If you participated in the Hybrid Retirement Plan, the Commonwealth of Virginia 457 Deferred Compensation Plan or another VRS defined contribution plan, your account remains with you in retirement. You decide how and when to access those savings.
Consider Keeping Your Savings in the Plan
Low fees and a wide range of investment choices make VRS defined contribution plans a cost-effective option for retirement savings. Many retirees leave their money in the plan, where it stays invested and grows tax-deferred.
Review your funds and make updates in your DCP Account.
Choose From Distribution Options
You can draw from your DCP in one or a combination of ways:
- Lump sum. Withdraw your entire balance at once or take a partial withdrawal.
- Periodic payments. Set up automatic withdrawals on a schedule that works for you, such as monthly or quarterly.
- Annuity purchase. Convert some or all of your account into an annuity for guaranteed monthly income.
- Rollover. Transfer your balance into another eligible retirement account, such as an individual retirement account, to keep your funds tax-deferred.
Details on each option are in the Leaving Employment Guide for your plan.
Know Your RMD Requirements
The IRS requires you to withdraw a minimum amount from your deferred compensation accounts each year once you reach a certain age. If you were born between January 1, 1951, and December 31, 1959, your required minimum distribution age is 73. If you were born on or after January 1, 1960, it is 75. Retirees born before 1951 began RMDs at age 70 1/2 or 72 and should already be receiving annual distributions. See the RMD Checklist for details.
Your first RMD generally must be taken by April 1 of the year following your 73rd or 75th birthday, and by December 31 each year after that. Missing the deadline can result in a 25% tax penalty on the amount not withdrawn.
Connect With a Specialist
DC Plans Education Specialists through Voya Financial can help you sort through your distribution options, set up payments and plan for RMDs. Consultations are available in person or virtually. Find your regional specialist or call the VRS Defined Contribution Plans Service Center at 877-327-5261, weekdays from 8 a.m. to 9 p.m.
