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457 Plan
457 Plan
Unforeseeable Emergency
An “unforeseeable emergency” is a severe financial hardship that includes:
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A sudden and unexpected illness or accident that you or a dependent experience;
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Loss of your property due to casualty; or
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Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond your control. Sending a child to college or purchasing a home is not considered an unforeseeable emergency.
CERF cannot make distributions for unforeseeable emergencies if the hardship can be relieved:
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Through reimbursement or compensation by insurance or from other sources;
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By liquidation of your assets (to the extent that the liquidation does not cause severe financial hardship); or
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By stopping your deferrals or contributions to this plan.
Additionally, if you have not contributed to the plan for two years, you may request an in-service withdrawal. To do this, you must:
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Have an account balance of $5,000 or less; and
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Not have received a previous in-service distribution.
Payment Options
In order to receive your benefits, you must request payment from your account by completing a Distribution/Direct Rollover/Transfer form. In the event of your death, your beneficiary will need to request payment from your account by completing a Death Benefit Claim Form.
These forms should be completed and submitted to Great-West. It may take 6-8 weeks from the date the forms are received before you receive your lump-sum payment or begin receiving payments under one of the other options.
You may choose any one of the following payment options. You are allowed to change your payment option two times over the life of your payments without incurring a charge.
Lump-Sum Payment
Your entire benefit is distributed in one payment. If your account balance is $5,000 or less, your benefits will be paid automatically as a lump sum.
Partial Lump-Sum Payments
You can elect to receive a partial lump-sum payment, and the balance of your account will be paid out in installments over a period of time that you select. If you die before receiving all of your payments, any remaining payments will be made to your designated beneficiary.
Periodic Payments
The balance of your account will be paid out in installments over a period of time that you select. If you die before receiving all of your installment payments, the remaining payments will be made to your designated beneficiary.
Annuity Payments
You can elect to receive regular annuity payments, which can be made on a monthly, quarterly or annual basis. You can choose to have these payments made to you over your lifetime or to a beneficiary after your death. If you choose to have payments made to you and your beneficiary, the payments you receive will be less than if you had elected to have the payments made only to you. The money in your 457 account will be transferred to the insurance company that will be responsible for sending your annuity checks.
Transfers
Money in your CERF 457 account can be rolled into another eligible 457 plan or to a separate account deemed to be an IRA after you leave county employment.
Death Benefit
If you die and there is money in your account at the time of your death, the remaining account balance will be paid to your beneficiary upon receipt of a Death Benefit Claim Form by Great-West. If you have not designated a beneficiary, payment will be made to your spouse. If you do not have a spouse, payment will be made to your estate.
Income Taxes
An automatic 20% tax withholding will apply to your withdrawals. Only the amount received in a calendar year is taxable and your remaining balance will continue to grow tax-deferred. Because taxes are complicated and everyone’s situation is unique, you should always seek the advice of an independent tax advisor before making a withdrawal.
401(a) Plan
Investing Your Money
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