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.
Contributions
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).
Withdrawals
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.
Distributions
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 the variable product and its underlying fund options as well as mutual funds offered through a retirement plan before investing. The prospectuses/ prospectus summaries containing this and other information can be obtained by contacting your local representative. Please read the information carefully before investing.