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Frequently Asked Questions

Frequently Asked Questions

If you are unable to find an answer to your question, please contact The Deferred Compensation Plan Administrator at 206-263-9250 or kcdeferredcomp@kingcounty.gov.

What is deferred compensation?

It is a voluntary, non-qualified deferred compensation program under IRC 457 designed for employees to save for retirement on a tax-favored (tax-deferred) basis.

Is there a Roth option?

Yes. Roth contribution are made after-taxes are taken out of your pay.

Who is eligible to participate?

Any employee who receives health benefits from King County.

How does it work?

Deferred compensation works by payroll deduction only. Enrollment and salary deferral changes submitted are processed on a bi-weekly schedule. It may take 1-2 pay cycles for the deduction to start. Visit T. Rowe Price for more information.

What are the maximum and the minimum deferral amounts?

For 2024, participants under 50 years old can contribute up to the IRS salary deferral limit of $23,000 per year. If you are age 50 or over any time in 2024, your maximum is $30,500. The minimum amount is $30 or 1% per pay period.

How and when can I make changes to my contribution amount?

You can make changes any time by calling T. Rowe Price at 1-888-457-5770 .

Since I did not know about the program before, may I elect to do a special catch-up?

Yes, you can make up a limited amount of under or non-utilized deferrals for the time when you were eligible to participate whether or not you were enrolled. You may do a limited catch-up over 1, 2, or 3 taxable years before you are eligible to draw an unreduced retirement pension.

How is my money invested?

You choose among the investment options offered through the plan. There also is a self-directed brokerage account option for knowledgeable investors or those who have knowledgeable advisors.

How do I know what I have invested and how well it is doing?

You will receive a quarterly statement from the Plan recordkeeper. You also can call them at 1-888-457-5770, or check on-line at rps.troweprice.com.

What are the fees?

The recordkeeping and administrative fee is $16.50 per quarter. Investment management fees vary by the investment fund and are detailed in the prospectus for each fund. Fees are reviewed on an annual basis and are subject to change. If you have further questions regarding fees please contact the Plan Administrator at 206-263-9250.

When can I get my money? Can I roll my money over? Is there a penalty for early withdrawal?

Your funds are available to you upon separation from employment, or you can leave them in the plan to earn tax-free until a later date. Payouts are taxed as ordinary income, unless they are rolled over to another eligible retirement plan, either an IRA or a new employer's plan. You must first check with the new employer's plan to see if it will accept your rollover. If you rollover from King County's plan to a plan that is not a governmental 457 plan, that amount will be subject to the 10% early withdrawal penalty when withdrawn from the new plan. All distributions are subject to the 20% tax withholding rules if not directly rolled over.

May I "rollover" my funds from other retirement plans into King County's plan?

Yes. You are permitted to roll over most traditional individual retirement account (IRA) balances into your King County Employees Deferred Compensation Plan. In addition, you can roll over your vested account balance from an earlier defined contribution employer plan (regardless whether it was a governmental 457, 401(k), or a 403 (b) plan) into your King County Employees Deferred Compensation Plan. Early withdrawal penalties will continue to apply to funds that are not rolled over from governmental 457 plans.

Can I get the money if I have an emergency?

In rare cases, if the Board approves your request for an emergency withdrawal, you can withdraw some or all funds. The rules for hardship are very strict and cannot be for anything that could be covered by loans, insurance, sale of assets, or stopping deferrals. Hardships must be unbudgetable, unforeseeable events beyond your control. You are also able to withdraw funds for the purchase of a primary residence. Please contact T. Rowe Price for more information.

I am getting a divorce; what happens to my money?

The rules in this area are complex and changing. You or your attorney should talk to the Plan Administrator at (206) 263-9250 before any divorce settlement.

Can I withdraw money to purchase a home or pay for college?

The King County Deferred Compensation Plan ofers loans for the purchase of a primary residence. You cannot withdraw funds to pay for college, but you can take a general purpose loan and a primary residence loan.

Benefits and retirement

Phone 206-684-1556
Fax: 206-296-7700

Phone hours:
9 a.m. – 4 p.m. weekdays
Payroll

Fax: 206-296-7678

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