457b Pre-Tax:

• Payroll contributions that lower taxable income
• Distributions taxed as income
• Penalty-free withdrawals after 31 days of separation from employment

 457b Roth:

• Post-tax payroll contributions
• Qualified distributions are not included in gross income
• 457b Roth qualified distribution rules apply

• Use the Enroll Now button on MyFloridaDeferredComp.com to fill out and submit the online EZ Enrollment Form. This option allows you to set up 457b Pre-Tax and/or 457b Roth payroll contributions in one step.
• Print and complete the 457b Pre-Tax and/or 457b Roth EZ Enrollment Form(s), located at MyFloridaDeferredComp.com, under Publications, Administrative Documents, and Forms. Either fax (850-488-7186) or mail (200 East Gaines Street, Tallahassee, FL 32399) the completed form(s) to the Bureau of Deferred Compensation. Complete both the 457b Pre-Tax and 457b Roth EZ Enrollment Forms to elect both 457b Pre-Tax and 457b Roth payroll contributions at enrollment.
• Contact an Investment Provider to set up enrollment.
• Set up enrollment using an Investment Provider’s online enrollment procedure, via the Provider’s website.

No. Participants can use the online Increase Contributions Form or contact their Investment Provider(s) to start 457b Roth payroll contributions.

Beneficiary designations apply to both 457b Pre-Tax and 457b Roth payroll contributions held by a Participant’s Investment Provider(s). Participants with multiple Investment Providers should designate beneficiaries with each of their Investment Providers.

The minimum payroll contribution is $20 per monthly pay period or $10 per bi-weekly pay period. Contributions as a percentage cannot exceed 80% of a Participant’s paycheck. The maximum contribution limits for 457b retirement plans are determined by the Internal Revenue Service (IRS) and are updated yearly. Both 457b Pre-Tax and 457b Roth payroll contributions are combined and subject to Internal Revenue Code (IRC) Section 457b limits.

For the most up-to-date maximum limits, see Internal Revenue Code (IRC) Section 457b at IRS.gov, or view the current contribution limits and suggested bi-weekly and monthly deferral amounts at  MyFloridaDeferredComp.com under Publications, Administrative Documents, and Forms.

A 457b Pre-Tax payroll contribution is a type of elective deferral made to your 457b Deferred Compensation Plan from your paycheck.

A 457b Roth payroll contribution is a type of elective deferral made to your 457b Deferred Compensation Plan from your paycheck.

Accrued leave payments may be invested into the Plan as 457b Pre-Tax or 457b Roth payroll contributions—provided the annual contribution limit is not exceeded.

457b Pre-Tax accrued leave payments are subject to Social Security and Medicare taxes. The portion of your payment held for Social Security and Medicare taxes is considered taxable income and will be subject to Federal Income Tax. The State Payroll System uses a formula that satisfies these tax requirements and calculates the maximum possible accrued leave contribution. The amount deferred will not be subject to Federal Income Tax.

A qualified distribution is generally a distribution that is made after a 5-taxable-year period of participation and is either made on or after the date you attain age 59 ½, made after your death, or attributable to your being disabled.

If a distribution is made to your alternate payee or beneficiary, then your age, death, or disability is used to determine whether the distribution is qualified. The only exception is when the alternate payee or surviving spouse rolls over the distribution to his or her own employer’s designated Roth account, in which case, their own age, death, or disability is used to determine whether the distribution is qualified.

The 5-taxable-year period of participation begins on the first day of the taxable year for which you first made 457b Roth payroll contributions to the Florida Deferred Compensation Plan. It ends when five consecutive taxable years have passed. If you make a direct rollover from a designated Roth account under another plan, the 5-taxable-year period for the recipient plan begins on the first day of the taxable year that you made designated Roth contributions to the other plan, if earlier.

If you are a re-employed veteran making 457b Roth contributions, your 457b Roth contributions are treated as made in the taxable year of qualified military service that you designate as the year to which the contributions relate.

If you take a distribution from your 457b Roth account before the end of the 5-taxable-year period, it is a nonqualified distribution. You must include the earnings portion of the nonqualified distribution in gross income. However, the basis (or contributions) portion of the nonqualified distribution is not included in gross income.

• Periodic Distribution (on a schedule)
• Partial Distribution (taken when needed)
• Full Distribution (liquidate the account)
• Roll Out (move out of the Plan)

A Participant must start RMDs for their 457b Pre-Tax account on April 1^st of the calendar year following the year of reaching age 73*, then every year thereafter. However, if a Participant is still employed by the State of Florida when they turn 73*, they are not required to begin a distribution and can continue to make payroll contributions to the Plan. Please see your tax advisor for additional information.

RMDs do not apply to 457b Roth accounts during the life of the owner.