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457(b) Deferred Compensation Plan


The Housing Agency Retirement Trust 457(b) Deferred Compensation Plan

This Plan is designed to supplement your current plan, and allows you to make voluntary contributions on a pre-tax basis. Allowing you to take full advantage of the power of tax-deferred savings can help you maximize your ability to save for retirement. The 457(b) plan is completely voluntary and does not require employer contributions.

Top Ten Questions on 457(b) Plans

  1. How does the 457(b) plan work?
    Employees may make contributions through salary reductions or as Roth contributions up to the Internal Revenue Code (IRC) limits.

  2. How does my Agency join the plan?
    To join the Plan, the participating Agency simply executes a Resolution by your Board of Commissioners/Directors. HART will assist each participating Agency, and its counsel, with meeting the applicable regulatory requirements.

  3. What is the cost to add the 457(b) plan?
    There is no cost to the Agency to join the Plan, nor is there any monthly fee to the Agency or participating Employees. Effective with the 1st quarter of 2016, Plan Administration Fees are $15 per quarter ($60 annually) charged to the participant's account.

  4. What are the advantages of participating in a 457(b) plan?
    There are significant tax advantages for participants in a 457(b) plan:

    • Contributions to a 457(b) plan are either tax-deferred or Roth contributions. Your choice.
    • Earnings on the retirement money are tax-deferred.
    • Participants do not pay taxes on the pre-tax contributions or earnings until they take a distribution from the Plan.
    • Contributions made as Roth contributions and earnings will not be taxed at all if they are held for the required time frame.

  5. Who is eligible for the plan?

    • All Employees are eligible to participate in the Plan.
    • There are no age or service requirements.
    • There are no Employer contributions.

  6. Is it mandatory that Employees participate?
    No. Employee participation is optional. Employees may join or opt out of the plan at any time.

  7. What are the minimum and maximum contributions Employees can make?

    • A participant must agree to contribute a minimum of $10 per pay period. These contributions can either be by payroll deduction or on an after-tax basis as Roth contributions.
    • A participant may at any time revoke his or her agreement to defer compensation.
    • Pre-tax and Roth contributions are limited to the amount allowed under the tax laws for any calendar year.
    • The maximum amount which may be deferred or contributed as Roth contributions is set by law and increases with inflation. For 2018, this amount is $18,500. If you are near retirement, this amount may be higher for you. These amounts are subject to change by the IRS each year.

  8. What is the vesting period for the contributions?
    Participants are immediately fully – 100% – vested in all contributions made to the Plan.

  9. When are you allowed to take a distribution from the plan?
    Distributions are allowed in the event of the following:

    • Termination of employment
    • Retirement
    • Death
    • Unforeseeable Emergency* – Hardship withdrawals are available subject to the following rules:

    * Unforeseeable Emergency shall mean a severe financial hardship of the Participant or Beneficiary resulting from an illness or accident of the Participant or Beneficiary, the Participant's or Beneficiary's spouse, or the Participant's or Beneficiary's dependent (as defined in Code Section 152(a)); loss of the Participant's or Beneficiary's property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by homeowner's insurance, e.g., as a result of a natural disaster); or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant or the Beneficiary. For example, the imminent foreclosure of or eviction from the Participant's or Beneficiary's primary residence may constitute an unforeseeable emergency. In addition, the need to pay for medical expenses, including non-refundable deductibles, as well as for the cost of prescription drug medication, may constitute an unforeseeable emergency. Finally, the need to pay for the funeral expenses of a spouse or a dependent (as defined in Code Section 152(a)) may also constitute an unforeseeable emergency. Except as otherwise specifically provided above, the purchase of a home and the payment of college tuition are not unforeseeable emergencies. A distribution on account of unforeseeable emergency may not be made to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the Participant's assets, to the extent the liquidation of such assets would not itself cause severe financial hardship, or by cessation of deferrals under the Plan.

  10. What funds are available for investments?
    Participants are able to choose and allocate contributions into a variety of investment options. Since everyone's investment strategy is unique, HART offers fund diversification. The current investment funds available are:

Click on the symbol in the left column to review fund details
Symbol Fund Name
VMFXX Vanguard Federal Money Market Fund Investor Shares
VBTIX Vanguard Total Bond Market Index Fund Institutional Shares
DODIX Dodge & Cox Income Fund
VAIPX Vanguard Inflation-Protected Securities Fund Admiral Shares
PHYQX Prudential High-Yield Fund Class Q
VTINX Vanguard Target Retirement Income Fund Investor Shares
VTXVX Vanguard Target Retirement 2015 Fund Investor Shares
VTWNX Vanguard Target Retirement 2020 Fund Investor Shares
VTTVX Vanguard Target Retirement 2025 Fund Investor Shares
VTHRX Vanguard Target Retirement 2030 Fund Investor Shares
VTTHX Vanguard Target Retirement 2035 Fund Investor Shares
VFORX Vanguard Target Retirement 2040 Fund Investor Shares
VTIVX Vanguard Target Retirement 2045 Fund Investor Shares
VFIFX Vanguard Target Retirement 2050 Fund Investor Shares
VFFVX Vanguard Target Retirement 2055 Fund Investor Shares
VTTSX Vanguard Target Retirement 2060 Fund Investor Shares
PAAIX PIMCO All Asset Fund Institutional Class
VFIAX Vanguard 500 Index Fund Admiral Class
JDEUX JPMorgan Disciplined Equity Fund Class R6
VIMAX Vanguard Mid-Cap Index Fund Admiral Shares
HMDYX The Hartford MidCap Fund Class Y
VSMAX Vanguard Small-Cap Index Fund Admiral Shares
TRSSX T. Rowe Price Institutional Small-Cap Stock Fund
VTIAX Vanguard Total International Stock Index Fund Admiral Shares
RERGX American Funds EuroPacific Growth Fund Class R-6
DFEMX DFA Emerging Markets Portfolio Institutional Class
AREDX American Century Investments Real Estate Fund R6 Class


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