Arkansas Supplemental Retirement Plan

• Category: Corporations - Public - Retirement
• State: Multi-State
• Control #: US-CC-21-104
• Format: Word; Rich Text

Description

21-104 21-104 . . . Supplemental Executive Retirement Plan which permits eligible management and highly-compensated employees to receive benefits that will compensate them for limitations imposed by Sections 401(a)(17), 401(k), 401(m) and 402(g) of Internal Revenue Code on salary deferrals and matching contributions under 401(k) plan The Arkansas Supplemental Retirement Plan (ARP) is a retirement program aimed at providing additional retirement savings opportunities for employees in the state of Arkansas. It is designed to supplement the primary retirement benefits provided by the Arkansas Public Employees Retirement System (PAPERS) or the Arkansas Teacher Retirement System (AIRS). The ARP offers various types of supplemental retirement plans to cater to the diverse needs and preferences of employees. These options include: 1. Deferred Compensation Plan (DCP): The DCP allows employees to defer a portion of their salary and invest it in a tax-deferred account until retirement. Contributions are made before taxes, reducing current taxable income. The account grows tax-free, and withdrawals are taxed at retirement when the individual may be in a lower tax bracket. 2. Tax-Sheltered Annuity (TSA) Program: Also known as a 403(b) plan, this option is available for employees of educational institutions, including public schools and universities. It enables participants to save for retirement by investing pre-tax funds in annuities or mutual funds. Contributions and earnings are tax-deferred until withdrawal. 3. Roth Individual Retirement Account (Roth IRA): This option allows employees to contribute after-tax dollars into an individual retirement account. Qualified withdrawals in retirement are tax-free. ARP offers employees the option to choose between a Traditional IRA and a Roth IRA, depending on their tax and retirement needs. 4. Voluntary Employee Beneficiary Association (VEGA): VEGA is a trust fund established by an employer to provide employees with specific benefits, such as health care or retirement benefits. Participants contribute pre-tax dollars to the VEGA, which are invested and later used for eligible expenses in retirement. The ARP aims to help employees supplement their retirement income and achieve a secure financial future. It provides flexibility in investment choices and tax advantages to assist employees in reaching their retirement savings goals. By offering multiple types of supplemental retirement plans, the ARP caters to various employment sectors and individual preferences in Arkansas.

The Arkansas Supplemental Retirement Plan (ARP) is a retirement program aimed at providing additional retirement savings opportunities for employees in the state of Arkansas. It is designed to supplement the primary retirement benefits provided by the Arkansas Public Employees Retirement System (PAPERS) or the Arkansas Teacher Retirement System (AIRS). The ARP offers various types of supplemental retirement plans to cater to the diverse needs and preferences of employees. These options include: 1. Deferred Compensation Plan (DCP): The DCP allows employees to defer a portion of their salary and invest it in a tax-deferred account until retirement. Contributions are made before taxes, reducing current taxable income. The account grows tax-free, and withdrawals are taxed at retirement when the individual may be in a lower tax bracket. 2. Tax-Sheltered Annuity (TSA) Program: Also known as a 403(b) plan, this option is available for employees of educational institutions, including public schools and universities. It enables participants to save for retirement by investing pre-tax funds in annuities or mutual funds. Contributions and earnings are tax-deferred until withdrawal. 3. Roth Individual Retirement Account (Roth IRA): This option allows employees to contribute after-tax dollars into an individual retirement account. Qualified withdrawals in retirement are tax-free. ARP offers employees the option to choose between a Traditional IRA and a Roth IRA, depending on their tax and retirement needs. 4. Voluntary Employee Beneficiary Association (VEGA): VEGA is a trust fund established by an employer to provide employees with specific benefits, such as health care or retirement benefits. Participants contribute pre-tax dollars to the VEGA, which are invested and later used for eligible expenses in retirement. The ARP aims to help employees supplement their retirement income and achieve a secure financial future. It provides flexibility in investment choices and tax advantages to assist employees in reaching their retirement savings goals. By offering multiple types of supplemental retirement plans, the ARP caters to various employment sectors and individual preferences in Arkansas.