MOSERS Response to Recent Pew Center Report

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On our local news this morning there was a brief statement that state government workers my be losing some of their benefits. Do you know what they might have been talking about?

The news station was referring to a Pew Center on the State report that was issued yesterday. We have now published our response to the Pew Center’s report that was mentioned in the local news. You can read that response at this link on our website. 
Also, MOSERS contacted the news station (KMIZ) and requested a correction, since the information they provided was inaccurate.  Print Friendly and PDF

Roth 457 Option in Deferred Comp

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Will a ROTH 457 plan be offered to state employees in the near future?
A Roth 457 option is being considered and we hope to have more information within the next year.  Information will be provided through the State of Missouri Deferred Compensation Plan any time new options are available. 
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BackDROP, Deferred Compensation and Taxes

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I was told that if you have your backdrop rolled into deferred comp taxes will be taken out. Are there any taxes fees etc. that are deducted if the entire amount is put into backdrop? I thought that was the purpose of putting it there so one could pay the taxes later.
If you elect to have a BackDROP amount rolled over into your State of Missouri Deferred Compensation account, or any other eligible plan that will accept your rollover, your payment will not be taxed in the year of the rollover and no income tax will be withheld. The payment will be taxed when you take it out of the traditional IRA or the new eligible employer plan.
For more information on BackDROP, see this website article about the different BackDROP payment methods. We also would encourage you to talk to a MOSERS benefit counselor at your convenience about your individual retirement circumstances.
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HB305 payments and Deferred Compensation

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Would the HB305 retirement incentive be considered pay or compensation and thus be eligible to be used as a contribution to a deferred comp account?  
There have been three questions very similar to this in the recent past. Please refer to them in the following links: (note, the third link was added after this was originally posted, as it was inadvertently left off). 

Annual Leave, Deferred Comp and Other Post-Retirement Accounts

Unused Annual Leave and Deferred Comp

HB305 - Tax Implications and Deferred Compensation

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Latest Information on "Years of Service" Incentive, HB305

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What is the latest information available on House Bill 305?
Please see this feature story on our website for the latest information on HB305. Print Friendly and PDF

Annual Leave, Deferred Comp and Other Post-Retirement Accounts

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I understand that the annual leave distribution can be rolled into a Deferred Compensation account upon retirement. Can that distribution for annual leave be rolled into other post-retirement accounts?
First, we need to make clear that vacation pay cannot be “rolled over.” It is not money in a retirement plan. It is “pay” or “compensation.” It can be treated as a “contribution” to a defined contribution plan that an employee is eligible to participate in - like the State of Missouri Deferred Compensation Plan (457) as this plan works in conjunction with state payroll. So the excess annual leave pay is a “contribution” in addition to other contributions made during the year to the Plan as long as the total does not exceed annual IRS limits.
If an employee wants to contribute the money to a traditional IRA, the annual leave pay is after tax pay to the employee, and could then be contributed to a traditional IRA and possibly deducted at tax time if the employee qualifies for the deduction.
Those limitations can be found on the IRS website.
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