457(b) and 401(a) plans
An excellent way to save for retirement
Welcome to the website VALIC has created especially for you, as an employee eligible to participate in the State of Iowa 457(b) and 401(a) retirement plans. As a provider for your retirement plans, VALIC is committed to providing personal service whenever and wherever it is convenient for you.
The plan highlights are only a brief overview of the plan's features and are not a legally binding document. The information in this section does not modify the terms of the plan and in the event of a conflict, the terms of the plan control.
Take advantage today
Participation in the plan is open to:
- Any non-temporary executive, judicial or legislative branch employee who is regularly scheduled for 20 or more hours of work per week or has a fixed annual salary.
The plan does not allow legislators to participate in the employer contributions portion of the plan.
There is no age or service requirement for eligible employees to participate in the plan.
Starting early has its advantages
The maximum amount you are allowed to contribute to your 457(b) plan is based on your taxable compensation as defined by the Internal Revenue Code. Special catch-up provisions may also be available.
If you have an existing qualified retirement plan (pre-tax) or deferred compensation plan account with a prior employer or hold a traditional IRA account, you may transfer or roll over that account into the 401(a) plan anytime. Only funds from other 457(b) plans of governmental employers may be rolled over to the 457(b) plan. Funds rolled over to the 457(b) plan become subject to the 457(b) plan's withdrawal restrictions. Please check with your former provider first, to see if surrender charges are applicable.
You may stop your contributions anytime. Once you discontinue contributions, you may only start again as provided under the terms of the plan.
The plan also provides for State of Iowa to make matching contributions.
Vesting refers to your "ownership" of a benefit from the plan. You are always 100% vested in employee contributions, employer contributions and rollover contributions, plus any earnings they generate.
Accessing your money before retirement
Access to your contributions to the 457(b) plan
Money may be withdrawn from the plan in these events:
- Severance from employment
- Unforeseeable emergency which is defined as a severe financial hardship resulting from a sudden and unexpected illness or accident (involving the participant or a dependent), a loss of property due to casualty, or other similar extraordinary and unforeseeable circumstances due to events beyond your control.
- Attainment of age 70½. (If you reach age 70½ and have not separated from service, you can elect to defer receipt no later than April 1 of the year following separation from service.)
- A one-time withdrawal is allowed if your account balance is $5,000 or less and there have been no deferrals for the past two years and no prior withdrawals of this type have been taken.
Access to employer contributions
Employer contributions may be taken upon separation from service.
Income taxes are payable upon withdrawal and federal restrictions apply to early withdrawals. Be sure to talk with your tax advisor before withdrawing any money from your Plan account.
You must begin taking minimum required distributions the later of attainment of age 70½ or separation from service from the employer sponsoring the plan. Contact your financial advisor for further information about minimum distributions.
An array of investment choices
The following mutual funds are available in your retirement plan. They provide you with the flexibility you need to create a suitably diversified portfolio that matches your personal retirement time horizon, investment risk tolerance and investment preferences.
To view or print a prospectus, access “Prospectuses and Other Important Materials”. The prospectus contains the investment objectives, risks, charges, expenses and other information about the respective investment companies that you should consider carefully before investing. Please read the prospectus carefully before investing or sending money. You can also request a copy by calling 1-800-428-2542.