiring funds
over and above what may be covered by insurance. The facts are considered in
each separate set of circumstances, and are measured against IRS standards to
determine if a true financial emergency exists. Such determination is final.
Expenses such as school tuition, the purchase of a car or home, minor
emergencies such as car repair, appliance replacement or maintenance are not
considered unforeseeable emergencies. You must apply for a withdrawal of funds
to meet an unforeseeable emergency, and only for the amount needed to meet the
unforeseeable emergency.
Q: What
happens if I separate service from my employer or retire?
A: Once you separate from service, you may no longer make
contributions to the plan. However, you may begin the distribution of your
account immediately and receive the value of your account, less any taxes and
other applicable charges, whether in a lump sum or over a period of time.
Effective January 1, 1989, distribution of the funds from
your deferred compensation account may begin no later than April 1st of the
year following the calendar year in which you separate from service or attain
age 70½, whichever comes earlier. If you reach the age of 70½ and are still
employed, you may continue deferring to the plan until you terminate employment
or you may initiate distribution. However, if you have reached age 70½ and
choose to initiate distributions while still employed, you may not continue to
contribute to the plan.
Q: When will
I have to pay Federal income taxes on my deferred compensation account?
A: Income taxes will be payable in the year or years in which your
accumulated deferred compensation account is paid or made available to you or
your beneficiary. Taxes are only assessed on the amounts made available in any
given tax year.
You may find that periodic benefit payments are preferable
to a lump-sum payment for tax purposes. Your accountant, attorney, or tax
advisor is best prepared to help you with this decision.
Q: Does
participation in this program guarantee that I will pay fewer taxes?
A: Most of us can expect to have less taxable income and to be
taxed at a lower rate during retirement than when we are working. If this
proves to be true in your case, you may pay less tax. However, this cannot be
guaranteed for any individual, nor can future tax rates be predicted.
Q: How do I
enroll?
A: You can enroll anytime.
Request an enrollment packet from OFM-Benefits.
Q: When will
it start once I enroll?
A: Enrollments/changes take effect with the first paycheck received
in the month following the date the form was signed (providing the form is
received timely). For example, if an enrollment form is received that was
signed on 09/22/06, deductions will begin with the check the employee receives
on 10/13/06. If you want to be sure which pay period the deductions will start,
please contact OFM-Benefits.
Q: How much
does the County contribute?
A: A matching contribution equal to 100% (up to 3% of base
bi-weekly pay) of the amount the employee contributes will be made each payroll
period. Employees may contribute more than 3%, but the employer
match will be capped at 3% of base bi-weekly pay.
County matching contributions do not appear on employees’
paychecks, though the employee contributions appear.
Q: What is
the vesting period?
A: 5-years: qualified years of service will be counted (i.e.,
someone who has been a full-time regular or part-time regular employee for 5 or
more years will be vested immediately). Prior service with the County will
count towards vesting time, as long as the break in service is no greater than
5 years.
An employee automatically becomes fully vested upon the
attainment of age 65, death, or disability.
Employees will become vested in
Years of Service:
1
2
3
4
5
Vesting Percentage:
20%
40%
60%
80%
100%
Q: Can I access my account online?
A: You can access your account via the web at www.ingretirementplans.com/custom/joco. Please
contact ING at 1-800-584-6001 or a member of OFM/Benefits at 913-715-0700 about
registration for website access.
Q: Will I
receive account statements?
A: Employees enrolled in the START Plan will receive a quarterly
statement mailed at home from ING. However,
participants can request ING to send statements by e-mail or access by web
only. Information for both employee and
employer contributions will be provided on the statement.