Payments may be taken from the participant's account for the following reasons according to the Multnomah County Deferred Compensation Plan:
- Termination of employment (termination or retirement)
- Financial hardship (see Hardship withdrawal for information)
- Payout of Dormant Accounts
Accounts under $1,000 are paid out to the employee unless the employee transfers the account to another plan within 90 days of termination. If paid to the employee, the amount is taxable in the year it is received but there are no early withdrawal penalties. The participant is required to complete a W-4 form and sign other related paperwork in order to complete the withdrawal. Upon termination, the County will contact participants whose accounts are less than $1,000 to initiate the withdrawal. Participants may also initiate the withdrawal by contacting Multnomah County Deferred Compensation at 503-988-5016.
Participants with accounts over $1,000, who have retired or terminated County employment are advised to contact their provider prior to termination to discuss payout options and to start the necessary paperwork. Changes to payouts are allowed once per calendar quarter except for Installment Payment (Systematic) Options. If that option is selected, it is irrevocable and cannot be changed.
Accounts can be rolled to other eligible retirement plans if they meet certain criteria. Deferred compensation (457) accounts are subject to the provisions and restrictions of the type of account to which they are rolled over. Please make sure you understand all the changes before you rollover to another plan.
Payout of Dormant Accounts
The County's plan allows for payout of deferred compensation accounts to active employees if the account(s) meet two criteria:
- The account balance must be less than $5,000, and
- There must have been no contributions in the previous two year period.
If your account meets the above criteria and you would like to have it paid to you, contact Multnomah County Deferred Compensation at 503-988-5016.