Overview of deferred compensation
- Like a 401(k) plan, deferred compensation is a way to save for retirement.
- Deferred compensation lets you set aside money pre-tax, after-tax or both.
- The county doesn't contribute separate money into your deferred compensation plan.
- You can only withdraw the money if you retire, resign or need the money for a financial hardship.
- Once you retire, you can leave the money in or withdraw it.
Amount you can set aside
You can set aside as much money into deferred compensation as the IRS allows:
- If you are under age 50, the yearly limit is $20,500.
- If you are over age 50, the yearly limit is $27,000.
- Within three years of normal retirement age: each of the three years you can set aside up to $41,000. Contact your vendor for amount.
View a one-minute video on deferred compensation (YouTube).
Enrolling in deferred compensation
1. Choose and contact a vendor to set up an account
Fidelity (Plan No. 93811)
Call 1-800-343-0860 or visit the Fidelity website.
Minnesota Deferred Compensation Plan
VOYA (Plan No. 664372)
Schedule an appointment with an Investment Advisor Representative:
Visit the VOYA website.
2. Review guidelines
You can use more than one vendor. For example you can have after-tax contributions with one and pre-tax contributions with another.
You can change vendors and transfer money from one to another.
Meeting with vendors is on your own time.
Learn more about the process:
3. Use online form to start contribution after account is set up
Complete and submit the online form located on the APEX Benefits tile > Deferred Compensation > Enroll/Change Deferred Comp.
Once you're enrolled in deferred compensation
You can increase, decrease or stop your contributions any time. Complete and submit on-line form located on the APEX Benefits tile > Deferred Compensation > Enroll/Change Deferred Comp.
Rollovers from other employers
To roll money over:
- Set up a deferred compensation account with a county vendor.
- Ask for rollover paperwork from the county vendor.
- Ask for rollover paperwork from your former employer’s vendor.
- Scan and email your paperwork to hr.servicecenter@hennepin.us.
- We’ll sign and return your paperwork to the county vendor.
Note: you can only withdraw rollover money when you retire, resign or need the money for a financial hardship.
Withdrawals from your deferred compensation account
You can only withdraw the money when you retire, resign or need the money for a financial hardship — you must get approval for the hardship withdrawal.
The approval process depends on the vendor.
Fidelity or VOYA
Email HR benefits at hr.servicecenter@hennepin.us to ask for a hardship withdrawal application. We’ll contact you about next steps.
Minnesota Deferred Compensation Plan
Call 651-296-2761.
1% supplemental retirement fund
This plan is for employees hired before April 14, 1982. Call the Minnesota State Retirement System at 651-296-2761.