Guam Employees Savings Thrift Plan

• Category: Corporations - Public - Employees
• State: Multi-State
• Control #: US-CC-22-118E
• Format: Word; Rich Text

Description

22-118E 22-118E . . . Employee Savings Thrift Plan under which three types of contributions can be made: (a) those permitted under a qualified Cash Or Deferred Arrangement ("CODA") under Section 401(k) of Internal Revenue Code, (b) those made by participating companies matching 40% of CODA contributions, and (c) additional voluntary employee contributions made by participants who elect maximum CODA contribution and wish to save additional amounts out of after-tax dollars Guam Employees Savings Thrift Plan (GET) is a retirement savings plan specifically designed for employees of the government of Guam, its autonomous agencies, and participating employers. GET allows employees to save a portion of their income on a pre-tax basis, reducing their current taxable income and building a nest egg for retirement. As an employer-sponsored retirement plan, GET offers several benefits to its participants. Firstly, it provides a convenient way for employees to save for retirement through payroll deductions, making it easy to contribute regularly. Secondly, GET allows for pre-tax contributions, meaning that the amount employees contribute is deducted from their taxable income, resulting in lower tax liability each year. Moreover, all contributions and accumulated earnings grow tax-deferred until withdrawal during retirement. Withdrawals from the Guam Employees Savings Thrift Plan are generally only allowed upon reaching retirement age, which is typically at age 59 1/2. At this point, employees can choose to receive periodic payments or a lump sum distribution. However, in certain circumstances such as financial hardship, disability, or separation of service, participants may be eligible for earlier withdrawals, though they may be subject to taxes and penalties. It's also important to note that GET offers different types of investment options to best suit each employee's risk tolerance and financial goals. These options include various asset classes such as stocks, bonds, and money market funds. Participants can allocate their contributions across these investment options according to their own preferences. Additionally, GET provides access to professional investment management tools and resources to help employees make informed investment decisions. In summary, Guam Employees Savings Thrift Plan (GET) is a retirement savings plan exclusively available to employees of the government of Guam and participating employers. It offers tax advantages, flexible investment options, and helps individuals build a secure financial future for their retirement.

Guam Employees Savings Thrift Plan (GET) is a retirement savings plan specifically designed for employees of the government of Guam, its autonomous agencies, and participating employers. GET allows employees to save a portion of their income on a pre-tax basis, reducing their current taxable income and building a nest egg for retirement. As an employer-sponsored retirement plan, GET offers several benefits to its participants. Firstly, it provides a convenient way for employees to save for retirement through payroll deductions, making it easy to contribute regularly. Secondly, GET allows for pre-tax contributions, meaning that the amount employees contribute is deducted from their taxable income, resulting in lower tax liability each year. Moreover, all contributions and accumulated earnings grow tax-deferred until withdrawal during retirement. Withdrawals from the Guam Employees Savings Thrift Plan are generally only allowed upon reaching retirement age, which is typically at age 59 1/2. At this point, employees can choose to receive periodic payments or a lump sum distribution. However, in certain circumstances such as financial hardship, disability, or separation of service, participants may be eligible for earlier withdrawals, though they may be subject to taxes and penalties. It's also important to note that GET offers different types of investment options to best suit each employee's risk tolerance and financial goals. These options include various asset classes such as stocks, bonds, and money market funds. Participants can allocate their contributions across these investment options according to their own preferences. Additionally, GET provides access to professional investment management tools and resources to help employees make informed investment decisions. In summary, Guam Employees Savings Thrift Plan (GET) is a retirement savings plan exclusively available to employees of the government of Guam and participating employers. It offers tax advantages, flexible investment options, and helps individuals build a secure financial future for their retirement.