Retiring or leaving your Virginia employer? Got money in your VRS Defined Contribution Plans? No problem.
Whether you are retired or no longer with your employer, one of the options on what to do with your Virginia Retirement System (VRS) Defined Contribution Plan account is simply, nothing.
Keeping your money in your VRS Defined Contribution Plan may provide you with potentially more cost-effective retirement opportunities than rolling your money into a traditional IRA.
VRS Defined Contribution Plans include:
- Commonwealth of Virginia 457 Deferred Compensation Plan
- Virginia 401(a) Cash Match Plan
- Optional Retirement Plan for School Superintendents
- Optional Retirement Plan for Political Appointees
- The Virginia Supplemental Retirement Plan (VSRP)
Why stay with VRS Defined Contribution Plans? We have seven reasons.
You do not have to take your money out of VRS Defined Contribution Plans when you retire or terminate employment. You can leave your money in the plan until you are age 72* when you are required to take minimum distributions.
Seven Reasons To Stay
1. Low fees
VRS Defined Contribution Plans offer you low administrative fees and investment products that are competitively priced when compared to many others available in the retail market. Low investment fees continue to keep more of your retirement money working for you in your portfolio.
2. Tax-deferred compounding
By participating in your VRS Defined Contribution Plan, you'll enjoy the benefits of tax-deferral - which could help you save more now and in the future. Tax-deferred means you pay no current federal income taxes on the money you contribute - or any of its earnings - until you receive it.
Consider the growth potential of your account. When you invest, you earn interest on your money. And then that interest earns interest. That's called compound interest, and it can help your account to grow over time, especially with pre-tax dollar funding.
3. VRS Plan Representatives
VRS Defined Contribution Plans are serviced by knowledgeable, salaried Defined Contribution Plans Retirement Specialists of ICMA-RC who are dedicated to supporting the plans and providing education. They are available - at no cost to you - to keep you up to date on how to best plan for, transition to and live in retirement.
4. Investment options to meet changing needs
VRS Defined Contribution Plans offer a variety of investment options to help meet your needs from early savings and accumulation goals to stable value and income goals. After separating from employment you can continue to manage your investments in your account just as you did before.
The investment options are organized into three pathways. The path approach is designed to make it easier for you to manage and implement your investment decisions.
- Do-It-For-Me Path
- Help-Me-Do-It Path
- Do-It-Myself Path
5. A variety of distribution options
VRS Defined Contribution Plans offer a variety of distribution options to suit your needs, including periodic payments and partial withdrawals. You can change your distribution option at any time as long as you begin receiving payments the year after turning age 72.
Distribution options include:
- Full lump-sum distribution
- Partial lump-sum distribution
- Periodic payments (monthly, quarterly, semi-annually or annually)
- Partial lump-sum distributions combined with periodic payments
- Rollover to another plan or IRA including a Roth IRA
- Purchase of an annuity with all or a portion of the account balance
For additional information on taking distributions and any penalties that may apply, please contact an Participant Services Representative at VRS-DC-PLAN1 (877-327-5261).
6. Convenient account access
Easy account access, 24/7 at www.varetire.org or VRS-DC-PLAN1 (877-327-5261)
- Manage your account information online or through the Plan Information Line
- Rebalance or reallocate account balances
- Download forms and stay up-to-date on plan rules
- Download account data to Quicken®
7. Consolidation options
By rolling assets from other eligible retirement plans or Traditional IRAs into VRS Defined Contribution Plans, you can put all your retirement savings conveniently in one place. What's more, all Seven Reasons To Stay apply.
The 457 Deferred Compensation Plan accepts incoming rollovers of pre-tax money from other eligible retirement plans such as 401(a), 401(k), 403(b), 457(b), traditional IRA or Federal Employees Thrift Savings Plans. After-tax rollovers are not permitted. For additional information on consolidation, please contact your VRS Defined Contribution Plans Retirement Specialist.
Before taking your money out of VRS Defined Contribution Plans, be sure to:
- Familiarize yourself with any possible tax implications
- Consult with a Defined Contribution Plans Retirement Specialist servicing the VRS Defined Contribution Plans to review your options
- Compare VRS Defined Contribution Plans fees to the other plan fees
For more information:
Visit the website, www.varetire.org
Select a plan under the Defined Contribution Plans tab.
Call toll-free: VRS-DC-PLAN1 (877-327-5261)
- Press 1 to speak with an Participant Services Representative, weekdays 8:30 a.m. - 9:00 p.m.
- Press 2 to speak with a Defined Contribution Plans Retirement Specialist or reach the Virginia Service Center, weekdays 8:30 a.m. - 5:00 p.m.
Stop by the Virginia Service Center
951 E. Byrd Street, Suite 530
Richmond, VA 23219
Monday - Friday | 8:30 a.m. - 5:00 p.m. ET
Appointments required between noon and 1:00 p.m.
*Recent federal legislation raised the required minimum distribution age to 72, effective January 1, 2020. Please note that this legislation does not affect persons who reached age 70½ (the previous required minimum distribution age) on or before December 31, 2019 or, in other words, individuals with a date of birth of June 30, 1949 or earlier.