Automated Outreach to WDC Participants
The Wisconsin Deferred Compensation Program recordkeeper, Empower, introduced a new web experience last year. The website enables you to aggregate your financial accounts in one location, access sophisticated calculators, and much more. Additionally, Empower has begun proactively providing suggested next steps you can consider for managing your WDC account and making better saving and investing decisions. Based on your communication preferences, you will now receive messages in several ways, such as an email, post-login message, or a call.
To ensure the best experience, you may hear from your local Retirement Plan Advisor or from another Empower representative for topics outside of what your advisor can provide. The communications you receive are based on your personal situation (age, time to retirement, etc.) and intended to encourage you to take action toward a more financially secure retirement.
WDC Distribution Options
It’s always a smart move to think ahead about your options for tapping into your WDC account, post-retirement. You are always in control of your funds. Here’s a brief review of WDC distribution options in retirement:
1. Stay in the WDC
You can leave your retirement savings in your WDC account for as long as you’d like — or until you reach age 73. At that point, the Internal Revenue Service says you must begin taking a required minimum distribution, also called an RMD, if you have stopped working. The WDC offers a great feature to help you automatically meet RMD rules at age 73 and avoid the IRS penalty for failing to take your RMD.
2. Take a withdrawal
There are several flexible payout options available. Be aware that there may be tax implications, depending on which one you choose.
- Periodic payments: You can choose the dollar amount and frequency.
- Partial lump sum: Take what you need when you need it.
- Full lump sum: While you have immediate access to all your money, taking it out all at once could come with a hefty price tag, due to potential tax liabilities and/or the lost savings opportunity.
3. Roll over your money
If you are thinking of consolidating accounts, there are several options:
- Transfer your account balance to a different qualified retirement savings plan.
- Roll your WDC account to a WDC Roth account.
- Roll money into your WDC account from another retirement account.
Plan Your Future With a WDC Retirement Plan Advisor
Your local WDC Retirement Plan Advisor is available to meet with you and offer guidance, answer questions, and help you take action to reach your long-term goals.
Set up a meeting to meet with your local RPA today. Schedule an appointment online or call the WDC at 1-877-457-9327.
Mark Your Calendar: “Steppingstones” Webinar
Join us November 15 from 9:00 a.m. to noon for a live Your Steppingstones to Retirement webinar. Get your questions answered by a benefits specialist. This webinar is a repeat of a popular webinar originally presented last spring and will once again be hosted by representatives from ETF, the Social Security Administration, and the WDC Program. Learn how your Social Security, Wisconsin Retirement System pension, and WDC Program savings account bring you closer to a secure financial retirement. Topics covered include:
- Wisconsin Retirement System: eligibility and benefits; Core and Variable Trust Funds; annuity options; beneficiaries; and working in retirement.
- Social Security: eligibility for retirement benefits; how early retirement affects your benefits; qualifying for survivors and spouse benefits; and when to file for Medicare.
- WDC Program: WDC basics including contribution limits; investment options; pre-tax vs. Roth contributions; rollovers; and retirement readiness reviews.
Register now for Your Steppingstones to Retirement.
Unable to join us for the live webinar? Watch a recording of the session from last spring. You’ll find three separate videos.
WDC Investment Change: Fidelity Contrafund
On August 1, Fidelity made changes to the equity pools offered through the Fidelity Management Trust Company. The WDC Program investment lineup includes one of the pools affected by these changes. The WDC Program previously held Class 3 of the Fidelity Contrafund Commingled Pool; effective August 1, Class 3 was renamed to Class O. Fidelity also lowered the management fee for the share class offered through the WDC by two basis points.
| Share Class Name Prior to Aug. 1, 2023 | Price Prior to Aug. 1, 2023 | Share Class Name as of Aug. 1, 2023 | Price as of Aug.1, 2023 |
|---|---|---|---|
| Class 3 | 35 bps | Class O | 33bps |
WDC participants affected by this change will notice it in their next WDC statement.
Your WDC Program Website
The WDC website at wdc457.org is a great resource to help you track your progress toward the retirement you want. The WDC is here to help you gain a more complete view of your financial picture with the goal of helping you replace — for life — the income you made while working.
On the WDC website, you have access to the Learning Center tab, which provides you with the following resources:
- Financial Wellness tools — access ongoing financial education, including videos, interactive tools and calculators and financial wellness articles
- WDC resources — view fliers, brochures to learn more about different financial topics specific to the WDC and access the Wisconsin Retirement System calculator.
- e-Learning seminars — you have the convenience of learning more about creating the right strategy for your needs with self-paced, online learning. There are a variety of courses available to you.
The more you know about different financial topics, the more prepared you’ll be to make thoughtful decisions about your retirement savings.