Connecticut Deferred Compensation Investment Account Plan

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• Control #: US-CC-20-146
• Format: Word; Rich Text

Description

20-146 20-146 . . . Deferred Compensation Investment Account Plan under which Board of Directors of Savings and Loan Association allocates a portion of annual bonuses which would otherwise be paid to selected officers and employees to a separate account. The deferred compensation in such account is deemed, for purposes of Plan only, to represent specified percentages of Association's investments in certain portfolios of equity securities, and it is increased or decreased to same extent as performance of such securities Connecticut Deferred Compensation Investment Account Plan, also known as the Connecticut CIA, is a retirement savings program designed for employees of the State of Connecticut and participating public entities. This voluntary plan allows employees to contribute a portion of their salary on a tax-deferred basis, allowing for potential growth of their retirement savings over time. The Connecticut CIA offers various investment options to participants, including mutual funds managed by reputable investment companies. These investment options are carefully selected to provide diversification and cater to different risk tolerances and financial goals. One of the key features of the Connecticut CIA is the ability for participants to choose between a traditional pre-tax contribution or a Roth after-tax contribution. Traditional contributions are deducted from the employee's paycheck before taxes, reducing their current taxable income. Roth's contributions, on the other hand, are made with after-tax dollars, but qualified withdrawals in retirement are tax-free. In addition to the primary Connecticut CIA plan, there are two other types of accounts available within the program. The first is the Roth In-Plan Conversion Account, which allows participants to convert their traditional pre-tax contributions into Roth after-tax contributions, providing potential tax-free income in retirement. The second is the Roth 457(b) Account, which is specifically designed for employees who are already making Roth contributions to the plan. Participants in the Connecticut CIA have access to online tools and resources to help them make informed investment decisions. They can review investment performance, track contributions, make changes to their allocations, and access educational materials to improve their financial literacy. It is important to note that the Connecticut CIA is intended for long-term retirement savings and is subject to IRS regulations and contribution limits. Participants should consult with a financial advisor or tax professional to determine the best strategy for their individual circumstances. In summary, the Connecticut Deferred Compensation Investment Account Plan is a retirement savings program offered to eligible employees of the State of Connecticut and participating public entities. It provides a range of investment options, including traditional and Roth contributions, to help participants grow their retirement savings. The Roth In-Plan Conversion Account and Roth 457(b) Account are additional options available to enhance flexibility. With access to online tools and educational resources, participants can actively manage their investments and make informed decisions for their financial future.

Connecticut Deferred Compensation Investment Account Plan, also known as the Connecticut CIA, is a retirement savings program designed for employees of the State of Connecticut and participating public entities. This voluntary plan allows employees to contribute a portion of their salary on a tax-deferred basis, allowing for potential growth of their retirement savings over time. The Connecticut CIA offers various investment options to participants, including mutual funds managed by reputable investment companies. These investment options are carefully selected to provide diversification and cater to different risk tolerances and financial goals. One of the key features of the Connecticut CIA is the ability for participants to choose between a traditional pre-tax contribution or a Roth after-tax contribution. Traditional contributions are deducted from the employee's paycheck before taxes, reducing their current taxable income. Roth's contributions, on the other hand, are made with after-tax dollars, but qualified withdrawals in retirement are tax-free. In addition to the primary Connecticut CIA plan, there are two other types of accounts available within the program. The first is the Roth In-Plan Conversion Account, which allows participants to convert their traditional pre-tax contributions into Roth after-tax contributions, providing potential tax-free income in retirement. The second is the Roth 457(b) Account, which is specifically designed for employees who are already making Roth contributions to the plan. Participants in the Connecticut CIA have access to online tools and resources to help them make informed investment decisions. They can review investment performance, track contributions, make changes to their allocations, and access educational materials to improve their financial literacy. It is important to note that the Connecticut CIA is intended for long-term retirement savings and is subject to IRS regulations and contribution limits. Participants should consult with a financial advisor or tax professional to determine the best strategy for their individual circumstances. In summary, the Connecticut Deferred Compensation Investment Account Plan is a retirement savings program offered to eligible employees of the State of Connecticut and participating public entities. It provides a range of investment options, including traditional and Roth contributions, to help participants grow their retirement savings. The Roth In-Plan Conversion Account and Roth 457(b) Account are additional options available to enhance flexibility. With access to online tools and educational resources, participants can actively manage their investments and make informed decisions for their financial future.