CCOERA Distribution Decisions

As a member of CCOERA you may have money in your account(s) contributed from several different sources. These sources might include employer contributions, employee contributions, deferred compensation etc. The rules regarding taxation of the money in your account(s) can vary depending on the source. Listed below are all of the potential sources of contributions, to help you or your tax advisor determine an appropriate distribution of these funds.

Employer Contributions to the CCOERA Retirement Plan (TAXABLE)

These contributions have been made by your employer, on a tax-deferred basis, meaning that you will be responsible for income taxes on this money when you receive it, because you did not have to pay taxes on the contributions when they were invested in your account. Early withdrawals may also be subject to a 10% penalty tax.

Employee "Pick-up" Contributions to the CCOERA Retirement Plan (TAXABLE)

These are mandatory contributions deducted from the employee's paycheck before taxes. These contributions are tax-deferred because they were "picked-up" by your employer, and you will pay taxes on this money when you receive it. Early withdrawals may also be subject to a 10% penalty tax.

Deferred Compensation Contributions (TAXABLE)

These contributions are generally made on a voluntary basis. They are always tax-deferred and you will be responsible for income taxes when you receive a distribution, however, there are no penalties for early withdrawal.

Employee "non Pick-up" Contributions to the CCOERA Retirement Plan (AFTER-TAX CONTRIBUTIONS)

These are also mandatory contributions deducted from the employee's paycheck, EXCEPT, they were contributed after taxes. Therefore, you will not have pay taxes on the distribution of these contributions, because you paid the tax before it was deducted from your paycheck.

Employee Voluntary Contributions to the CCOERA Retirement Plan (AFTER-TAX CONTRIBUTIONS)

These are voluntary contributions deducted from the employee's paycheck on an after-tax basis. If you made voluntary contributions to the CCOERA Retirement Plan, you have already paid the taxes on these contributions.