What's New?

With 2024 off and running, and the first quarter of the year continuing a trend of positive gains and ending in positive territory, most Nevadans are excited to bring in the Spring and Summer months after a snowier than normal Winter. With that, the Nevada Public Employees’ Deferred Compensation Program (NDC) continues working hard to bring the most value to participants and assisting them with their financial wellness journey to and through retirement.

State employees gearing up for another sizable COLA increase in July 2024. How will you spend it?

State of Nevada employees are expecting another sizable 11% cost of living adjustment (COLA) in July. We encourage all employees to consider what they can do to best utilize their additional income to pay for the needs of now while preparing for the future as well. We always recommend that employees consider using at least 50% of their increase per paycheck towards creating additional retirement savings in the NDC Program. Feel free to reach out to us at the NDC Administrative Office to assist you with maximizing your COLA while offsetting the future tax liabilities of a higher salary. For now, though, ask yourself this — would you rather give your COLA to the IRS or put it into a savings account for yourself. Sounds like an easy decision, right?

The annual customized Retirement Evaluation for NDC participants returns this summer

For each of the last three summers, NDC participants have received personalized retirement evaluations by mail or email through our relationship with Voya Retirement Advisors and Edelman Financial Engines. The campaign has been successful for participants because it shows your progress towards retirement while providing insights into ways you can improve your financial literacy and overall financial wellness. Actively participating participants with a NDC balance of at least a $5,000 will be sent an evaluation this summer.

To prepare for this year’s evaluation, you are encouraged to log into their NDC account and go to the About Me section of myOrangeMoney to review and update your salary, anticipated PERS pension, and any other financial data that you would like to be considered when evaluating your retirement readiness. The more information about outside accounts you provide, the more detailed and beneficial the retirement evaluation can be. If you need assistance inputting information into myOrangeMoney, feel free to contact the NDC Plan Information Line at 855-GO-RET-NV (467-3868).

NDC Administration continues to stress that all participants must utilize defcomp.nv.gov, the NDC’s proprietary website, or nevada.beready2retire.com when logging into their NDC account online. From defcomp.nv.gov click the green LOGIN TO VOYA button to get started. Do not attempt to access your NDC account using any other method or web link. If you need assistance with accessing your account online, please call the NDC Plan Information Line at 855-GO-RET-NV (467-3868) or the NDC Administrative Office at 775-684-3398.

On-demand appointments are available at the new NDC Administrative Office location to meet with representatives from the NDC’s contracted recordkeeper, Voya Financial

All employees, including retirees and anyone who has not enrolled in the NDC Program, can schedule a one-on-one appointment with a member of the NDC Administrative Staff or one of Voya’s three representatives. Our new office location within the Nevada State Library and Archives Building is Suite 210 at 100 N. Stewart Street. For our Southern Nevada employees, Eric Wyer from Voya is able to meet with employees at various locations within the new McCarran Center campus. You can also meet with Voya virtually by visiting nvdeferredcomp.timetap.com to schedule an appointment.

In closing, we wish you and your family a safe and enjoyable Spring season.

Developing healthy money habits

Think about what you enjoy doing now. Then think about how you’d like to enjoy life in retirement. Each scenario you envisioned probably requires money. So how do you live for today while planning for tomorrow? You will need to create a plan that helps you do the things that bring you joy today while feeling confident that you’re also on track for the financial future of your dreams.

To help you develop the money habits that will help make saving easier and reduce financial stress, consider the following:

1. Saving automatically

The best part about saving automatically is that you don’t have to think about it. You can set up to have portions of your paycheck sent to different accounts or automate savings from your checking account. Either way, the “set it and forget it” method can help you save and save consistently. Take action: Consider creating a separate account for each personal savings goal while you continue saving for retirement to your NDC account.

2. Saving for the unexpected

Life is full of surprises. Don’t let an unexpected expense make you go into debt, take a loan or borrow against retirement savings. An emergency savings account can help you avoid that. Building up an emergency savings account won’t happen overnight, but small amounts will add up over time. Take action: Think about what an unexpected expense (car troubles, home repairs, medical bills, etc.) might cost you, then work towards having enough saved to cover that expense.

3. Saving for major milestones

If saving for even small things can be challenging, how do you save for the bigger moments in life? Like building an emergency savings fund, saving for major milestones can happen in small steps. Develop a budget that tracks your monthly spending to find more money to save. Take action: Break each goal down into smaller, realistic actions. For example, saving just $10 a week towards a goal would give you more than $500 in only a year.

4. Paying down debt is saving

As important as it is to have a savings plan, it’s just as important to have a plan to pay down debt. When you pay down debt, you save on debt payments and interest. What you used to spend on debt can then be redirected to savings. Take action: Make a list of your debts and their monthly interest to know what you owe, then consider a plan to pay down your highest interest debt first.

5. Saving at any age

Don’t keep your savings goals a secret. Share your plans with your family, especially your kids, and embrace learning to help improve your financial literacy. This can help teach them how to have a healthy relationship with money. Take action: Consider opening an account for kids to save part of their allowance, which will help them learn by doing.

Need more help? The NDC’s contracted recordkeeper, Voya Financial^®, offers a resource center for you to learn about how to better manage and master your money for life. Visit voyaasw.com today.

Pre-tax vs. Roth after-tax contributions: Which one is right for you?

To help you reach your retirement goals, the NDC Program offers the opportunity to save on a pre-tax basis, a Roth after-tax basis, or a combination of both. It’s important that you understand how each option works to save based on your personal situation. So which option is right for you? The answer for you may depend on whether you think your federal income tax rate will be higher or lower at retirement.

How are these two types of contributions similar?

No matter which contribution option you use to save for retirement, it doesn’t change how much you can contribute for the year or where you can invest it within the Plan. Both contributions sources and any earnings also grow tax-deferred in your account.

How are they different?

The difference between the saving options is when the contributions and retirement income will be subject to federal income tax. Saving for retirement on a pre-tax basis means your contributions are made before they are taxed, so you save on taxes today. With Roth after-tax saving, your contributions to the Plan are taxed today but qualified distributions are federal tax-free. That could mean more monthly income for you in retirement.¹

Why might your decision depend on your current and future tax bracket?

Taxes play a big role in the decision-making process because pre-tax and Roth after-tax contributions will impact your paycheck differently today and your income in retirement. The Roth option builds your retirement savings with after-tax dollars, so your current take-home pay is less than if you contribute the same amount on a pre-tax basis. The Roth option offers qualified federal tax‑free withdrawals at retirement, though, which means that you may end up with a higher account balance at retirement.

While it’s difficult to predict what your future tax situation will be, visit voya.com/tool/roth-vs-traditional-retirement-account-calculator for education² to assist you in determining whether the pre-tax or Roth after-tax option may be best for you based on your personal financial situation. You may also want to consult with your tax advisor or financial professional to discuss your unique situation before making changes to your income tax or retirement saving strategy. No matter how you save for retirement, though, what’s most important is that you save now and save consistently to help secure your financial future.

This information is provided by Voya for your education only. Neither Voya nor its representatives offer tax or legal advice. Please consult your tax or legal advisor before making a tax-related investment/insurance decision.

1 Refers to federal taxes and assumes any distribution is a qualified distribution. Distributions from a Roth 457 plan are tax-free, as long as you’ve satisfied the five-year holding period; and are age 591/2 or older (assuming you have separated from service), disabled or deceased. Refer to your state's tax rules and local tax rules to determine if additional taxes apply.

2 The analysis provided by this tool is based solely on the information provided by you. All examples, if any, are hypothetical and for illustrative purposes and do not represent current or future performance of any specific investment. No guarantees are made as to the accuracy of any illustration or calculation. This information does not serve, either directly or indirectly, as legal, financial or tax advice and you should always consult a qualified professional legal, financial and/or tax professional when making decisions relative to your individual tax situation. All investments carry a degree of risk, and past performance is not a guarantee of future results. Generally speaking, the greater the return, the greater the risk.

How do you decide when to retire?

The retirement journey does not always go as planned. Sometimes, you pick when to retire and go out on your own terms. Other times, you may opt to retire instead of searching for a new job after a change in your employment status. No matter when or how you retire, leaving the work force can be difficult when you consider these financial realities.

Your accumulation phase has ended. When you stop working, you switch from building up savings to creating income with what you saved for retirement. In some ways, developing and managing your income strategy becomes your new “job” in retirement.

Your retirement may last longer than you think. Our life expectancy rates have gone up. That means the earlier you retire or the longer you live, the more years you will be dependent on your savings.

Your monthly income sources may depend on your age. Your Social Security and/or pension benefits may be impacted by when you start taking them. How much you estimate to receive each month from your income sources may determine how many more years you need to work for and when you can plan to retire.

Your health care costs will likely rise. Medicare doesn’t start until age 65. If you retire before then and you don’t have retiree health benefits from your employer, you may have to pay for your own individual policy. And while you can expect some expenses in retirement to go down compared to when you were working, you should also expect your medical costs to increase in retirement.

There can be benefits to staying in the work force. You can put more money into savings, you have fewer years in retirement to create income for, and you have more time to plan and prepare for the retirement stage of your life. Sometimes, though, it just comes down to a gut feeling. When you’re ready, you’re ready. Schedule an appointment to meet with one of the local Voya^® representatives for the NDC Program to review and discuss your plans so you can be ready no matter when retirement happens for you.

Making informed decisions about your assets in retirement

Now that you’ve retired, you may have noticed that there are a number of options for you when considering what to do with your accumulated savings. You can leave things the way they are and take income as needed from your different savings sources. You can also explore new accounts that may promise higher rates or better performance than you’re experiencing now. When comparing your savings options, remember to ask the important questions before making financial-related decisions.

The Nevada Deferred Compensation Program prides itself on being a low-cost option for participants with an investment lineup that is regularly monitored to help ensure that we can provide a best-in-class retirement savings vehicle for those who dedicated their career to public service. As you continue managing your finances in retirement, you could be presented with investment opportunities by financial professionals who may not have your best interests in mind. When considering those offers, ask these important questions to see how the NDC Program stacks up.

While rolling out of the NDC Program is always an option for you, so is rolling in outside accounts. Qualified plans you can roll into your NDC account include IRAs, 403(b) plans, 401(k) plans, and other 457(b) accounts. For more information about your roll-in options or to discuss how the NDC Program compares to your other savings options, please call the NDC Administrative Office at 775-684-3398. We’re here to help!

Taking into account your personal situation, you may want to consider your options, such as: keeping your assets where they are; withdrawing your ssets (taxes are generally due upon withdrawal and any applicable tax penalties that may apply): or your may choose to rollover your assets to a employer-sponsored retirement plan that accepts rollovers, or to another eligible vehicle.

Please carefully consider the benefits of existing and potentially new retirement accounts and any differences in features. Please note that assets rolled over from other non-457 plans (such as 401(a)/401(k), 403(b), a traditional IRA) may remain subject to the IRS 10% premature distribution penalty tax.

Advisory Services provided by Voya Retirement Advisors, LLC (VRA). VRA is a member of the Voya Financial (Voya) family of companies. For more information, please read the Voya Retirement Advisors Disclosure Statement, Advisory Services Agreement and your plan’s Fact Sheet. These documents may be viewed online by accessing the advisory services link(s) through your plan’s website at [org_provider_url]. You may also request these from a VRA Investment Advisor Representative by calling your plan’s information line at [org_callcenter_phonenumber]. Financial Engines Advisors L.L.C. (FEA) acts as a sub advisor for Voya Reeditstirement Advisors, LLC. Financial Engines Advisors L.L.C. (FEA) is a federally registered investment advisor. Neither VRA nor FEA provides tax or legal advice. If you need tax advice, consult your accountanted or if you need legal advice consult your lawyer. Future results are not guaranteed by VRA, FEA or any other party and past performance is no guarantee of future results. Edelman Financial Engines® is a registered trademark of Edelman Financial Engines, LLC. All other marks are the exclusive property of their respective owners. FEA and Edelman Financial Engines, LLC are not members of the Voya family of companies. ©2024 Edelman Financial Engines, LLC. Used with permission.

This material is provided for general and educational purposes only; it is not intended to provide legal, tax or investment advice. All investments are subject to risk. Please consult an independent legal or financial advisor for specific advice about your individual situation.

THE DEFERRED WORD   |  First Quarter 2024

Nevada Public Employees’ Deferred Compensation Program (NDC)
Nevada State Library and Archives Building, 100 N. Stewart Street, Suite 100, Carson City, NV 89701

Phone 775-684-3397    |    Fax 775-684-3399    |    defcomp.nv.gov

Plan administrative services are provided by Voya Institutional Plan Services, LLC (VIPS). VIPS is a member of the Voya^® family of companies and is not affiliated with the State of Nevada Public Employees’ Deferred Compensation Program.

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