Illinois 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 Illinois Deferred Compensation Investment Account Plan is a retirement savings program specifically designed for employees of the state of Illinois and participating governmental agencies. With this plan, individuals have the opportunity to contribute a portion of their salary on a pre-tax basis, allowing for potential tax savings and long-term investment growth. The primary objective of the Illinois Deferred Compensation Investment Account Plan is to assist state employees in accumulating retirement savings by offering a wide range of investment options. These options include various asset classes such as stocks, bonds, mutual funds, and stable value funds. Participants can choose from a diverse selection of investments, allowing them to customize their portfolio according to their risk tolerance and financial goals. One of the key advantages of the Illinois Deferred Compensation Investment Account Plan is its tax-deferred nature. Contributions made to the plan are deducted from the participant's current taxable income, which helps lower their overall tax liability. Additionally, any earnings generated from the investments within the account grow on a tax-deferred basis until withdrawal during retirement. At that point, the withdrawals are subject to ordinary income tax. Furthermore, participants in the Illinois Deferred Compensation Investment Account Plan may also benefit from employer matching contributions. These additional funds can significantly enhance the overall growth of one's retirement savings and provide a powerful incentive for employees to actively participate in the plan. In terms of different types of investment accounts within the plan, the Illinois Deferred Compensation Investment Account Plan offers both a traditional pre-tax account and a Roth after-tax account. The traditional account allows participants to defer taxes on their contributions and earnings until retirement, while the Roth account enables individuals to make after-tax contributions but enjoy tax-free withdrawals during retirement. Overall, the Illinois Deferred Compensation Investment Account Plan provides a valuable opportunity for state employees to save for retirement in a tax-advantaged manner. By offering a wide range of investment options, tax benefits, and potential employer matching contributions, the plan aims to empower participants to take control of their financial future.

The Illinois Deferred Compensation Investment Account Plan is a retirement savings program specifically designed for employees of the state of Illinois and participating governmental agencies. With this plan, individuals have the opportunity to contribute a portion of their salary on a pre-tax basis, allowing for potential tax savings and long-term investment growth. The primary objective of the Illinois Deferred Compensation Investment Account Plan is to assist state employees in accumulating retirement savings by offering a wide range of investment options. These options include various asset classes such as stocks, bonds, mutual funds, and stable value funds. Participants can choose from a diverse selection of investments, allowing them to customize their portfolio according to their risk tolerance and financial goals. One of the key advantages of the Illinois Deferred Compensation Investment Account Plan is its tax-deferred nature. Contributions made to the plan are deducted from the participant's current taxable income, which helps lower their overall tax liability. Additionally, any earnings generated from the investments within the account grow on a tax-deferred basis until withdrawal during retirement. At that point, the withdrawals are subject to ordinary income tax. Furthermore, participants in the Illinois Deferred Compensation Investment Account Plan may also benefit from employer matching contributions. These additional funds can significantly enhance the overall growth of one's retirement savings and provide a powerful incentive for employees to actively participate in the plan. In terms of different types of investment accounts within the plan, the Illinois Deferred Compensation Investment Account Plan offers both a traditional pre-tax account and a Roth after-tax account. The traditional account allows participants to defer taxes on their contributions and earnings until retirement, while the Roth account enables individuals to make after-tax contributions but enjoy tax-free withdrawals during retirement. Overall, the Illinois Deferred Compensation Investment Account Plan provides a valuable opportunity for state employees to save for retirement in a tax-advantaged manner. By offering a wide range of investment options, tax benefits, and potential employer matching contributions, the plan aims to empower participants to take control of their financial future.