About The 457/401(a) Plans
You’ve probably heard of the different types of retirement plans: 457(b) Deferred Compensation, 401(k), 403(b), 401(a) and Roth contributions. As an Arizona State Retirement System (ASRS) public employee, there are plans created specifically for you.
As the plan administrator of the ASRS 401(a) Supplemental Retirement Savings Plan and 457(b) Supplemental Salary Deferral Plan, Nationwide has worked with public sector employees for more than 40 years, so we know the kinds of questions you may have about 457(b) and 401(a) Plans. We’ll give you the tools and information to help you feel confident about investing for retirement. Keep in mind that investing involves market risk, including possible loss of principal. As you get started, we’ll help you understand market risk and strategies that may help you deal with it.
There are two plans to allow public employees like you to put aside money from each paycheck toward retirement. These two plans can help bridge the gap between what you have in your pension and Social Security, and how much you’ll need in retirement. Keep in mind that the 401(a) Supplemental Retirement Saving Plan has eligibility restrictions. Therefore, you cannot enroll online nor access forms online. If you are interested in enrollment in this Plan, please call one of our Retirement Specialists today.
To be eligible to participate in the ASRS 401(a) Supplemental Retirement Savings Plan, you must:
- Meet the 20/20 criteria (work a minimum of 20 hours a week for 20 or more weeks in a fiscal year) established by the State, and
- Be at least 40 years of age if participating in a qualified plan administered by the Arizona State Retirement System, or upon age 30 if participating in a qualified plan administered by the Public Safety Personnel Retirement System (PSPRS). When you reach your eligibility age, you have a two-year window within which to make a contribution election.
If you were already 40 years old and in a qualified ASRS plan or 30 years old and in the PSPRS at your date of hire or the inception date of this 401(a) plan, you have two years from the date of employment or date of inception, whichever is later, to elect to participate.
- A tax-deferred way to invest for retirement. Withdrawals are taxed as ordinary income.
- Opportunity to create an individualized portfolio of investment options from a broad spectrum of asset classes.
- A home for rollovers, allowing you to consolidate and manage your retirement and savings plan assets through one low-cost Plan. Assets rolled over from a qualified plan or individual retirement account may be subject to a 10% penalty tax if withdrawn prior to age 59½.
- Access to more than 4,700 mutual funds and 150 exchange-traded funds through the self-directed brokerage services offered by Charles Schwab & Co., Member SIPC.
You’ll have access to a wide range of investment options.
There are different approaches to building your portfolio including:
- Do-it-yourself: You choose and manage your individual funds from the lineup available through your plan. Use the results from your Investor Profile to illustrate an asset allocation model. This model can help you determine what percentage of your assets to put in each asset class. Experienced investors may want to consider the self-directed brokerage option available through the Plan.
- Do-it-for-me: Provides you with a diversified portfolio that is rebalanced automatically to maintain a selected strategy. Asset Allocation Funds are a do-it-for-me option designed to provide diversification across several types of investment and asset classes, primarily by investing in underlying funds. The use of diversification and asset allocation as part of an overall investment strategy does not assure a profit or protect against loss in a declining market.
Because the SRSP 401(a) Supplemental Retirement Savings Plan has eligibility restrictions, and contribution amount changes are not allowed, online enrollment is not available. To enroll, please talk with a Retirement Specialist.
Get the help you need
We'll even walk you through it. If you need more help, call one of our Retirement Specialists at 888-224-1011 or 602-266-2733.