The restriction will not affect your regular contribution or the ability to leave state service and withdraw your money. Transfers of $1,000 or less are not impacted by the trading restrictions.DRS periodically reviews trade data to identify excessive trading. If existing restrictions are not sufficiently addressing excessive trade practices, DRS might take additional action. DRS reserves the right to establish or revise restrictions to comply with federal or state regulations, or as circumstances indicate. DCP can accept rolled funds from previous employers held in eligible retirement plans such as 457(b), 401(k), 403(b) and traditional, pretax IRA accounts.

You can only use dollars from your pretax DCP balance. However, you can take a distribution from your Roth and use it to purchase additional service credit. You can choose to contribute to both or either option. You’ll be able to review and access both balances using your online account. The combined contributions for both options must fall within IRS annual limits. Box 1 on form W2 reflects your taxable gross earnings.

File your taxes, your way

• The amount shown in box 14 as UCRP, is the amount of retirement compensation you earned.
• Viewing past performance can provide you with insight into how a particular investment works and can help you determine what is “normal” behavior for an investment.
• For specific tax information, consult your tax advisor.
• IRA contributions may still qualify for a full or partial income tax deduction, depending on your adjusted gross income and tax filing status.

The Payroll Office cannot supply tax return forms, but see next question. Transfers among funds are allowed at any time on Fidelity’s website. Some restrictions apply to transfers into or out of the ICC Fund. The DCP is a qualified retirement plan administered by the University of California Employee Benefits Office in the Office of the President. PerformancePast investment performance is no guarantee of future results. So why do we share past performance if it can’t predict future returns?

So every quarter would be calculated based on the exact account balance and performance at the time. While DRS and the DCP record keeper can provide you with information about investments, we cannot offer investment advice. If you are still not sure which investment approach might be right for you, talk with your financial advisor.

• For this example, let’s use the 2035 Retirement Strategy Fund for DCP.
• A student who loses exemption status will contribute on a pre-tax basis 7.5% of gross wages to the Defined Contribution Plan and 1.45% of earnings to Medicare.
• This example is simplified because normally your investments would vary each quarter depending on your contributions and the performance of the market.
• Rollovers can include a rollover out (moving funds out of an account) and a rollover in (moving money into an account).
• You can also contact the record keeper for assistance.

Information for beneficiaries

To find out more about each fund, see each investment’s Fund Fact Sheet (linked within each plan’s section). These fact sheets are prepared by the fund managers and contain information about performance, asset mixes and the goals of the fund. Make investment changes through your online account. Change your fund selections anytime during or after your employment. You can also contact the record keeper for assistance. The management cost for the individual investment and the administrative costs applied to all plan investments.

Your portfolio should include investments in several different objective categories. Spreading your assets among different types of investments might help you achieve a favorable rate of return while minimizing your overall risk of losing money. Although diversification is not a guarantee against loss, it is an effective strategy to help you manage investment risk. If the DRS record keeper, Voya Financial denies your request for distribution, you’ll receive a letter with instructions to request further review by DRS if you wish. If you are rolling eligible Roth funds into DCP, you’ll need to know the date you started contributions for the account.

If you roll your DCP funds directly over into a traditional IRA or eligible retirement plan, the funds won’t be taxed dcp-cas w2 until you withdraw them. If you roll over into a Roth account, the rules could be different. Check with the IRS to learn how this choice will impact you. DCP offers a variety of professionally managed investment options, including “one-step” funds that automatically rebalance the asset mix as you move toward your target date for retirement.

Once you are enrolled in DCP, update your beneficiaries online through /oaa. Or complete the paper form (Beneficiary Designation) and mail it to DRS. You will receive a 1099 tax statement for the year of the withdrawal. Your contributions will be invested in the Retirement Strategy Fund that assumes you’ll begin withdrawing funds at age 65. This means if you were contributing to both options, you’d be contributing at least 1% each to Roth and 1% to pretax.

How is the minimum payment calculated?

These dollars remain in the pension trust fund and are only available to you as part of a monthly pension retirement income. To calculate your own RMD withdrawal, use the table linked below. The distribution period is the number you divide your total investment account balance by to get the required minimum amount. With the DCP Roth option, your contributions are deferred from your already taxed income. Roth withdrawals, including any investment earnings, are not taxed if you meet the minimum qualifications.

Less tax on your withdrawals could mean more money in your pocket during your retirement. Your retirement savings needs may vary—talking with a financial professional can help you determine which option is best for you. This information about required minimum distributions is a summary.

Payroll

As explained in items A and B below, there are certain types of student income which are exempt from Student FICA. International students who are nonresident aliens are always exempt from Student FICA. The body of the receipt will contain the explanation under “Deduction” that an amount has been withheld for “DCP CAS SAV R” or DCP Casual Savings Reduction. During the academic year, a registered graduate student who has advanced to Ph.D. candidacy is not subject to the unit requirement but is subject to the less than 80% requirement.

With the One-Step Investing approach, your Retirement Strategy portfolio is already well diversified and will automatically adjust as you move closer to your target date. With the Build and Monitor approach to investing, you can allocate your contributions among the seven available funds to achieve diversification. At this time, DRS is not implementing the optional SECURE 2.0 Act provision that increases catch up contributions for individuals age 60 to 63. Automatic enrollment does not include student employees or retirees returning to work, even if they fit the newly hired/full time employee status. For tax reporting purposes, wages are reported when they are paid, rather than when they are earned.

If you separate from employment and later return to work for an employer who participates in DCP, you can reenroll anytime. If any payments from your account have started, they will stop. Because DRS only recovers the cost of administering DCP, we keep the fees low. The DCP administrative costs include WSIB, recordkeeping and the DRS administrative cost.

How to withdraw from DCP

The DRS record keeper maintains the records for Plan 3, DCP and JRA customer investment accounts and assists customers with transactions related to these accounts. Voya Financial is the DRS record keeper for DCP, Plan 3 and JRA customer investment accounts. They can assist you with transactional needs and account information. The percentage is calculated from the total gross salary for the pay period, before any deductions are applied.