The ING Stable Income Fund annualized credited rate effective first quarter 2014 (January 1 - March 31, 2014) is 2.00%.
Are you being a Scrooge with your own retirement savings this holiday season? The December 2013 DC Update explores how increasing contributions now can have a major impact on your savings at retirement. This edition also highlights onsite visits from education specialists and the 1099-R tax forms arriving next month.
VIEW THE DECEMBER 2013 DC UPDATE1099-R Tax Forms
For participants who received a payment in 2013, a 1099-R tax form will be available online by the fourth week of January 2014. For additional updates on the status of the 1099-R tax forms, log on to Account Access at www.modeferredcomp.org.
Required Minimum Distributions (RMDs)
Tax laws require annual withdrawals, known as Required Minimum Distributions (RMDs), from retirement accounts in the year a participant reaches age 70½, or when he or she retires, whichever is later. The State of Missouri Deferred Compensation Plan reviews participant accounts each year to ensure that they are withdrawing the minimum amount required by law. If a participant has not withdrawn enough to satisfy the RMD, the difference will be paid by December 31, 2013. If this is the first year a participant is required to receive a distribution, he or she will be sent an RMD in March of 2014.
For those receiving periodic payments, that payment schedule will continue unchanged. However, if the requested payments equal the RMD amount, the State of Missouri Deferred Compensation Plan will adjust the payment amount(s) so that the RMD is satisfied. This adjustment will take place each January or at the time a participant establishes an RMD-only schedule.
Participants can establish periodic payments at any time, though they are not required to do so. Each participant’s account will be reviewed annually to ensure compliance with the regulations and any remaining RMD will be distributed automatically.
A special thanks to our many participants for the continued support of the deferred compensation plan benefit. In October, more than 32,000 Missourians contributed a combined $4 million in savings to the Plan. The November 2013 DC Update shares how significant this savings accomplishment is, while also reviewing 2014 contribution limits, the new and improved Account Access, and online seminar enrollment.
VIEW THE NOVEMBER 2013 DC UPDATEAccount Access — the secure online account portal maintained by our record keeper, ICMA-RC —was recently redesigned with a fresh new look and improved navigation. Log on now to experience the new site, or watch this short webinar highlighting the major improvements.
THE NEW LOOK OF ACCOUNT ACCESSSaving pre-tax money with the deferred compensation plan will decrease your taxable income, but what does that mean for your paycheck? Take a stroll on the Plan's custom Paycheck Calculator to get the scoop. Also in this edition, four important Missouri Target Date Fund reminders, a note about online account access and cumulative auto enrollment statistics by department as of September 2013.
VIEW THE October 2013 DC UPDATEFor this year's National Save for Retirement Week celebration, we encourage you to consider small account changes that can have a big impact on your long-term savings goals.
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Please note: The following information applies to participants who are invested in Invesco Small Cap Growth, Dreyfus Third Century Z, Fidelity Asset Manager, or Prudential Jennison Blend. If you do not hold assets in these funds, please disregard this message.
READ MOREIn preparation for October's National Save for Retirement Week, the September DC Update explores small changes you can make now that will prepare your savings for long-term growth. Also included in this month's update are a few important retirement reminders and information about the Plan's financial planning services.
VIEW THE SEPTEMBER 2013 DC UPDATEPre-Tax or Roth contributions? The August DC Update explores the difference between these two savings options and what it could mean for you in retirement. Also in this edition, explore the new Education On-Demand page designed for small group orientations or individual learning on the go. Plus, education specialist Dan Wagner retires from the Plan after almost 40 years in the insurance and financial services industry.
VIEW THE AUGUST 2013 DC UPDATEThe July 2013 DC Update takes a closer look at the RetiremenTrack calculator -- a custom online tool designed to help state of Missouri employees forecast their retirement savings situation. Also in this update, learn more about the Vantagepoint Public Employee Memorial Scholarship Fund sponsored by our record keeper, ICMA-RC, and the availability of the second quarter newsletter and statements.
VIEW THE JULY 2013 DC UPDATEThe June 2013 edition of the DC Update highlights the Small Change, Big Savings calculator, an interactive tool that can help curb your spending habits. This month's update also includes important information on annuities and the many consumer services available to Missourians who are considering these products.
VIEW THE JUNE 2013 DC UPDATEThe May 2013 edition of the DC Update is now live. This month's update includes information on rolling other retirement accounts into the deferred compensation plan and how that can positively impact your retirement savings strategy. Also, learn more about the Plan's auto savings tools and financial planning services.
VIEW THE May 2013 DC UPDATEThe auto increase feature is now available within Account Access. This optional tool allows you to schedule annual contribution increases, so your deferrals keep pace with your career.
Setting up auto increase is simple:
Auto Increase Facts:
JEFFERSON CITY, MO – The State of Missouri Deferred Compensation Plan was named the “Plan Sponsor of the Year” for 2013 by PLANSPONSOR magazine, the industry’s leading resource for retirement-benefits related news. Each year, the editors of the magazine recognize plan sponsors that demonstrate leadership in providing a more secure retirement for workers. The State of Missouri Deferred Compensation Plan, administered by the Missouri State Employees’ Retirement System (MOSERS), was chosen best in class in the public defined contribution category.
Read MoreFebruary 25-March 2, 2013, was America Saves Week, a national campaign that encourages individuals and families to save money and build personal wealth. One of the chief messages of this year's initiative was: "Set a goal. Make a plan. Save automatically." To that end, the State of Missouri Deferred Compensation Plan is an excellent solution to help you achieve retirement savings goals with automatic payroll deductions. Simply click the Enrollment button to the right to register and establish the savings amount you want deducted from each paycheck.
If you're not sure how much to save with the Plan to reach your retirement goals, be sure to try out our RetiremenTrack calculator for a comprehensive retirement analysis that takes into consideration your future pension and social security benefits along with contributions to the deferred compensation plan.
Join the America Saves movement by enrolling in the plan or logging on and adjusting your contributions today.
The American Taxpayer Relief Act signed into law on January 2, 2013, includes a provision that will allow pre-tax savings in your deferred compensation plan account to be converted to Roth 457 savings at any time. Previously, the option to convert pre-tax savings to Roth savings within the deferred compensation plan was only available to participants who had separated from service. Please note that converted amounts are taxable as income, so an in-plan Roth conversion could result in a significant tax liability. Unless you have separated from service, you cannot use assets in your deferred compensation plan account to pay for the tax liability that will result from an in-plan Roth conversion.
Visit our Publications and FAQ page for general information about the Roth 457 savings option. We recommend that you consult with a qualified tax adviser before making a decision to execute an in-plan Roth conversion.