Human Resources

Human Resources

Deferred Compensation - 457 Roth - Frequently Asked Questions

Below are our frequently asked questions for the 457 Roth Plan. Please click on each question below to expand and view the answers.

You may enroll in the Roth plan offered by ICMA-RC or Empower Retirement (or both) by completing a paper enrollment form and submitting it to Human Resources. Forms will be available on the benefits 457 Roth website after October 19, 2015.

The first payroll deduction will be effective with the first check in January 2016; please submit your enrollment form no later than December 18, 2015 to ensure your first deduction is taken with the first check in January. Forms received after 12/18/15 will be processed with the next available pay period and corresponding Payroll deadlines.
You may stop, change or restart your bi-weekly contributions at any time by submitting a change request via the Employee Online system – under Deferred Compensation. Changes will be made with the next available pay period, subject to Payroll cut-off dates.
Yes, you can have both a pre-tax and an after-tax Roth account and contribute to both. However, you may not exceed the annual maximum contribution of both accounts combined.
Yes, participants can borrow up to 50% of the account balance up to a $50,000 maximum. The minimum amount an employee can borrow is $1000.
Yes, participants may request an emergency withdrawal request. Requests are subject to strict IRS requirements and thorough review by the Deferred Compensation Committee before approval.
Your distribution is income-tax free if you are eligible for a distribution from your Plan and you withdraw your Roth contributions and any earnings after holding the account for at least five tax years and:
  • You are at least age 59½; or
  • You become disabled; or
  • You die (in which case, your beneficiaries will take a withdrawal).

If a distribution is made from your Roth 457 account before you reach age 59½ and it is not due to death or disability, or reaching the five tax year holding period, you will pay income taxes on any earnings that are distributed. Otherwise, there is no income tax due on the Roth contributions distributed from the Plan since they are made with after-tax dollars.
Your City contribution may only be allocated towards your pre-tax account. The IRS does not allow employer contributions to be allocated towards a participant’s Roth account.
Representatives from both Empower Retirement and ICMA-RC are available to assist you if you have any additional questions; you may also contact Human Resources at 951-826-5639:

ICMA-RC: Ruben Diaz, Retirement Plans Specialist, 888-883-8577, rdiaz@icmarc.org
Empower Retirement (Formerly Great West): Jeff Cruz, Retirement Plan Counselor, 800-382-8924 ext. 67458, Jeff.Cruz@empowerretirement.com

 

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