Kentucky offers new Deemed IRA choices to deferred compensation participants
FOR IMMEDIATE RELEASE
August 9, 2007
Chad Green (614) 677-1679
Carah Brody (614) 677-0275
Columbus, OH— The Kentucky Public Employees’ Deferred Compensation Authority (Authority) has made Deemed IRA (Individual Retirement Account) options available to plan participants effective July 1, 2007. Kentucky is the first state to have received non-bank trustee status from the Internal Revenue Service enabling it to offer both Deemed Traditional and Roth IRAs.
“We want our employees to view us as a one-stop-shop for their supplemental retirement savings needs,” said the Authority’s Executive Director, Bob Brown. “Deemed IRAs, both Traditional and Roth, are an exciting addition to our supplemental retirement savings program and they will complement very well the 457(b), 401(k) and Roth 401(k) options that we currently offer our participants.”
A Deemed IRA provides participants the opportunity to keep their IRA assets in a separate account within the Authority’s 401(k) Plan. Participants can choose to contribute to a Deemed IRA through automatic payroll deductions (providing the employer has elected to make the deductions), or by direct payment methods, such as a personal check or money order (Employees of participating employers who elected not to make the IRA deductions may use this direct pay method). This flexibility makes it easy for participants to include IRA contributions as part of their overall retirement savings strategy. Terminated or retired participants who have maintained at least a $5,000 balance in their Authority accounts are allowed to roll over existing IRA accounts from other providers.
With support from its recordkeeper, Nationwide Retirement Solutions, the Authority has created a variety of educational materials to help participants decide if a Deemed IRA may be right for them. These materials include side-by-side comparisons of Deemed Roth and Traditional IRAs and the Authority’s existing Roth 401(k) option to help employees better understand the differences.
“Our partnership with the Kentucky plan is successful because we share a common goal,” said Matt Riebel, president of Nationwide Retirement Solutions. “Like the Authority, Nationwide Retirement Solutions is committed to providing participants the tools they need to help build life-long financial security while making that achievement as simple as possible.”
for more information on the Authority’s Deemed IRA offerings, employers and employees should contact a Kentucky Plan Service Representative at 1-800-542-2667.
About the Authority
Sponsored by Kentucky State Government and administered by Kentucky State Government
employees, the Kentucky Public Employees’ Deferred Compensation Authority (which receives no tax dollars) benefits employees of state and local government, public school and university employees. Established in 1975, the Authority’s Program serves over 70,000 employees and has $1.5 billion in assets.
About Nationwide Retirement Solutions
Nationwide Retirement Solutions, founded in 1973, is a subsidiary of Nationwide Financial Services, Inc®. The company provides recordkeeping, education and administrative services for public employee deferred contribution plans that serve more than 1.5 million government employees with more than $40 billion in assets under management.1
Nationwide, Nationwide Financial, the Nationwide Framemark and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company.
Information provided by Retirement Specialists is for educational purposes only and is not intended as investment advice. Retirement Specialists are Registered Representatives of Nationwide Investment Services Corporation. In MI Only: Nationwide Investment Svcs. Corporation.
1Company records as of August 2006
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Investments Retirement Insurance nationwide.com One Nationwide Plaza Columbus, OH 43215-2220 Investments Retirement Insurance nationwide.com One Nationwide Plaza Columbus, OH 43215-2220