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?
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?
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?
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.
Can I have more than one investment provider?
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?
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
What will happen if my current investment
provider's contract is terminated or is not renewed by the State of Florida?
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.
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?
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?
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.
Can I transfer my other Pre-Tax Savings (Deferred
Compensation) Plans into my 457 account?
Yes, in order to transfer your accounts, you must follow these steps:
Enroll as a deferred compensation participant with one of Florida's
approved investment provider companies and,
Complete the "ROLLOVER INTO/OUT OF FLORIDA PLAN FORM" and send it back to
your investment provider. (Your investment provider can send this form
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%
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
Once I leave state employment do I have to take
or move my deferred compensation account balance?
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.
If I have an unforeseeable emergency, can I
withdraw my money?
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
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