Frequently Asked Questions
General
Contributions
Distributions
Miscellaneous
General
ING is a leading provider of deferred compensation and defined contribution education, administration and investment services to government plan sponsors and participants. ING, through its predecessor companies, has provided services to government plans for 34 years (since 1972). We currently provide investment and/or administrative services to 21 state plans, and over 4,300 cities, counties and municipalities, including over 250 cities and counties in the State of Kansas.
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What is a 457(b) deferred compensation plan?
A 457(b) deferred compensation plan is a retirement plan that allows you to make contributions into an account established on your behalf. Your contributions are made on a pre-tax basis, and any earnings are tax-deferred. Taxes are due when money is distributed from the plan. The amounts accumulated on your behalf are distributed at retirement, or due to another qualifying event, such as severance from employment or death. For additional information regarding the County’s 457(b) Plan, please see the Program Overview section.
What is a 401(a) defined contribution plan?
Johnson County sponsors a supplemental retirement plan established under the Internal Revenue Code section 401(a). A 401(a) plan is a type of retirement plan under which an employer typically contributes a percentage of salary or flat dollar amount per year. The benefit available from the plan at retirement, or when otherwise entitled to a distribution, will be based on the vested value of your total contributions and earnings on such contributions over the time the money is invested. For additional information regarding the County’s 401(a) Supplemental Retirement Plan, please see the Program Overview section.
Contributions
What is the maximum amount I can contribute to the 457(b) Plan?
Under the 457(b) Plan, the maximum annual contribution amount is the lesser of $15,500 or 100% of includible compensation. For 2008 and later years, this $15,500 limit is indexed annually for cost of living in $500 increments.
You may be eligible for increased contributions under one of two catch up provisions. The Program Overview section contains additional information on these provisions.
How do my voluntary contributions to the 457(b) Plan affect my paycheck?
You can view an illustration of how deferrals affect your paycheck by going to the Calculators on this web site.
Do the contributions I make to the 457(b) Plan impact my retirement or Social Security?
No. Your contributions to the 457(b) Plan have no effect on the calculation of salary for purposes of computing other benefits such as retirement and Social Security.
How do I increase or decrease my contributions to the 457(b) Plan?
In order to change your contribution amount, you will need to complete a Participation Agreement that authorizes payroll deductions for the new amount. For a copy of the form, please click here. This form must be returned to the County.
If I am receiving accumulated pay, can I elect to defer this compensation into the 457(b) Plan?
Yes. Accumulated vacation pay, sick leave, back pay and other forms of accumulated pay which are payable in a lump sum such as premium time earned, are eligible for deferral under the County’s 457(b) Plan, subject to the applicable annual contribution limit.
Can I stop contributing to the 457(b) Plan?
Yes. You will need to complete a Participation Agreement reducing your contribution to zero. For a copy of the form, please click here. This form must be returned to the County. The discontinuance of your contributions will be effective immediately. The amounts previously contributed will remain in the Plan until you become entitled to a distribution under the Plan provisions. Once you stop contributing to the 457(b) Plan, the County matching contribution to the Supplemental Retirement Plan will cease.
What happens if I take a leave of absence from the County without Pay?
You will no longer be eligible to participate in the Program and have compensation deferred under the 457(b) Plan or matching contributions made to the 401(a) Supplemental Retirement Plan while on an unpaid leave of absence. You will be able to resume participation upon returning to pay status with the County.
Can I rollover other retirement assets or benefits into the Program?
Note that amounts rolled into a government 457(b) plan from another plan type (including a traditional IRA) would be subject to the 10% premature federal penalty tax if distributed prior to age 59 ½ (unless an IRS exception applies).
Distributions
When can I receive a distribution of my benefits under the Program?
Can I withdraw funds from the 457(b) Plan while still employed with the County?
In accordance with Federal Regulations, payment prior to severance from employment is only permitted if 1) you qualify for an unforeseeable emergency withdrawal or 2) if your account balance does not exceed $5,000, you have not contributed to the 457(b) Plan for two years prior to this distribution, and you have not previously received this type of withdrawal.
What do I need to do when I leave County service and become entitled to a distribution from the Program?
When you sever County employment, you are entitled to a distribution from the Program. If you would like to receive a distribution, you will need to complete a Termination/Distribution Request Authorization form that is available by calling ING’s national customer contact center at (800) 584-6001.
What are my options when I am entitled to a distribution?
You can choose from several options:
Once I choose a payment method, can I change how I’d like to receive my benefits?
Yes. If at a later date you decide your existing payment option may not be appropriate for your current situation, you may make a change. (Please note: you cannot make a change if you previously elected an annuity payment option.)
When am I required to begin receiving distributions?
The IRS requires that distributions under both 457(b) and 401(a) plans begin no later than the April 1st of the calendar year following the calendar year in which you attain age 70½ or separate from service, whichever occurs later. If you fail to receive the minimum required distribution for any tax year, a 50% excise tax penalty is imposed on the required amount that was not timely distributed. These rules are referred to as IRS required minimum distribution (RMD) requirements.
What is a systematic withdrawal option (SWO)? How and when are benefits paid under SWO?
A systematic withdrawal option, or SWO, is one of the forms of periodic payment options available for the distribution of your benefits under the Program. Under SWO, you elect whether to receive your benefits in a specified amount or over a stated period of time, subject to certain requirements. Once your election is made, ING will pay your installment payments automatically in the method you select. You may choose to receive benefits monthly, quarterly, semi-annually or annually. While you are receiving your SWO payments, you are still able to direct the investment of amounts remaining in your accounts. You may change the amount and timing of your SWO payments, as long as the minimum requirements are met and you continue to receive your minimum required distributions.
Can I rollover my benefits to another plan or IRA?
Yes. At retirement or severance from employment, you are permitted to rollover your benefits to another employer-sponsored eligible retirement plan or traditional IRA. To consolidate your assets under one account and perhaps simplify your payment options, you may rollover your 401(a) Supplemental Retirement plan account into your 457(b) plan account.
All distributions are eligible for rollover except for:
Amounts rolled from the 457(b) Plan to another plan type would be subject to any applicable 10% premature federal penalty tax if distributed prior to age 59½ (unless an IRS exception applies).
Please contact our local office in Overland Park at (913) 661-3797 (or, outside Johnson County, toll-free at (800) 814-1643) for additional information on distributions and eligibility for rollover. To request a rollover, you will need to complete a Termination/Distribution Request Authorization form, available by calling the national customer contact center at (800) 584-6001.
When am I subject to taxation?
All of the payments you receive from the Program are subject to Federal and State income taxes when distributed to you. The Program Overview section contains additional information on taxation, including the amount of tax that will be withheld from your payment.
If I receive my distribution prior to reaching age 59½ will I be subject to a penalty tax?
- Distributions made to your beneficiary upon your death.
- Payments made on account of your total and permanent disability.
- Substantially equal periodic payments (at least annually) made for your life or life expectancy (or joint lives or joint life expectancies with your designated beneficiary).
- Distributions made after separation from service after attainment of age 55.
- Payments to an alternate payee pursuant to a qualified domestic relations order.
ING does not offer legal or tax advice. Please seek the advice of your own legal or tax advisor prior to making a tax-related investment decision.
I have recently been divorced. How will amounts awarded to my former spouse be taxed?
Amounts awarded and paid to your former spouse as a result of a divorce, pursuant to a qualified domestic relations order (QDRO), will be taxable to your former spouse.
How do I obtain forms for an unforeseeable emergency withdrawal under the 457(b) Plan?
When you incur an unforeseeable emergency, you must complete an ING Withdrawal Request Authorization package, available by calling ING’s national customer contact center at (800) 584-6001. Your local representative can answer any questions you have regarding applying for a withdrawal. Call our Overland Park Office at (913) 661-3797 or toll-free at (800) 814-1643. Additional details on unforeseeable emergency withdrawals are available in the Program Overview section of this site.
How do I find out more about my distribution choices?
Information on your available distribution choices can be found under Payment Options in the Program Overview section of this Web site. In addition, your local representatives are available to provide you with one-on-one meetings to discuss your distribution options.
Miscellaneous
How do I change my beneficiary under the Program?
You will need to complete a Beneficiary Designation Form to change your beneficiary designation. The completed form should be returned to ING. For a copy of the form, please click here.
What happens if I don’t designate a Program beneficiary?
If you do not name a beneficiary (or if your beneficiary dies before you), death benefits will be paid to your estate. Refer to the Program Overview section for specifics.
What happens if I leave County service for military duty and then return to work?
The Program includes specific provisions that allow re-employed military personnel to receive the same benefits under the Program that they would have been entitled to had they remained in County service throughout the period of military service. To learn more, please call our Overland Park Office at (913) 661-3797 or toll-free at (800) 814-1643 or contact Johnson County OFM-Benefits at (913) 715-0700.
Are loans available under the Program?
No. Loans are not currently available under either the 457(b) or 401(a) Supplemental Retirement Plan.
How can I change direction on my investments or receive information regarding my account?
There are several ways that you will be able to receive account information, make an allocation change or transfer assets among fund options.
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