Distribution Decisions

Keep Your Money Growing - Smart Decision

Whether you are changing jobs, leaving the workplace temporarily, or you have retired and don't need to spend the money right away, giving your account more time to grow is the Smart Decision. By choosing this option you allow the savings that you've worked so hard to accumulate to continue working for you with the power of compounding. These principles apply regardless of the size of your retirement savings account.

Benefits of Keeping Your Money Growing

  • Preservation of your retirement savings.
  • Potential for continued growth.
  • Postpone federal and state income taxes.
  • Avoid penalties on distributions prior to age 59 1/2.
  • Investment control.
  • Future IRA or Roth IRA conversion option.

Additionally, by keeping your money growing in a tax-deferred account the federal and state income tax laws continue to work in your favor. While you were employed, any earnings on the money invested in your CCOERA account were not subject to federal or Colorado state income taxes. This special tax treatment helps your account grow much faster than a traditional after-tax account, creating a greater retirement benefit for you in the future. You will continue to reap the benefits of this tax strategy until the money in your retirement savings account is withdrawn.

Keep Your CCOERA Retirement Account

By electing to keep your CCOERA Retirement Account the money can remain in the investment options you currently hold, or you may change the allocation of your investments any time in the future, at your discretion. You also remain eligible for all of CCOERA's retirement planning services, both personal and electronic.  You may maintain your CCOERA Retirement and/or CCOERA Deferred Compensation account(s) with CCOERA with no special election or paperwork requirement to complete.

Transferring To Another CCOERA-Employer

As an employee of a CCOERA-member local government you are eligible for many unique benefits provided exclusively to CCOERA participants, including the ability to maintain your CCOERA account in the event you accept a position with another member entity. When the break in service between employers is less than 30 days you will be eligible to participate in your new employer's plan immediately (even though they may require new employees to wait up to one year), and you will maintain your current vesting status. This means if you were 80% vested in your previous employer's plan, you will be 80% vested in your new employer's plan from your first day of employment with your new CCOERA-member employer.

To transfer your CCOERA 401(a) Retirement Plan and/or CCOERA 457 Deferred Compensation Plan account(s) to another CCOERA-member employer, you will need to complete your new employer's CCOERA Enrollment form(s), and then let them know you have a CCOERA account through a prior CCOERA employer, so they can forward your Enrollment form(s) directly to CCOERA to transfer your old CCOERA account(s) to your new one(s).