Begin saving more money for later while saving taxes now with RSA-1. Any public official or employee of the state of Alabama or any political subdivision of the state is eligible to enroll, regardless of age or participation in the RSA. The RSA-1 Program is voluntary, and can help you plan for a secure financial future.
Read your RSA-1 Member Handbook for more information!
Enrolling is an easy three step process!
- Complete the forms. To set up your account, you'll complete the RSA-1 Enrollment form, Beneficiary Designation form and Investment Option Election form.
- Determine how much of your earnings you want to defer each paycheck. There is no minimum to a Deferral Limit established by the IRS each year.
- Complete the Authorization to Defer Compensation form stating the amount you wish to defer, and submit it to your payroll office – not to RSA-1. Contributions can only be deferred through payroll deductions.
Investment Options and Deferrals
- You have three options to invest: Bonds Income, Stock, and Short-Term Investment Fund (STIF).
- Once you make your investment options, you may make changes every 90 days.
- There are Deferral Limits you can make each year, but you can also Catch-Up Deferrals close to retirement.
- You can also defer Sick and Annual Leave payments to RSA-1 at termination of employment.
Distribution of your RSA-1 Funds
RSA-1 is not a savings account from which you make periodic withdrawals, but a retirement account that is available only after you have either retired or otherwise terminated employment. Contact Member Services with any distribution questions you may have.
- When can I Withdraw my money from RSA-1?
- What if I need money for an Unforeseeable Emergency?
- If my balance is Small, can I withdraw my account balance?
Distribution at Separation of Service
There are Five Distribution Elections you can choose from.
Is there a Required Minimum Distribution I can take at separation of service?
What happens to my distribution in the case of death? Will my Beneficiary continue the same distributions?
Transfers and Rollovers
You can use your RSA-1 funds to Purchase Permissive ERS or TRS Service Credit.
You can also Transfer Other 457 Funds into or out of RSA-1.
Save on taxes by rolling your DROP Account into RSA-1 once you have retired.