Considerations for Your WRS Deferred Compensation 457 Plan Account

Retirement is now of just around the corner; as you start a new chapter consider keeping your money with the WRS Deferred Compensation 457 Plan to receive the same great benefits as you did when you were contributing. Keeping all or part of your money in the Plan might make better sense for you -- perhaps more than you ever realized.

WRS is able to keep fund costs below average because of its status as an institutional investor. In addition to low fund costs, which you pay, you also pay the annual cost of administrative fees, which is 0.27% of assets, or 27 cents for every $100.00 dollars you have invested in the Plan.  The administrative cost will never exceed $491.40 per year. Be sure to evaluate all plan features, plan fees and investment options before deciding to roll your account to another provider.  Compare the services, education, trade restrictions and payout options for each company, using the four key questions below and the comparison chart you can download in the menu to the right.

Key Questions WRS 457 Plan  Other Plans 
     
How old are you?
 
 Once you’re no longer a WRS employee, you won’t face a tax penalty if you take a withdrawal on before-tax balances (even if you’re not yet 59½).  You may face an additional 10% tax on a withdrawal from a 403(b), 401(k) or IRA before you turn 59½.
How good are the investments in the plan?  Each custom fund was carefully constructed to consider all  returns, risks and fees. WRS  uses institutional investments,  which are usually lower in cost  and not available in the retail investment sector.  Many plans offer only funds affiliated with their company.
Is the Capital Preservation - Stable Value Fund right for you?   Yes, if you prefer low risk and a stable return rate.  Stable Value Funds are only available in employer retirement plans.
How does consolidating your assets relate to diversification?  You may face less risk because  WRS uses an assortment of managers inside our mix-your-own custom funds.   Moving your entire retirement  nest egg to one mutual fund company may result in less variety and expose you to the risks associated with that company.
 

 

Compare Fees — Don’t Make a Decision Until You Compare

If you’re thinking about moving your account to an eligible plan with a broker or advisory company, be sure to compare fees. Fees can include fund management fees, administration fees, recordkeeping fees, trades fees and sales charges.  You are encouraged to discuss rolling money from one account to another with your financial advisor/planner and to consider any potential fees and/or limitations of investment options.  It’s important to make the choice that is best for you.  Consider all your options. After all, it is your money.  To help you compare your Plans, download the worksheet in the menu to the right.

 

You Have a Wide Array of Investment Options

Pre-mixed funds:

The LifePath target date portfolios invest with a particular withdrawal  date in mind, diversify your savings across multiple asset classes and automatically adjust to a more conservative risk level as you near retirement — all with one fund.

Mix-your-own funds:

These funds are custom fund-of-funds developed by WRS to help participants achieve their retirement goals. Each was carefully constructed to consider  expected returns, risk and fees with minimal overlap of specific investments.  You also have available the WRS Capital Preservation - Stable Value Fund, (which is only available 
in employer retirement plans) that offers capital preservation as well as the potential for  higher returns.

Self-directed brokerage account (SDBA):

The SDBA (through TD Ameritrade) allows you to select from various mutual funds if you accept the risks associated with its investments. Securities are offered through TD Ameritrade; additional fees apply. on as well as the potential for  higher returns.


Through the WRS 457 Plan, you can enjoy:

  • Fiduciary oversight of the Wyoming Retirement System Board.
  • Access to dedicated certified retirement counselors.
  • Spend-Down and Investment Advice is offered by Empower Retirement Advisory Services, provided by Advised Assets Group, LLC, a registered investment adviser. There is no guarantee that participation in any of the advisory services will result in a profit or that the account will outperform a self-managed portfolio invested without assistance.
  • Online resources to help you manage your account.
  • Flexible payout options.
  • Easy, 24/7 account access via www.wrsdcp.com and (800) 701-8255.