The Ohio State University Alternative Retirement Program (ARP) Overview
Below are some of the important features about your Plan. This website is intended to be a summary of the plan provisions. In the event that a conflict exists between the information contained within this website and the plan document, the plan document provisions prevail. For more information, contact us.
You and your employer each contribute a certain percentage of your total compensation to the program -- the actual percentage amounts are determined by your university's plan document. Your salary is then "reduced" by the amount of your contribution which, along with the employer's contribution, is sent to Voya Retirement Insurance and Annuity Company and invested according to your instructions. Because these contributions are made on a pre-tax basis, you won't be taxed until you begin taking distributions.
You are always 100% vested in your contributions and any earnings on your contributions; vesting schedules may apply to employer contributions (please see your plan document for details).
While you are employed, withdrawals are not permitted unless there is a death, disability, or separation from service (including retirement) per each university's plan provisions.
Certain eligible withdrawals are subject to a mandatory 20% withholding. You will receive a special tax notice at the time you request a withdrawal that explains this federal withholding requirement.
In addition, an IRS 10% premature distribution penalty tax may be assessed on any withdrawal unless you:
- Rollover funds to another eligible retirement plan or an individual IRA account;
- Leave the Ohio public higher education system on or after age 55;
- Attain age 59½;
- Become disabled;
- Die; or
- Receive the funds under a settlement option that provides for substantially equal periodic payments (not less frequently than annually) payable over your lifetime or the lifetime of your beneficiary.
Additional exemptions may apply. Neither Voya Financial® nor its affiliated companies or financial professionals provide tax or legal advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.
There are several distribution options to choose from including:
- Lump sum
- Systematic distribution options
- Variety of fixed and/or variable lifetime-based or period certain payout options
Distributions will be taxed as ordinary income in the year the money is received, and may be subject to a 10% federal tax penalty if received prior to age 59½. Keep in mind, the IRS requires that you begin receiving Required Minimum Distributions (RMD) at the later of when you attain age 70 ½ or retire.
You should consider the investment objectives, risks, and charges and expenses of mutual funds offered through a retirement plan carefully before investing. The fund prospectuses and information booklet containing this and other information can be obtained by contacting your local representative. Please read the information carefully before investing.
Mutual funds under a custodial or trust account agreement are intended as long-term investments designed for retirement purposes. Money distributed from a 403(b) plan and 401(a) plan will be taxed as ordinary income in the year the money is distributed. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than the original amount invested. A group fixed annuity is an insurance contract designed for investing for retirement purposes. The guarantee of the fixed account is based on the claims-paying ability of the issuing insurance company. Although it is possible to have guaranteed income for life with a fixed annuity, there is no assurance that this income will keep up with inflation. Early withdrawals, if taken prior to age 59½ will be subject to the IRS 10% premature distribution penalty tax, unless an exception applies. An annuity does not provide any additional tax deferral benefit; tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does offer other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.
Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) Voya Retirement Insurance and Annuity Company (“VRIAC”), Windsor, CT. VRIAC is solely responsible for its own financial condition and contractual obligations. Plan administrative services provided by VRIAC or Voya Institutional Plan Services LLC (“VIPS”). VIPS does not engage in the sale or solicitation of securities. All companies are members of the Voya® family of companies. Securities distributed by Voya Financial Partners LLC (member SIPC) or third parties with which it has a selling agreement. Custodial account agreements or trust agreements are provided by Voya Institutional
Trust Company. All products and services may not be available in all states.