FCPS Voluntary Retirement Savings Plan

Frederick County Public Schools offers two supplemental retirement savings plans for employees to choose from including the Commonwealth of Virginia 457 Plan and VOYA 403(b) Plan

Both plans allow you to save additional dollars for retirement on a pre-tax and after-tax basis through convenient payroll deductions. Each plan has multiple investment funds available for selection, and each plan has different contact representatives and fee structures.

Special note: Hybrid retirement employees already have a 457 account and can add more savings dollars through the 457 supplemental program.

Contribution Limit

The 2015 calendar year contribution limit for all plans is $18,000.

Understanding Pre- and After-tax Contribution

You may make contributions on a pre-tax basis, and after-tax (Roth) basis or a combination of both, depending on what works best for your retirement planning journey.

Contribution Type Pre-tax Roth (After-tax)
You pay taxes... When you withdraw your money (usually, when you retire) Now, so you don’t have to pay them later
Benefits include...
  • Not having to pay taxes now
  • Contributions you make lower your taxable income now
  • Not having to worry about paying taxes later/when you retire (as long as you meet withdrawal requirements)
  • Paying taxes on contribution now, while you may be in a lower tax bracket than when you retire
You may withdraw your assets (contributions plus associated earnings) if any of the following are true...
  • You terminate employment from the employer that offers the plan
  • You use your plan account to purchase VRS service credit, if approved
  • You quality for an unforeseeable emergency withdrawal
  • You have a low balance and inactive account (subject to IRS De Minimis withdrawal guidelines and plan requirements
  • You reach age 70 ½, even if still employed
The annual limit to how much you may contribute is... Basic limit: If you’re under age 50 in 2015, you may contribute up to $18,000 per year

Age 50 Catch-up: If you’re age 50 or older in 2015, you also can benefit from a “catch-up” contribution limit and contribute an additional $6,000 (total of $24,000 per year)

Standard Catch-up: If you’re within three years of normal retirement age, you may contribute whichever of these is less: twice the annual limit ($36,000 in 2015) or the annual limit, plus the amount of the limit that you did not contribute in prior years (this is only allowed if you are not making age 50 or over catch-up contributions

The contribution limits listed to the left apply to the combination of pre-tax and Roth contributions.