Elect the Auto Increase feature for your Wisconsin Deferred Compensation Program account
One easy way to keep your financial strategy on track is to elect the auto-increase feature for your WDC Program account. This option allows you to save more automatically and gives you the flexibility to set up a savings increase schedule based on your individual goals and specific financial situation.
Take advantage of this automated feature and other resources available on the WDC website. Log in to your account at wdc457.org, go to the navigation bar and select Account > My Contributions and then select “Add Auto Increase”. Automatically increase by a specific dollar or percentage amount every year until you reach the limit you request, or the 2023 contribution limit of $22,500. This option allows you to save more automatically and gives you the flexibility to set up a savings increase schedule based on your individual goals and specific financial situation. For questions about this feature, contact the WDC at 1-877-457-9327 or send an email to the WDC.
WDC participants nearing retirement: Find out if you're on track to meet your retirement financial goals!
Schedule a free review meeting with your local Retirement Plan Advisor today. Discussion topics are specific to your plans and goals, including savings rate and asset allocation, planned retirement age and income needs, and much more. Appointments can be in-person or virtual. Schedule an appointment now.
How the SECURE 2.0 Act affects your WDC Program account
The SECURE 2.0 Act was recently signed into law and some of its provisions will affect how you save for your retirement through the WDC. Most of the changes don't go into effect until January 1, 2024, or later, but several changes to Required Minimum Distributions are effective immediately:
- RMD Age Raised: Although you may keep your money in your WDC account after you retire or separate from state service, the IRS requires that you take RMD payments if you're no longer working. The RMD age was raised from 70½ to 72 a few years ago, and SECURE 2.0 raises this again to age 73 (for anyone turning age 72 on or after January 1, 2023).
- Missed RMD Penalty Reduced: The penalty (excise) tax for failing to take an RMD payment when you should have is reduced from 50% of the missed payment to 25%.
Beginning in 2024 or later, you will see additional changes that will affect your WDC account:
- Catch-up contributions will need to be made as Roth contributions (after taxes are paid on your income) unless you make less than $145,000 per year.
- Beginning in 2025, if you are between the ages of 60 through 63 your catch-up can be $10,000, and this will be indexed to rise with inflation.
- RMD payments will not be required for Roth accounts.
There are also several optional provisions that may be added to the WDC in the future; we are working to incorporate these as appropriate so we can continue to help you prepare for your retirement. If you have questions about RMD payments or any other SECURE 2.0 Act provisions, meet with your local Retirement Plan Advisor or call the WDC at 1-877-457-9327.
Security Guarantee
A retirement account is one of the biggest financial assets for many people. One can spend decades saving and investing to create the retirement income needed for a bright future. Unfortunately, though, the assets in a retirement account are attractive targets for cybercriminals.
The good news is that when it comes to safeguarding your WDC Program account, you are not alone. The Empower Security Guarantee, provided by Empower — the WDC’s recordkeeper — will restore losses to your account that occur as a result of unauthorized transactions through no fault of your own. Any account you have with Empower is automatically eligible for this protection. Account security is a shared responsibility. For the guarantee to apply, follow the practices summarized below to protect yourself and your email, computer and other devices:
- Register your WDC account, then keep your contact information current.
- Protect your personal and financial data.
- Review your accounts and respond to security alerts.
- Increase login protection and keep device updates current.
- Look out for suspicious emails, texts and phone calls.
- Check back periodically with Empower for updated information, as Empower proactively monitors evolving cybersecurity threats.
For more additional information on these practices and details about the Empower Security Guarantee, visit the Empower Security Center.
To log on to your account, visit the WDC website. To speak with a customer service representative, call 1-877-457-9327 Monday-Friday between 7 a.m. and 9 p.m., and Saturdays between 8 a.m. and 4:30 p.m., CST.