Florida Deferred Compensation

FAQ

Investing

What is the minimum amount that I can invest in the Plan? What is the maximum amount per year that I can invest in the Plan?
  1. If you are paid on a bi-weekly basis, you can enroll with a minimum of $10 every pay period.  The minimum is $20 if you are paid monthly.  The maximum amount of salary that you can defer into the Plan is the lesser of 80% of your compensation or $18,000. This amount is set in accordance with IRS regulations.  If you are age 50 or older, you may participate in the "50+ Catch-up" provision.  This allows a participant to contribute $24,000.

Can I ever invest more than the maximum amount?
  1. Yes, this provision is called the Standard Catch-up.  If you have not invested the maximum allowable amount for all the years you have been eligible to participate in the plan, this period may be used to "catch-up" any available unused portion.  You may do catch-up one time only, and it runs for a 3 consecutive year period.  The earliest that you are eligible for standard catch-up contributions is the three calendar years prior to your normal retirement age. The maximum amount you may defer in standard catch-up is twice the regular maximum for that calendar year.  To determine if you qualify for standard catch-up, you may contact the Bureau of Deferred Compensation.  When you are ready to enroll, contact your investment provider for the Application to do Standard Catch-up. You may not participate in Standard Catch-up if you are 70 1/2 or older.

Am I able to invest any of my payment for accrued leave compensation into the Plan?
  1. Yes. Many employees leaving the state take advantage of this opportunity, as it can temporarily shelter a large portion of their accrued leave payment from federal taxes. You can choose to invest a portion of your accrued leave payment into the Plan, provided that you remain within your normal maximum annual limit. You will not be able to defer all of your accrued leave payment.  Your entire payment will be taxed for Social Security and Medicare. The amount that goes to Social Security and Medicare cannot go into Deferred Compensation and is subject to Federal Income (withholding) tax.  The State Payroll System uses a formula that satisfies these tax requirements and calculates the maximum possible deferral. The amount deferred will not be subject to Federal Income Tax. A net amount will be made payable to you.

Providers

Who should I call if I do not know who my investment provider is?
  1. Call the Bureau of Deferred Compensation at 1-877-299-8002 or email deferredcompensation@myfloridacfo.com.

Can I have more than one investment provider?
  1. Yes.  You may choose as many providers as you like at one time. If you defer to more than one provider, you must specify either a dollar amount or a percentage for both companies.  If you choose to defer a percentage, your deferral cannot exceed 80% of your salary.

Am I able to transfer my money to another company in the Plan?
  1. Yes.  You may transfer between companies at any time without penalty or restrictions. You also have the option of stopping your deferral and leaving your balance with one company, while enrolling with and deferring to another company. 

What will happen if my current investment provider's contract is terminated or is not renewed by the State of Florida?
  1. If you are enrolled with an investment provider and the contract is either terminated or not renewed, you may transfer your account to another approved investment provider.  The Bureau of Deferred Compensation also retains the right to transfer your account to another approved investment provider if necessary.   You will be notified of this change.

Payroll Deductions

Am I "locked into" the Plan for a certain period of time? Can I stop or start my investment at any time? What are the deadlines for making changes to the amount of my payroll deduction?
  1. You are not "locked into" the Plan for any period of time.  You may stop, decrease, increase, or restart your deductions at any time.  Of course, there are administrative deadlines associated with these changes.  However, you cannot receive your benefits until you separate from State employment, or incur an unforeseeable financial emergency.   

What should I do if my authorized payroll deduction was not made? Why was it not made?
  1. There are several reasons why your authorized deferral would not be made, including incorrect paperwork, a wrong social security number, late submission, a change in your pay cycle, or an application for unforeseeable emergency.  Contact the Bureau of Deferred Compensation or your investment provider directly and the appropriate changes will be made.  Another reason for a stop in your deferral would be if you exceeded your maximum year-to-date contribution limit.  If at any time, your requested deferral amount causes your total contributions for the year to exceed the maximum allowable amount, the payroll system will not withhold any of your scheduled amount.  The scheduled deferral will not be adjusted by the payroll system automatically.  You will need to contact your investment provider to make any necessary changes.  If you are with a non-state agency, you should contact your payroll system.

Transfers

Can I transfer my other Pre-Tax Savings (Deferred Compensation) Plans into my 457 account?
  1. Yes, in order to transfer your accounts, you must follow these steps:

    1. Enroll as a deferred compensation participant with one of Florida's approved investment provider companies and,

    2. Complete the "ROLLOVER INTO/OUT OF FLORIDA PLAN FORM" and send it back to your investment provider.  (Your investment provider can send this form to you.)

    The State of Florida has no authority in this transaction. You or your Deferred Comp investment provider must request the transfer of funds from your former plan administrator and ensure the timely completion of this transaction. The State Office of Deferred Compensation is available for assistance.

Once I leave employment with the State can I withdraw my DC 457 assets at any age without a being subject to a 10% additional tax?
  1. Yes, There is not a 10% additional tax on early distributions.  You may begin receiving distributions no matter your age, 31 days after your last day of employment with the State.  Normal Federal taxes will apply to any distribution.

Once I leave state employment do I have to take or move my deferred compensation account balance?
  1. No, you do not have to take or move your account balance once you leave employment.  Your funds may remain in the Deferred Compensation Plan and continue benefiting from tax-deferred growth.  You may also continue to change your asset allocation.  Please remember to stop your deferral by calling the Bureau of Deferred Compensation when you separate from employment.

Unforseeable Events

If I have an unforeseeable emergency, can I withdraw my money?
  1. An unforeseeable emergency is defined as "a severe financial hardship to the participant resulting from a sudden and unexpected illness or accident to the participant or a dependent of the participant, loss of the participant's property due to natural disasters or other similar and extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant".  Examples of unforeseeable emergencies would include funeral expenses of an immediate family member, loss of job, storm and flood damage, and incurring substantial medical expenses for you or a dependent.  The Internal Revenue Service says that home and auto repairs of a non-casualty nature, educational expenses, and the purchase of a home are not unforeseeable emergencies.  Contact our office to discuss your situation and to request an "Unforeseeable Emergency Application".  Please be aware that you will be required to provide legal evidence to support your application.  All approved emergencies will be paid in a lump sum distribution, and are subject to a Federal withholding tax of 10% unless otherwise indicated by the participant.  Remember, you have never paid Federal income taxes on this money.  An unforeseeable emergency withdrawal will result in contributions being suspended until reinstated by the participant.

What happens to my account if I die while still employed?
  1. When you enroll in the Plan you must name a beneficiary who would receive the balance of your account upon your death.  Beneficiaries may elect to receive a one-time lump sum distribution, partial distribution, or receive payments for the remainder of their life or another specified period of time.  If your beneficiary predeceases you, the balance of your account will go to your estate.

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Calculators

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This website is intended to provide information about the State of Florida's Government Employees Deferred Compensation Plan. It is not intended as investment, legal, or accounting advice. If investment advice or other expert assistance is required, the services of a competent professional should be sought. For changes to your account, go to your investment provider('s) website and log in using the ID and password you created for that investment company.

Department of Financial Services  |   Division of Treasury  |   Bureau of Deferred Compensation

Florida Department of Financial Services · Division of Treasury · Bureau of Deferred Compensation
850-413-3162 (phone) · 850-488-7186 (fax) · DeferredCompensation@myfloridacfo.com
200 East Gaines Street · Tallahassee, Florida 32399-0343