Nys Deferred Comp Withdrawal Age In King
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Upon severance from City service, or upon reaching age 59½, participants can begin receiving distributions at any time by either accessing their account online or submitting a Distribution Form to the Plan's Administrative Office. Participants can change or stop distributions at any time.
As always, you can speak with a Deferred Compensation Plan Customer Service Representative about the Plan and your account(s) on the phone by calling at (212) 306-7760, 9am to 5pm, Monday through Friday, except holidays.
To withdraw your membership, you should apply no earlier than 15 days after you leave public employment. Sign in to your Retirement Online account, go to the 'My Account Summary' area of your Account Homepage and click “Withdraw My Membership.” You can also apply by mail by submitting a Withdrawal Application (RS5014).
Please know that your assets that started and grew in your regular Plan account or were rolled over from another 457 deferred compensation plan are not eligible for a withdrawal until you leave public service, become age 59 1/2, or are needed for an unforeseeable emergency withdrawal.
With Roth 401(k)s, income taxes are not owed on the withdrawal of your contributions, but income taxes and the 10% penalty tax may apply on the withdrawal of earnings, unless an exception applies. It's important to keep taxes and penalties in mind when making an early withdrawal.
For 457(b) and other retirement plans that require RMDs—which means non-Roth plans—RMDs must start at these ages: 70½ if you were born before July 1, 1949. 72 if you were born between July 1, 1949, and Dec. 31, 1950. 73 if you were born Jan. 1, 1951, through Dec. 31, 1959. 75 if you were born in 1960 or later.
To be eligible for this deduction, you must be at least age 59½ and the distributions must be in the form of periodic payments (non-lump sum payments).
Pre-Tax 457: Upon severance from City employment, or upon reaching age 59½, 457 Plan participants can receive direct payments, without penalty, regardless of age.
If you resign or are laid off at 57 years of age, you may begin withdrawing from the 401(k) that you were contributing to when you left your company. Alternatively, if you resign from your job and retire at age 55, you may start taking distributions from the 401(k) plan you had with your now-former employer.
The Plan differs from other defined contribution retirement plans (like a 401(k) or 403(b)), because it is designed and managed with public employees in mind. The New York State Deferred Compensation Board establishes and administers the Plan policies.