Guam 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 Guam Deferred Compensation Investment Account Plan (GDC IAP) is a retirement savings plan designed specifically for employees of the government of Guam, as well as certain nonprofit organizations. It allows participants to save and invest a portion of their pre-tax income for retirement, providing them with a tax-advantaged way to build a nest egg for their golden years. The GDC IAP offers various investment options to participants, allowing them to customize their retirement portfolios based on their risk tolerance and financial goals. These investment options typically include mutual funds, stocks, bonds, and other types of securities. Participants can choose to allocate their contributions among these options according to their individual preferences. One particular type of Guam Deferred Compensation Investment Account Plan is the traditional 401(k) plan. This type of plan enables employees to contribute a portion of their salary deferrals on a pre-tax basis, meaning that these contributions are deducted from their taxable income. The earnings on these contributions grow tax-deferred until withdrawals are made during retirement, at which point they are subject to income tax. Another type of deferred compensation plan available in Guam is the Roth 401(k). Similar to the traditional 401(k), employees can contribute a portion of their salary deferrals into a Roth account, but these contributions are made on an after-tax basis. While participants can't deduct their contributions from their taxable income, the earnings and withdrawals from the Roth account are tax-free as long as certain conditions are met. This can be advantageous for individuals who expect to be in a higher tax bracket during retirement. The Guam Deferred Compensation Investment Account Plan also offers participants the opportunity to make catch-up contributions if they are age 50 or older. These catch-up contributions allow individuals to contribute additional funds to their retirement accounts, providing them with the ability to accelerate their savings as they approach retirement age. In summary, the Guam Deferred Compensation Investment Account Plan (GDC IAP) is a retirement savings plan designed for employees of the government of Guam and select nonprofit organizations. It offers various investment options, including traditional and Roth 401(k) plans, allowing participants to save for retirement in a tax-advantaged manner. Furthermore, the GDC IAP allows for catch-up contributions for individuals aged 50 and older. By taking advantage of this plan, employees can take control of their financial future and work towards a successful retirement.

The Guam Deferred Compensation Investment Account Plan (GDC IAP) is a retirement savings plan designed specifically for employees of the government of Guam, as well as certain nonprofit organizations. It allows participants to save and invest a portion of their pre-tax income for retirement, providing them with a tax-advantaged way to build a nest egg for their golden years. The GDC IAP offers various investment options to participants, allowing them to customize their retirement portfolios based on their risk tolerance and financial goals. These investment options typically include mutual funds, stocks, bonds, and other types of securities. Participants can choose to allocate their contributions among these options according to their individual preferences. One particular type of Guam Deferred Compensation Investment Account Plan is the traditional 401(k) plan. This type of plan enables employees to contribute a portion of their salary deferrals on a pre-tax basis, meaning that these contributions are deducted from their taxable income. The earnings on these contributions grow tax-deferred until withdrawals are made during retirement, at which point they are subject to income tax. Another type of deferred compensation plan available in Guam is the Roth 401(k). Similar to the traditional 401(k), employees can contribute a portion of their salary deferrals into a Roth account, but these contributions are made on an after-tax basis. While participants can't deduct their contributions from their taxable income, the earnings and withdrawals from the Roth account are tax-free as long as certain conditions are met. This can be advantageous for individuals who expect to be in a higher tax bracket during retirement. The Guam Deferred Compensation Investment Account Plan also offers participants the opportunity to make catch-up contributions if they are age 50 or older. These catch-up contributions allow individuals to contribute additional funds to their retirement accounts, providing them with the ability to accelerate their savings as they approach retirement age. In summary, the Guam Deferred Compensation Investment Account Plan (GDC IAP) is a retirement savings plan designed for employees of the government of Guam and select nonprofit organizations. It offers various investment options, including traditional and Roth 401(k) plans, allowing participants to save for retirement in a tax-advantaged manner. Furthermore, the GDC IAP allows for catch-up contributions for individuals aged 50 and older. By taking advantage of this plan, employees can take control of their financial future and work towards a successful retirement.