What is the ma smart plan?
The Massachusetts Deferred Compensation 457 SMART Plan is a retirement savings program available for Commonwealth of Massachusetts state and municipal employees. Eligible employees can save and invest before-tax and after-tax dollars through salary deferrals into our wide array of low fee investments options.
Can you withdraw from Ma smart plan?
You can withdraw less than 100% of your SMART Plan balance as a partial lump-sum payment after severance of employment and then also elect a periodic payment option for the remaining balance. This option allows you to keep your remaining balance in the investment options available under the SMART Plan.
What is an OBRA retirement plan?
The Omnibus Budget Reconciliation Act of 1990 (OBRA) allows governmental employers under certain circumstances to use a deferred compensation plan described in Section 457(b) of the Internal Revenue Code in lieu of paying and withholding Social Security/FICA taxes for employees that participate in such plans.
How does the smart plan work?
How does the SMART Plan work? The SMART Plan is a retirement savings program authorized under section 457 of the Internal Revenue Code (IRC). Section 457 programs, commonly called 457 deferred compensation programs, allow eligible employees to save and invest before-tax and after-tax dollars through salary deferrals.
Do Massachusetts state employees get a pension?
State employees are eligible for a pension at any age with 20 years of creditable service. Members can calculate their own retirement benefit estimate using the above Retirement Percentage Chart. Information on how benefits are calculated can be found in the MSERS Retirement Benefit Guide.
Is OBRA a pension?
OBRA – Defined Contribution Retirement Plan.
How do I get my Obra money?
For more information or to access a Distribution Request form, please contact the SMART Plan Service Center at 877-457-1900 or visit www.mass-smart.com > About your plan > OBRA > Forms. If you die before receiving all of your SMART Plan assets, the funds will go to your designated beneficiary.
What is the Smart 457 plan?
The Plan is established under the Internal Revenue Code Section 457, which allows eligible employees to save and invest before-tax or Roth 457 contributions through salary deferrals. The Massachusetts Deferred Compensation SMART Plan is a voluntary retirement savings program.
How much can you defer on a 457 plan?
457(b) Plan/MA SMART Plan. You may voluntarily defer additional income into the 457(b) plan/MA SMART Plan through Empower Retirement up to the IRS limit of $19,000 if you are under 50 years of age, or $25,000 if you are 50 years or older.
How do I access a 403(b) or 457(b)?
To access a 403 (b) & 457 (b) Comparison Chart, refer to the 403 (b) or 457 (b) section on the Benefit Summaries page of the website. If you have questions, feel free to call the Benefits Department in the HR Service Center at 508-856-5260, option 1, option 1 for assistance.
What are the tax benefits of the Roth 457 option?
With the Roth option, your contributions are made with after-tax dollars. Therefore, your contributions are non-taxable when distributed and earnings are also non-taxable, provided that the distribution occurs after age 59 1/2 years, or upon disability or death AND no earlier than 5 tax years after your first Roth 457 (b) contribution.