When can I receive a distribution from my account?
Qualifying distribution events are as follows:
- retirement (including retirement due to permanent disability);
- unforeseeable emergency (as defined by the Internal Revenue Code and your Plan's provisions);
- severance of employment (as defined by applicable Internal Revenue Code provisions);
- attainment of age 72
- death (your beneficiary receives your benefits);
- in-service transfer to purchase service credit.
Participants are not required to take a distribution until they are 72 and can leave their account balance in the Plan until that time, even if a qualifying event has occurred.
All distributions are subject to ordinary income tax unless it is directly rolled over to another eligible plan that accepts rollover or IRA or the distribution is used as an in-service transfer to purchase service credit.
What are my distribution options?
- Leave the value of your account in the Plan until a future date;
Roll over your account balance to an eligible governmental 457(b), 401(k), 403(b) or 401(a) plan or to an IRA.
- periodic payments;
- fixed annuity payments;
- partial lump sum with remainder paid as periodic payments;
- a lump sum;
Each distribution is subject to ordinary income tax unless it is rolled over to another eligible plan or IRA, or if it is an in-service transfer to purchase service credit. Ordinary income tax will apply once you begin taking distributions from the account you roll the money into.
What are my distribution options while I’m still employed?
PERS Service Credit Purchase
You may request a transfer from your NDC account to Nevada PERS for service repurchase or payment while you are still working. This is a non-taxable transfer. To determine eligibility and cost, please contact Nevada PERS at 1 (866) 473-7768.
Unforeseen Emergency Withdrawal
You must provide proof of financial hardship based on an unforeseen emergency. Strict federal guidelines determine whether or not your request will be approved. Contact your provider for forms and process. For more information on the federal guidelines, please visit the IRS website.
This provision is only available to participants who have less than a $5,000 account value and have not contributed to the Program in the previous 24 months.
What happens to my accounts when I die?
Your designated beneficiary(ies) will receive the remaining value of your account, if any. Your beneficiary must contact a Voya Financial representative to request a distribution.