What is a 457 deferred compensation plan?
A 457 deferred compensation plan is a retirement plan that allows you to make contributions into an account established on your behalf. Your contributions are made on a pre-tax basis, and all earnings are tax-deferred. The amounts accumulated on your behalf may be distributed at retirement, or due to another qualifying event, such as separation from service or death.

How does the SMART Plan work?
The Massachusetts Deferred Compensation SMART Plan is established under Internal Revenue Code Section 457.

• You decide, within IRS legal limits, how much of your income you want to defer.
• Your employer will reduce your paycheck before tax by that amount.
• Contributions are invested in the investment options you have selected.

Who is eligible to participate in the SMART Plan?
The SMART Plan is open to employees of the Commonwealth of Massachusetts and participating governmental entities. There are no age or service requirements to enroll or participate in the SMART Plan.

Does participation in the SMART Plan reduce my State pension/retirement benefits?
No. The Plan is supplementary and does not replace or reduce pension/Social Security benefits.

May I transfer or rollover assets from my other retirement plans into the SMART Plan?
Yes. You may consolidate retirement accounts (401, 403(b) and/or IRA) into the SMART Plan at any time. However, all non-457 assets transferred into the SMART Plan remain subject to the IRS 10% early withdrawal penalty that does not apply to 457 contributions. In addition, SMART Plan assets transferred to another retirement account (401, 403(b), IRA etc.) may become subject to the IRS 10% early withdrawal penalty when distributed from the new plan. Consult with a tax advisor for more information regarding possible tax implications.

May I transfer or rollover my SMART Plan account balance if I separate from service?
Yes. You have two choices when you separate from service:

1. You can transfer your account balance to another eligible 457 program if your new employer accepts this type of transfer. You may also rollover your account balance to a 401, 403(b) or IRA. Keep in mind, that your 457 assets may then become subject to the IRS 10% early withdrawal penalty.
2. You may leave your money in the SMART Plan and continue to take advantage of the low fees, diverse selection of investment options, account management tools and local representatives.

How do I get more information about the SMART Plan?
For more information, call 877-457-1900 to speak with a customer service associate or contact your local representative (option 2).