What is the Ohio Public Employees deferred compensation Program?

Ohio Deferred Compensation is a supplemental 457(b) retirement plan for all Ohio public employees and one of the largest 457(b) plans in the country. Because of the Program’s size, plan expenses are low. The Program is unique that it is a public, non-profit organization created by Ohio legislation.

When can I access my Ohio deferred comp?

70 ½
If you are eligible to withdraw, you may: Leave the value of your account in the Program until you reach age 70 ½. At 70 ½, you will be required to withdraw a minimum distribution each year.

Can I withdraw money from my Ohio deferred comp?

Ohio Deferred Compensation does not offer a loan provision. All withdrawals are subject to ordinary income tax. on a dollar amount, fixed time period, or fixed percentage. You can stop and start these withdrawals at any time.

How do I get my Ohio deferred comp money?

How to Get Money Out of an Ohio Deferred Compensation Program

1. Request a withdrawal election form from the Ohio Deferred Compensation Service Center by calling 877-644-6457.
2. Tell your account executive the type of payment you want.
3. Discuss with the account executive how often you want to receive your payments.

How do I get rid of deferred compensation?

You can take the distribution in a lump sum or regular installments, paying tax when you receive the income. You can also arrange to withdraw some of it when you anticipate a need, such as paying for your kids’ college tuition. While the IRS has few restrictions, your employer will probably have their own rules.

Can I cash out my deferred comp?

When can you take money out of a 457 without penalty?

age 59½
You can withdraw your money from 457 before age 59½ without a 10% penalty, unlike a 401(k), but you will owe taxes on any withdrawal.

Does deferred compensation affect Social Security?

Deferred compensation shouldn’t affect Social Security benefits. Generally, the Social Security Administration isn’t worried about payments that aren’t for work in the current period.

How do I avoid paying taxes on deferred compensation?

If your deferred compensation comes as a lump sum, one way to mitigate the tax impact is to “bunch” other tax deductions in the year you receive the money. “Taxpayers often have some flexibility on when they can pay certain deductible expenses, such as charitable contributions or real estate taxes,” Walters says.

What is the Ohio Public Employee Retirement System?

About OPERS. The Ohio Public Employees Retirement System (OPERS) includes all employees who are paid by the state of Ohio, a county, municipality or local government within the state and serves more than a million employees. OPERS provides retirement, disability and survivor benefit programs for public employees throughout Ohio who are not covered by…

What is deferred compensation in Ohio?

Deferred Compensation. Ohio Deferred Compensation is a supplemental 457(b) retirement plan for all Ohio public employees and one of the largest 457(b) plans in the country. Deferred compensation has been the Program’s only responsibility since 1976.

What are the disadvantages of deferred compensation?

List of the Cons of a Deferred Compensation Plan 1. Your wages run a substantial risk of forfeiture under a deferred compensation plan. 2. Once you decide to use this option, then it cannot be changed. 3. You may still have your wages taxed at the highest rate.

What is deferred comp plan?

A deferred compensation plan is a plan in which a portion of an employee’s income is set aside for a later purpose, usually retirement.