Your RIC accounts are very flexible when it comes to change options. When your goals, risk tolerance, or retirement income needs change, ask a provider representative to help you make changes to your accounts, if necessary.
If your name, address, or beneficiary changes, you must contact your provider to update the information.
Changes While Employed
If you are currently contributing to RIC, you have the option to change your:
- Taxation of deductions
- Deduction amount
- Fund selection
- Provider transfer
- Beneficiary designations
- 3-year catch-up benefit
List items for Changes While Employed (PSE)
You may change your payroll deduction elections at any time by completing a RIC Account Form. Remember that all money deposited into the 457 must go through your paycheck.
If you are terminating from employment and would like to defer final payouts (such as paid time off) with your last check, please indicate the final paycheck deferral amount and effective date on the RIC Account Form.
Check your employer page to see if 457 post-tax Roth contributions are allowed in your plan. If your employer allows Roth (post-tax) contributions, you may change the way your payroll deductions are taxed at any time.
You may choose to have your deductions taken pretax (before state and federal tax withholding) or post-tax Roth (after state and federal tax withholding) or a combination of pretax/post-tax.
To make a change to the taxation of your payroll deductions, complete the RIC Account Form.
You may change your personal information at any time. Call your provider directly for changes to your name, address or beneficiary designation. The RIC office does not need notification of these changes.
You may change your investment selections at any time with no fees. Call your provider or change your selection online (see the provider section for web access).
- You may choose to sell any or all of their current investments and reinvest in alternative investments within RIC.
- Active RIC contributors may redirect future contributions to alternative investments within RIC.
A provider transfer refers to the movement of some or all of your RIC dollars from one investment provider to another provider in the plan.
To complete a transfer, be sure to:
- establish an account with the receiving provider
- complete the Transfer Between RIC Providers form
- complete your plan's RIC Account Form for payroll deduction changes if applicable
Transfers between providers are not recommended unless you have been dissatisfied with your current provider services or investments over a reasonable amount of time. Investments have no restrictions or fees for transfers.
You may redirect your future contributions to different investments (within your provider product) at any time. There are no transaction fees. You may wish to keep invested assets as they are or reallocate them to different investment options. Call your provider directly or logon to your provider's website and change your accounts online.
You may change your beneficiary at any time by calling your provider directly.
Changes & Distributions for Former Employees
Once you leave your current employer, you have a variety of options and are eligible to take a distribution at any time. Non-State Public Employers: Distribution Summary
List items for Changes for Former Employees (PSE)
If you choose to leave your money invested in RIC after leaving employment, no forms are necessary. When you leave your current employer, your money may stay fully invested in RIC until you decide to take income or reach the age at which IRS required minimum distributions (RMD) must begin.
You have access to your account to make investment selection changes, provider changes, or distributions at anytime (inactive provider products may have restrictions and/or fees).
To request a distribution, call your provider directly.
You may take income in one or any combination of ways shown below.
- Total lump sum distribution
- Partial lump sum distributions
- Systematic/periodic payments (flexible)
- Lifetime payments (irrevocable)
Required minimum distributions (RMD) from RIC accounts must begin by the IRS required beginning date. Failure to begin distributions on time may result in an IRS penalty on the RMD amount. Mandatory tax withholding applies to taxable distributions; exemptions include RMDs taken on time, lifetime annuity payments or taking a series of equal payments for 10+years. If exempt, taxes will be withheld unless elected otherwise.
Your provider will calculate your RMD upon request. If you do not elect a lifetime income annuity option, you are free to take more than your required minimum amount at anytime.
To request a distribution, please contact your provider to determine what payment options are available in your investment.
- 457 Pretax Assets
Taxable distributions of pretax 457 assets are taxed as ordinary income and reported on an IRS 1099 Form. 457 assets have no age penalties once separated from employment. - 401a Pretax Assets
Taxable distributions of pretax 401a assets are taxed as ordinary income and reported on an IRS 1099 Form and subject to an IRS 10% penalty prior to age 59 1/2. - 457 Roth (post-tax) Assets
Roth contributions are tax-free at distribution but the earnings (if any) are tax-free only if qualified.
Qualified Roth Distributions
- You have a distributable event:
- Separation of employment
- Age 70 ½, death
- Eligible cash out (small accounts)
- You have held your account for 5 years or longer
- You are either 59 ½ or older, disabled, or deceased
When you file to receive IPERS benefits, you may request to move money (plan-to-plan transfer) from your RIC pretax 457/401a accounts to IPERS to purchase eligible IPERS service credits. This is a non-taxable transfer. Other tax-advantaged accounts such as IRAs, 401(k)s, 403(b)s, etc., may also be options for funding an IPERS purchase.
To explore the possible benefits of purchasing IPERS and determine your eligibility, review Purchasing Service on the IPERS website. If you have questions, contact IPERS toll free at 800-622-3849 (281-0020 in Des Moines) or email them at Info@ipers.org.
If IPERS approves your request to purchase, they will send you a cost quote. You may request to rollover your pretax RIC 457401a money to make the purchase. Simply forward to us (fax 515-281-5102) your IPERS Rollover/Transfer form and a copy of your IPERS cost quote; we will request the rollover from your provider.
RIC will send you a copy of your rollover paperwork (signed by RIC) and your provider will send you a check for the amount you requested. Forward the check and the IPERS forms to IPERS within 60 days to complete the purchase.
When you leave your current employer, you have the option to roll over all or a portion of your RIC assets. This is a non-taxable event. Please Note: 457 money rolled out of RIC loses its “no age limitation” status.
- Pretax 457/401a assets may roll to an eligible IRA at any financial institution or a 457, 401(k), 401(a), 403(b), 403(a), or SEP plan.
- Post-tax Roth 457 assets (if allowed by your employer) may roll to an eligible Roth IRA or other 457 Roth.
If you wish to request a rollover, contact your provider.