Frequently Asked Questions
Question:
How do I enroll in the City of Milwaukee Deferred Compensation Plan?
Answer:
View
Joining the Plan for the City of Milwaukee Deferred Compensation Plan enrollment information.
Question:
How do I change my address on my account?
Answer:
Active employees who are currently deferring to the Plan must change their address or name with their local payroll office. No further action should be needed. Terminated or retired Plan participants, beneficiaries and Alternate payees can 1) call the Information Line at 844-360-MDCP (844-360-6327), verify their Social Security number and password and provide their updated address to a Customer Service Associate or 2) change their address online after logging into their password-protected account.
Question:
How do I verify or change my beneficiary?
Answer:
You can view your current beneficiary designations or make beneficiary designations on this website by going to
Personal Information.
Question:
What is the maximum I can contribute from my paycheck?
Answer:
You may contribute between 1% and 80% of your monthly gross compensation on a before-tax or Roth after-tax basis, provided the amount does not exceed the current IRS annual contribution limits. Please refer to
www.voya.com/IRSlimits for current limitations.
Question:What is the difference between before-tax and Roth after-tax contributions?
Answer:
You do not pay taxes on before-tax contributions, in turn lowering your current taxable income. Instead, your before-tax contributions and their related earnings are taxed at withdrawal, just like ordinary income. Roth after-tax contributions are taxed today but let you build a nest egg of tax-free income in retirement, provided certain conditions* are met. For more details, visit
www.voyadelivers.com/roth.
*If you keep the Roth money in your account for at least a five taxable-year period, and are age 59½ or older (or upon your death or disability), you’ll pay no taxes on those contributions or earnings when you withdraw them.
Question:
Can I change/stop my contribution amount?
Answer:
Yes, you may change or cancel your contribution amount at any time by logging into your account with your password and accessing through the Contribution & Savings section of this website by selecting "Manage Contributions", or by calling the Information Line at 844-360-MDCP (844-360-6327). The change will take effect as soon as administratively possible the month after your change is requested.
Question:
What is the Age 50 Catch-Up?
Answer:
If you are age 50 or older, and contribute to the annual limit, may also be eligible to contribute an additional amount as catch-up contributions. Please refer to
www.voya.com/IRSlimits for current limitations.
Employees who have not contributed at the maximum deferral rate may be permitted to make extra "Three year 457 Catch-up" contributions to the Plan in the three years prior to attaining their normal retirement age. The total amount of contributions (normal and catch-up) cannot exceed IRS contribution limits. If you are interested in participating in the catch-up program, please contact the Information Line at 844-360-MDCP (844-360-6327).
You may not participate in the Age 50 and Over Catch-Up and the Three year 457 Catch-Up described above in the same calendar year. You may change your contribution amount or stop contributions at any time through the Contributions & Savings section of this website by selecting Change Contributions or by calling the Information Line at 844-360-MDCP (844-360-6327).
Question:
Can I use the Special 3-Year Catch-Up with the Age 50 and Over Catch-Up?
Answer:
No. A participant cannot use both catch-up provisions in the same tax year.
Question:
Can I make rollover contributions to my Plan account?
Answer:
Yes. You may transfer or roll all of your pre-tax or Roth after-tax dollars into your City of Milwaukee Deferred Compensation account from a:
- 457 deferred compensation plan or investment provider
- Traditional pre-tax IRA (Individual Retirement Account) [only on a pre-tax basis]
- 401(k) or 403(b) account established with a previous employer
- 401(a) pension plan [only on a pre-tax basis]
Question:
What kind of transactions and services are available via the website, telephone or mobile app?
Answer:
You can:
- Check your account balance.
- Check fund performance and fund prices.
- Make or change your investment elections.
- Transfer balances from one fund to another.
- Reallocate balances.
- Elect automatic rebalancing
- Initiate a loan
Question:
When are transactions effective?
Answer:
Transactions completed before 3 p.m. Central time are effective the same business day. Transactions completed at or after 3 p.m. Central time are effective the next business day, except contribution deferral changes which are effective as soon as administratively possible.
Question:
Can I cancel a transaction after I receive a confirmation number?
Answer:
Yes, transactions can be canceled any time before 3 p.m. Central time on the same day.
Question:
What are frequent trading restrictions?
Answer:
These are policies instituted by the individual fund managers to protect long-term shareholders and discourage short-term trading.
Question:
What withdrawal options do I have while I am still employed?
Answer:
You are allowed four different types of in-service withdrawals:
- A qualified unforeseeable emergency as defined by the IRS
- A qualified de minimis withdrawal
- An Age 70.5 Withdrawal
- A Rollover Withdrawal (Non-Roth and Roth Rollover Sources)
Question:
What distribution options do I have when I leave employment?
Answer:
If you separate from service, you can leave your entire account balance in the Plan until you are required to take minimum distributions at age 73. If you do want to withdraw some money, you have the following distribution methods or options:
- Lump-sum Distribution,
- Partial Lump Sum,
- Installment Payments (specified number of payments or specific dollar amount)
- Required Minimum Distributions
- Direct Rollover
- Convert Pre-tax Dollars into Roth After-tax Dollars
- Combination of the above
For more information regarding the distribution options in the Plan, please review the
Plan Highlights section of this website.
Question:
Do I have to pay taxes and/or penalties on the money I withdraw from the Plan?
Answer:
Withdrawals from your pre-tax account are subject to State and federal income taxes. However, you are only taxed on withdrawal from the Plan. If you have a Roth 457 account, withdrawals are tax free as long as the distribution is at least five years after the contribution date and you are either over age 59½, disabled, or the distribution is made to your beneficiary subsequent to your death. Withdrawals from section 457 deferred compensation plan assets do not have a penalties assessed because of your age. If you have rolled assets into the plan from a qualified plan additional rules may apply if you are under age 59 ½. Refer to the plans Special Tax notice for more information.