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Miami-Dade County employees can elect to contribute a portion of their pay to a personal investment plan. Everyone is eligible; there is no waiting period or minimum number of hours to qualify.
The 457 Individual Retirement Account reduces the amount you pay for Federal Withholding taxes out of your paycheck. Taxes are deferred until withdrawals are made. You can contribute $22,500 for 2023. For 2024, you can contribute up to $23,000. Employees 50 years of age or older may contribute up to an additional $7,500 for a total of $30,500 starting in 2024. The minimum is $10 per pay period.
You can also choose to contribute to both providers, as long as you do not exceed the total maximum annual contribution.
Each provider offers many investment options, including fixed funds, stocks, bonds, and mutual funds.
You may rollover funds from another eligible retirement plan, your FRS DROP account, or IRA into the 457 plan. You may also rollover your 457 funds into another eligible retirement plan or to an IRA.
Participants can go online or call their providers to change their payroll contribution amount.
Social Security and the Florida Retirement System are not intended to replace all of your current income when you retire. The sooner you start a savings plan, the more time your money has to grow. The Deferred Compensation Plan can be used to supplement your Florida Retirement System and Social Security benefits.
Seek the advice of an accountant or other professional for investment assistance.
The Human Resources Department, in conjunction with the Florida Retirement System, Nationwide Retirement Solutions and MissionSquare Retirement is sponsoring free financial planning webinars. Register for the topics and schedule at your convenience.
You can schedule withdrawals from your account once you retire or leave County employment. There is no minimum age requirement or waiting period for you to begin receiving payments. Contact your plan provider to start receiving your payout.
Employees 50 years of age or older may contribute up to an additional $7,500 per year to help catch up on the funding of your retirement account. Employees benefitting from the special pre-retirement catch-up may be eligible to contribute up to double the normal limit for a total of $45,000. Both provisions can't be used at the same time.
You can apply for a loan using funds from your 457 (b) account. This will reduce the earnings potential for your account.
You must repay the loan with after-tax dollars. If you decrease contributions to your 457 (b) plan in order to repay the loan, this will further reduce your potential earnings. If you do not repay the loan, the balance becomes taxable income.
There are no restrictions on the use of the loan. The maximum loan amount is half of your account balances, up to $50,000. The maximum term for loans is 15 years for the purchase a primary residence. The repayment may be up to 5 years for general loans.
Loan interest cannot be deducted on federal income tax returns.
It takes up to three business days to process a loan request and a week before receiving payment.
Only one loan is allowed per calendar year. There is no early payoff penalty. Only one loan can be outstanding at a time.
Repaying the loan through payroll deductions is not an option. Loans must be repaid from your bank account using electronic fund transfers.
The interest rate for NRS loans is prime + 1 percent. For NRS accounts, contact the plan administrator to be screened for eligibility and request a loan package.
The interest rate for MissionSquare Retirement loans is the prime rate + 0.5 percent. For MissionSquare Retirement accounts, request the loan package by calling the plan administrator or online using their website.
You may be able to withdraw money from your account while you are still working. The funds can’t be withdrawn easily or quickly.
A sudden and unexpected emergency may create a severe financial hardship. Accidents, medical expenses or property loss not covered by insurance could create hardships.
The amount you can withdraw is limited to what will relieve the hardship.
Contact your provider directly to request an emergency withdrawal packet.
