OBRA Plan

Below are the important features about your plan. This website is intended to be a summary of the plan provisions.  In the event that a conflict exists between the information contained within this website and the plan document, the plan document provisions prevail. For more information, please contact your local financial professional.

Eligibility

The OBRA Plan is available to non-benefitted, part time, seasonal or intermittent employees.

Contributions

Washoe County will automatically deduct 7.5% of gross salary and forward it to Voya on a bi-weekly basis. Contributions are invested in the Voya Fixed Account.

Roth after-tax contributions are not available

Loans

Loans are not permitted in the Plan.

Permitted Distribution

The Plan allows for the following distributions: severance of employment, required minimum distribution

Payment Options

When you are eligible to receive a distribution under the Plan, you have a variety of payout options. These payout options include: 

Systematic withdrawal of your account 

Annuity options

Deferral of all or a portion of your benefits to a later date                   

  • The latest date to which you can defer payments is the April 1st of the year following the year you reach age 73, or April 1st of the year following the year you retire, whichever is later.

Lump sum or partial lump sum distribution in combination with other options 

  • Take all or a portion of your account balance in cash. 

Rollover into Another Eligible Plan 

  • Your distribution can be rolled over into a 401(a), 401(k), 403(b), other governmental 457 plan, or a traditional IRA, if available and roll-overs are permitted.

All distributions are eligible for rollover except for:

  • IRS minimum required distributions payable on or after you attain age 73; and
  • Periodic payments made over your life or a specified period of 10 years or more.

Mutual funds under a custodial or trust account agreement are intended as long‐term investments designed for retirement purposes. Money distributed from a 401(a) plan or a 457 plan will be taxed as ordinary income in the year the money is distributed. Early withdrawals from a 401(a) plan, if taken prior to age 59½, will be subject to the IRS 10% premature distribution penalty tax. This IRS premature distribution penalty tax does not apply to 457 plans. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than the original amount invested. A group fixed annuity is an insurance contract designed for investing for retirement purposes. The guarantee of the fixed account is based on the claims‐paying ability of the issuing insurance company. Although it is possible to have guaranteed income for life with a fixed annuity, there is no assurance that this income will keep up with inflation. Money taken from the plan will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax benefit, as tax deferral is provided by the Plan. Annuities may be subject to additional fees and expenses, to which other tax‐deferred funding vehicles may not be subject. However, an annuity does offer other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you.