Welcome to My NC Retirement for government employees, employers, and retirees! Here you'll find resources and tools to help you determine what actions to take to address your short-term and long-term financial and retirement planning needs.
Penalty Tax Exemption for Public Safety Employees
The North Carolina Retirement Systems Division wants to make you aware of a recent change to federal law as it relates to public safety employees. On June 29, 2015, President Obama signed into law the “Defending Public Safety Employees’ Retirement Act.” This new law expands the exemption which up until now only apply to pension assets. With this change in the law North Carolina Public Safety workers are exempt from the 10% penalty tax on early distributions from 401(k) plans. This means that public safety employees, as defined by the IRS, are no longer subject to the 10% penalty upon separation of service at or after age 50, effective January 1, 2016.
This legislation primarily affects those employees who are considering retiring prior to Jan. 1, 2016 and have assets in the NC 401(k) Plan. This is important information for participants to consider because the law does not take effect until January 1, 2016. Anyone who retires and withdraws funds before the implementation of the law may still be subject to the penalty. Because of the considerable tax implications regarding the withdrawal of 401(k) funds participants have saved for retirement, the participant should consult a tax advisor. The Department of State Treasurer does not give tax advice.
My, How Things Have Changed!
If you’ve stopped by MyNCRetirement.com, well, then you’re getting a sneak peek at the new look for the N.C Retirement Systems Division. Coming this fall, we will be introducing a new logo and brand for RSD called The North Carolina Total Retirement Plans.
Why are we changing our look? Because we have so much to offer our active members, retirees and benefit recipients...we’re now the total retirement planning package! The North Carolina Total Retirement Plans offer the oversight and protection of the traditional well-managed North Carolina Retirement System with the benefits of access to additional products that will make planning for retirement that much easier.
You may have already seen our new logo in a presentation or online. You’ll be seeing more of this logo as we update our online messaging, in new publications, and electronic communications. It's a symbol for the next decade and beyond!
Internal Revenue Code Section 415(b)
Internal Revenue Code section 415(b) is a federal provision that limits the amount of annual retirement benefits that an individual can receive from a pension plan. Beginning in August 2016, retiring TSERS and LGERS members may be affected by these limits. The NC Retirement Systems has created a fact sheet
to help members understand IRC section 415(b) and make informed decisions about their retirement.
Internal Revenue Service Increases 2015 Contribution Limits
The Intenal Revenue Service has increased the limits taxpayers may make to their 401(k), 403(b), and most 457 plans for the 2015 tax year. Visit our NC Total Retirement Plans Recent News web page
for more information.