How Do I Roll Over Money?

You don’t have to move your money out of your Plan account when you retire or separate from service. In fact, you can even roll over most of your other retirement accounts into the Plan.

Not every retirement plan is as special as your New York State Deferred Compensation Plan. The Plan was created specifically for New York public employees and their beneficiaries. Plan participants experience some of the lowest overall costs available.

Rolling money into your Plan

You’re welcome to consolidate nearly all of your other retirement assets into the Plan and continue to benefit from the tax advantages and flexible options at retirement. We can help you manage your investments in one place.

Keep in mind that qualified retirement plans, deferred compensation plans and individual retirement accounts are all different, including fees and when you can access funds. Assets rolled over to your account(s) from plans other than a 457(b) may be subject to a 10% tax penalty if withdrawn before age 59½. You should also be aware of any fees or surrender charges other plans may charge when transferring out. Neither the Plan nor any of its Account Executives may give legal or tax advice. Please contact your legal or tax advisor for such advice.

To roll money into your Plan, complete and return an Incoming Asset Transfer Form (PDF).

Rolling money out of your Plan

You may roll your Plan assets to other retirement plans such as qualified employer plans (401(k), 403(b), etc.) or an IRA, when you separate from service.  Withholding taxes may apply if the rollover is not a direct rollover. Distributions made prior to age 59 ½ from other types of retirement plans may also be subject to the 10% early withdrawal penalty tax, unless an exception applies. You should also be fully aware of the expenses of any alternative investments you may be considering. Carefully consider taxes and fees before considering transferring assets into or out of the Plan.

Before rolling money out of the Plan, consider the rollover questions you need to ask (PDF).

In-Plan Roth Rollovers

Thanks to a 2010 law, participants who are eligible to receive a regular distribution may convert some or all of their Plan assets to Roth (after-tax) assets without having to take an actual distribution.

The amount of the In-Plan Roth Rollover is subject to ordinary income taxes in the year of the rollover. It is very important that anyone contemplating this transaction fully understand the impact this will have on their income taxes including estimated tax payments. Under federal law, once a rollover is processed, it is irrevocable and cannot be reversed.

Get the help you need

To roll money into or out of your account, call the HELPLINE.

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This material is not a recommendation to buy, sell, hold or roll over any asset, adopt an investment strategy, retain a specific investment manager or use a particular account type. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. Investors should work with their financial professional to discuss their specific situation.

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