The Housing Agency Retirement Trust 457(b) Deferred Compensation Plan
This Plan is designed to supplement your current plan, and allows you to make voluntary contributions on pre-tax basis. Allowing you to take full advantage of the power of tax-deferred savings can help you maximize your ability to save for retirement. The 457(b) plan is completely voluntary and does not require employer contributions.
|Enrollment||Enrollment Form For the 457(b) Plan.|
|Beneficiary Designation||Beneficiary Designation Form for the 457(b) Plan.|
|Contribution Change||Form to make changes to your 457(b) current contribution percent.|
|Change of Address||Change of Address Form for the 457(b) Plan.|
|Hardship Withdrawal Package||Hardship Withdrawal Form Package for the 457(b) Plan. Includes the Hardship Withdrawal Form and the Special Tax Notice.|
|Request for Distribution||Distribution Request for termination, retirement or death.|
|Credit Rate of Returns||457(b) Plan – Historic Rates of Return|
|Investment Options||457(b) Plan – HART Investment Options|
Frequently Asked Questions
How does the 457(b) plan work?
Employees may make contributions through salary reductions or as Roth contributions up to the Internal Revenue Code (IRC) limits.
What is the cost to add the 457(b) plan?
There is no cost to the Agency to join the Plan. There is a $1 quarterly fee to participants.
Who is eligible for the plan?
- All Employees are eligible to participate in the Plan.
- There are no age or service requirements.
- There are no Employer contributions.
What are the minimum and maximum contributions Employees can make?
- A participant must agree to contribute a minimum of $10 per pay period. These contributions can either be by payroll deduction or on an after-tax basis as Roth contributions.
- A participant may at any time revoke his or her agreement to defer compensation.
- Pre-tax and Roth contributions are limited to the amount allowed under the tax laws for any calendar year.
- The maximum amount which may be deferred or contributed as Roth contributions is set by law and increases with inflation. For 2020, this amount is $19,500 & $6,500 catchup contributions. If you are near retirement, this amount may be higher for you. These amounts are subject to change by the IRS each year.
How does my Agency join the plan?
To join the Plan, the participating Agency simply executes a Resolution by your Board of Commissioners/Directors. HART will assist each participating Agency, and its counsel, with meeting the applicable regulatory requirements.
What are the advantages of participating in a 457(b) plan?
There are significant tax advantages for participants in a 457(b) plan:
- Contributions to a 457(b) plan are either tax-deferred or Roth contributions. Your choice.
- Earnings on the retirement money are tax-deferred.
- Participants do not pay taxes on the pre-tax contributions or earnings until they take a distribution from the Plan.
- Contributions made as Roth contributions and earnings will not be taxed at all if they are held for the required time frame.
Is it mandatory that Employees participate?
No. Employee participation is optional. Employees may join or opt out of the plan at any time.
What is the vesting period for the contributions?
Participants are immediately fully – 100% – vested in all contributions made to the Plan.
When are you allowed to take a distribution from the plan?
Distributions are allowed in the event of the following:
- Termination of employment
- Unforeseeable Emergency* – Hardship withdrawals are available subject to the following rules:
* Unforeseeable Emergency shall mean a severe financial hardship of the Participant or Beneficiary resulting from an illness or accident of the Participant or Beneficiary, the Participant’s or Beneficiary’s spouse, or the Participant’s or Beneficiary’s dependent (as defined in Code Section 152(a)); loss of the Participant’s or Beneficiary’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by homeowner’s insurance, e.g., as a result of a natural disaster); or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant or the Beneficiary. For example, the imminent foreclosure of or eviction from the Participant’s or Beneficiary’s primary residence may constitute an unforeseeable emergency. In addition, the need to pay for medical expenses, including non-refundable deductibles, as well as for the cost of prescription drug medication, may constitute an unforeseeable emergency. Finally, the need to pay for the funeral expenses of a spouse or a dependent (as defined in Code Section 152(a)) may also constitute an unforeseeable emergency. Except as otherwise specifically provided above, the purchase of a home and the payment of college tuition are not unforeseeable emergencies. A distribution on account of unforeseeable emergency may not be made to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not itself cause severe financial hardship, or by cessation of deferrals under the Plan.
What funds are available for investments?
Participants are able to choose and allocate contributions into a variety of investment options. Since everyone’s investment strategy is unique, HART offers fund diversification. The current investment funds available are:
Click on the symbol in the left column to review fund details
|VMFXX||Vanguard Federal Money Market Fund Investor Shares|
|DODIX||Dodge & Cox Income Fund|
|VBTIX||Vanguard Total Bond Market Index Fund Institutional Shares|
|PHYQX||Prudential High-Yield Fund Class Q|
|VAIPX||Vanguard Inflation-Protected Securities Fund Admiral Shares|
|VTINX||Vanguard Target Retirement Income Fund Investor Shares|
|VTXVX||Vanguard Target Retirement 2015 Fund Investor Shares|
|VTWNX||Vanguard Target Retirement 2020 Fund Investor Shares|
|VTTVX||Vanguard Target Retirement 2025 Fund Investor Shares|
|VTHRX||Vanguard Target Retirement 2030 Fund Investor Shares|
|VTTHX||Vanguard Target Retirement 2035 Fund Investor Shares|
|VFORX||Vanguard Target Retirement 2040 Fund Investor Shares|
|VTIVX||Vanguard Target Retirement 2045 Fund Investor Shares|
|VFIFX||Vanguard Target Retirement 2050 Fund Investor Shares|
|VFFVX||Vanguard Target Retirement 2055 Fund Investor Shares|
|VTTSX||Vanguard Target Retirement 2060 Fund Investor Shares|
|VLXVX||Vanguard Target Retirement 2065 Fund Investor Shares|
|PAAIX||PIMCO All Asset Fund Institutional Class|
|JDEUX||JPMorgan Disciplined Equity Fund Class R6|
|VFIAX||Vanguard 500 Index Fund Admiral Class|
|VIMAX||Vanguard Mid-Cap Index Fund Admiral Shares|
|HMDYX||The Hartford MidCap Fund Class Y|
|VSMAXVSMAX||Vanguard Small-Cap Index Fund Admiral Shares|
|TRSSX||T. Rowe Price Institutional Small-Cap Stock Fund|
|VTSNX||Vanguard Total International Stock Index Fund - Institutional Class|
|RERGX||American Funds EuroPacific Growth Fund Class R-6|
|DFEMX||DFA Emerging Markets Portfolio Institutional Class|
|AREDX||American Century Investments Real Estate Fund R6 Class|