Is OBRA a good idea?

Is OBRA a good idea?

Is OBRA a good idea? The Omnibus Budget Reconciliation Act (OBRA), also known as the Nursing Home Reform Act of 1987, has dramatically improved the quality of care in the nursing home over the last twenty years by setting forth federal standards of how care should be provided to residents.

What is an OBRA plan?

As an alternative to Social Security, the FICA Alternative Plan provides an individual investment plan for part-time, temporary and seasonal employees.

How do I withdraw money from Obra?

The money can be withdrawn or rolled over into other retirement savings accounts (401(k)s, 403(b)s, other 457 plans, IRAs, etc.) at the end of employment. Besides death and an end to an employment term, OBRA (and 457 plans generally) have more distribution triggers than most other retirement accounts.

What is a bencor account?

BENCOR’s Special Pay Plan is an employer-sponsored retirement plan for full-time employees. With a participating employer, an account is automatically established in your name and upon retirement, your funds can be used as you choose.

How do I withdraw money from mass smart plan?

Contact the SMART Plan Customer Service Center at (877) 457-1900 to request paperwork. A customer service associate can answer questions you may have regarding your eligibility for a withdrawal. 1 Representatives of GWFS Equities, Inc.

What is a smart retirement plan?

The Massachusetts Deferred Compensation 457 SMART Plan is a retirement savings program available for Commonwealth of Massachusetts state and municipal employees. Eligible employees can save and invest before-tax and after-tax dollars through salary deferrals into our wide array of low fee investments options.

Can I withdraw from my smart plan?

You can withdraw less than 100% of your SMART Plan balance as a partial lump-sum payment after severance of employment and then also elect a periodic payment option for the remaining balance. This option allows you to keep your remaining balance in the investment options available under the SMART Plan.

What is a 457 plan and how does it work?

457 plans are IRS-sanctioned, tax-advantaged employee retirement plans. They are offered by state, local government, and some nonprofit employers. Participants are allowed to contribute up to 100% of their salary, provided it does not exceed the applicable dollar limit for the year.

What is the advantage of a 457 plan?

Contributions to a 457 are taken from your gross income, reducing your taxable wages. Your money then grows tax-deferred until you withdraw it, at which point it will be taxed as income. And because, like a 401(k), the deductions are automatic, a 457 offers one of the more painless ways to save for retirement.

Can you contribute to an IRA if you have a 457 plan?

Employees who contribute to a 457(b) can contribute to an IRA if his earned income is at least equal to the IRA contribution. Participating in a 457 plan, however, may limit IRA deductions or contributions in some cases.

At what age can you withdraw from a 457 plan?

59½

Can I contribute to a 401k and 457 in the same year?

Contributing to both a 401(k) and a 457(b) retirement plan allows you to double your tax-deferred savings and reduce your taxable income, and the IRS says that’s perfectly OK. Having both types of accounts can be helpful if you need to withdraw money, because there are no early-withdrawal penalties on a 457(b).

What is the difference between a hardship withdrawal and an in service withdrawal?

In accounts that permit in-service withdrawals, there are allowable circumstances. The need for the in-service withdrawal must be immediate and it must be a heavy financial burden. The in-service withdrawal must be limited to the amount of the need. This is called a hardship in-service withdrawal.