Retirement looks different for everyone. Maybe you get a few months in and miss the routine. Maybe an opportunity comes along, or you just want some extra income. Whatever the reason, if you ever find yourself heading back to work for the State of Missouri, there's something important to know about your deferred comp account. The IRS considers you an "active" employee the moment you return to state work; whether it’s full or part-time, it doesn't matter. Active employees can't withdraw funds from their 457 or incentive plan, but active employees can contribute to their deferred comp account and continue to build their savings balance. There is one exception, though: qualified rollover funds. If you've rolled money in from an outside account or rolled in your BackDROP funds from MOSERS or MPERS, those can still be withdrawn if you return to work. Keep in mind, a 10% penalty may apply depending on your age and the type of rollover. Once you leave state service again, you'll regain full withdrawal access, but only after 30 days from when your employer reports your separation date. That reporting can take up to two to three weeks, so plan ahead. And remember, keeping your money in the MO Deferred Comp Plan after retirement has real perks: penalty-free access before age 59½, low fees, and easy online account management. Just know you'll need to start required minimum distributions the year you turn age 73 and are no longer an active state employee. Questions about your specific situation? Reach out to your local deferred comp financial education professional before you make any moves.
