Deferred Compensation

Miami-Dade County’s Deferred Compensation programs with Nationwide and ICMA-RC have implemented and adopted the following CARES Act Provisions:

• Coronavirus-Related Distributions (CRDs) up to $100,000 until December 31, 2020
• Suspension of loan repayment only until at least January 1, 2021. Loan interest will continue to accrue during the suspension period
• Waiver of 2020 Required Minimum Distributions (RMDs).

For more information, contact the Plan Sponsor Services directly for ICMA-RC at 800-326-7272 and Nationwide at 877-677-3678.

You can enroll online directly with our providers:

• ICMA-RC
• Nationwide Retirement Solutions

Participants can go online or call their providers to change their payroll contribution amount.

Social Security and the Florida Retirement System are not intended to replace all of your current income when you retire. The sooner you start a savings plan, the more time your money has to grow. The Deferred Compensation Plan can be used to supplement your Florida Retirement System and Social Security benefits.

Seek the advice of an accountant or other professional for investment assistance.

You can schedule withdrawals from your account once you retire or leave County employment. There is no minimum age requirement or waiting period for you to begin receiving payments. Contact your plan provider to start receiving your payout.

Payment options include:

• Lump sum
• Installment payments
• Irregular payments
• Guaranteed monthly payments for life

At age 50 you can contribute an extra $6,000 per year to help “catch-up” the funding of your retirement account.

When you are within three years of your normal retirement age, a special “catch-up” provision allows you to contribute up to $36,000.

Both provisions can’t be used at the same time.

You can apply for a loan using funds from your IRA. This will reduce the earnings potential for your account.

You must repay the loan with after-tax dollars. If you decrease contributions to your IRA in order to repay the loan, this will further reduce your potential earnings. If you do not repay the loan, the balance becomes taxable income.

There are no restrictions on the use of the loan. The maximum loan amount is half of your account balances, up to $50,000. The maximum term for loans is 15 years for the purchase a primary residence. The repayment may be up to 5 years for general loans.

Loan interest cannot be deducted on federal income tax returns.

It takes up to three business days to process a loan request and a week before receiving payment.

Only one loan is allowed per calendar year. There is no early payoff penalty. Only one loan can be outstanding at a time.

Repaying the loan through payroll deductions is not an option. Loans must be repaid from your bank account using electronic fund transfers.

The interest rate for NRS loans is prime + 1 percent. For NRS accounts, contact the plan administrator to be screened for eligibility and request a loan package.

The interest rate for ICMA-RC loans is the prime rate + 0.5 percent. For ICMA-RC accounts, request the loan package by calling the plan administrator or online using their website.

You may be able to withdraw money from your account while you are still working. The funds can’t be withdrawn easily or quickly.

A sudden and unexpected emergency may create a severe financial hardship. Accidents, medical expenses or property loss not covered by insurance could create hardships.

The amount you can withdraw is limited to what will relieve the hardship.

Contact your provider directly to request an emergency withdrawal packet.