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Benefits August 9, 2007
Kentucky Adopts Deemed IRA for Public Employees
August 9, 2007 (PLANSPONSOR.com) - Public employees
in Kentucky can keep their individual retirement account
(IRA) assets in a separate account within their 401(k) plan,
as of July 1, 2007.
Reported by Adrien Martin
According to a press release, The Kentucky Public Employees’ Deferred Compensation Authority has made Deemed IRA options – both Roth and Traditional – available to participants effective July 1, 2007.
Participants can choose to contribute to a Deemed IRA through:
- Automatic payroll deductions (providing the employer has elected to make the deductions); or
- By direct payment methods, such as a personal check or money order, for those employees of participating employers who elected not to make the IRA deductions.
“We want our employees to view us as a one-stop-shop for
their supplemental retirement savings needs,” said the
Authority’s Executive Director, Bob Brown, in the press
release. “Deemed IRAs, both Traditional and Roth, are an
exciting addition to our supplemental retirement savings
program and they will complement very well the 457(b),
401(k) and Roth 401(k) options that we currently offer our
participants.”
Terminated or retired participants who have maintained at
least a $5,000 balance in their retirement plan accounts
are allowed to roll over existing IRA accounts from other
providers.