Arkansas 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 The Arkansas Deferred Compensation Investment Account (CIA) Plan is a voluntary retirement plan available for state and public school employees in Arkansas. It allows employees to contribute a portion of their salary on a pre-tax basis, which can grow tax-deferred until withdrawal during retirement. The CIA Plan is designed to help employees build a secure financial future by offering a variety of investment options to suit their individual needs and goals. By participating in this plan, employees can take advantage of potential tax savings and maximize their retirement savings power. Here are the different types of Arkansas Deferred Compensation Investment Account Plans: 1. 457(b) Plan: The 457(b) plan is the main option available under the Arkansas CIA Plan. It allows employees to defer a portion of their pre-tax income into a retirement account. Contributions made to this plan are not subject to federal income tax or Arkansas state income tax until withdrawn. Employees can choose from various investment options to diversify their portfolio and potentially grow their savings over time. 2. Roth 457(b) Plan: This type of plan is similar to the traditional 457(b) plan, but with a Roth option. With the Roth 457(b) plan, employees contribute a portion of their after-tax income, allowing for potential tax-free withdrawals during retirement. It offers a valuable tax planning strategy for individuals who anticipate being in a higher tax bracket during retirement. 3. Catch-up Contribution: The Arkansas CIA Plan also allows for catch-up contributions for employees closer to retirement age. Catch-up contributions enable participants aged 50 or older to contribute additional funds above the regular contribution limits. These additional contributions can help individuals bridge the savings gap and boost their retirement nest egg. In summary, the Arkansas Deferred Compensation Investment Account Plan provides state and public school employees with an opportunity to save for retirement while enjoying potential tax advantages. With multiple plan options available, employees can tailor their contributions and investments to align with their unique retirement goals and risk tolerance. It is crucial for employees to understand their options and consider consulting with a financial advisor to make informed decisions about their financial future.

The Arkansas Deferred Compensation Investment Account (CIA) Plan is a voluntary retirement plan available for state and public school employees in Arkansas. It allows employees to contribute a portion of their salary on a pre-tax basis, which can grow tax-deferred until withdrawal during retirement. The CIA Plan is designed to help employees build a secure financial future by offering a variety of investment options to suit their individual needs and goals. By participating in this plan, employees can take advantage of potential tax savings and maximize their retirement savings power. Here are the different types of Arkansas Deferred Compensation Investment Account Plans: 1. 457(b) Plan: The 457(b) plan is the main option available under the Arkansas CIA Plan. It allows employees to defer a portion of their pre-tax income into a retirement account. Contributions made to this plan are not subject to federal income tax or Arkansas state income tax until withdrawn. Employees can choose from various investment options to diversify their portfolio and potentially grow their savings over time. 2. Roth 457(b) Plan: This type of plan is similar to the traditional 457(b) plan, but with a Roth option. With the Roth 457(b) plan, employees contribute a portion of their after-tax income, allowing for potential tax-free withdrawals during retirement. It offers a valuable tax planning strategy for individuals who anticipate being in a higher tax bracket during retirement. 3. Catch-up Contribution: The Arkansas CIA Plan also allows for catch-up contributions for employees closer to retirement age. Catch-up contributions enable participants aged 50 or older to contribute additional funds above the regular contribution limits. These additional contributions can help individuals bridge the savings gap and boost their retirement nest egg. In summary, the Arkansas Deferred Compensation Investment Account Plan provides state and public school employees with an opportunity to save for retirement while enjoying potential tax advantages. With multiple plan options available, employees can tailor their contributions and investments to align with their unique retirement goals and risk tolerance. It is crucial for employees to understand their options and consider consulting with a financial advisor to make informed decisions about their financial future.