Illinois 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 The Illinois Employees Savings Thrift Plan, also known as the Illinois 457 Plan, is a retirement savings program offered to employees working for the State of Illinois. This plan allows Illinois state employees to contribute a portion of their income on a pre-tax basis, enabling them to build a significant nest egg for their future retirement. The Illinois Employees Savings Thrift Plan offers several key features that make it a popular choice for state employees seeking to secure their financial future. Firstly, participants can choose to contribute a percentage of their salary on a pre-tax basis, which reduces their taxable income and potentially lowers their overall tax liability. This allows participants to maximize their retirement savings while enjoying immediate tax benefits. Another notable aspect of the Illinois Employees Savings Thrift Plan is the availability of employer matching contributions. The state of Illinois matches a portion of the employee's contributions, providing an additional boost to their retirement savings. The amount of the match can vary depending on the specific plan options and the individual's years of service. Flexible investment options are also a significant advantage of the Illinois Employees Savings Thrift Plan. Participants have the freedom to choose from a range of investment funds to suit their personal financial goals and risk tolerance. These options often include a selection of professionally managed mutual funds, ensuring that employees can diversify their savings and potentially earn attractive returns over the long term. Furthermore, the Illinois Employees Savings Thrift Plan offers portability, allowing participants to retain full control of their retirement savings even if they leave public employment. This means that employees can continue to manage and grow their investments within the plan or roll them over to another qualified retirement account without any penalties. In addition to the main Illinois Employees Savings Thrift Plan, the state of Illinois may also offer supplementary savings plan options such as the Illinois 457 Roth Plan. The Roth plan differs from the traditional savings plan in that contributions are made after taxes, resulting in potentially tax-free withdrawals during retirement, provided certain conditions are met. This additional plan option gives employees more flexibility in choosing the most suitable retirement savings strategy based on their individual needs and circumstances. In summary, the Illinois Employees Savings Thrift Plan is a comprehensive retirement savings program available to state employees in Illinois. With features like pre-tax contributions, employer matching, diverse investment options, and portability, this plan offers participants a solid foundation for securing their financial future. Additionally, the availability of supplementary plans like the Roth option enhances the flexibility and customization of the state's retirement savings program.

The Illinois Employees Savings Thrift Plan, also known as the Illinois 457 Plan, is a retirement savings program offered to employees working for the State of Illinois. This plan allows Illinois state employees to contribute a portion of their income on a pre-tax basis, enabling them to build a significant nest egg for their future retirement. The Illinois Employees Savings Thrift Plan offers several key features that make it a popular choice for state employees seeking to secure their financial future. Firstly, participants can choose to contribute a percentage of their salary on a pre-tax basis, which reduces their taxable income and potentially lowers their overall tax liability. This allows participants to maximize their retirement savings while enjoying immediate tax benefits. Another notable aspect of the Illinois Employees Savings Thrift Plan is the availability of employer matching contributions. The state of Illinois matches a portion of the employee's contributions, providing an additional boost to their retirement savings. The amount of the match can vary depending on the specific plan options and the individual's years of service. Flexible investment options are also a significant advantage of the Illinois Employees Savings Thrift Plan. Participants have the freedom to choose from a range of investment funds to suit their personal financial goals and risk tolerance. These options often include a selection of professionally managed mutual funds, ensuring that employees can diversify their savings and potentially earn attractive returns over the long term. Furthermore, the Illinois Employees Savings Thrift Plan offers portability, allowing participants to retain full control of their retirement savings even if they leave public employment. This means that employees can continue to manage and grow their investments within the plan or roll them over to another qualified retirement account without any penalties. In addition to the main Illinois Employees Savings Thrift Plan, the state of Illinois may also offer supplementary savings plan options such as the Illinois 457 Roth Plan. The Roth plan differs from the traditional savings plan in that contributions are made after taxes, resulting in potentially tax-free withdrawals during retirement, provided certain conditions are met. This additional plan option gives employees more flexibility in choosing the most suitable retirement savings strategy based on their individual needs and circumstances. In summary, the Illinois Employees Savings Thrift Plan is a comprehensive retirement savings program available to state employees in Illinois. With features like pre-tax contributions, employer matching, diverse investment options, and portability, this plan offers participants a solid foundation for securing their financial future. Additionally, the availability of supplementary plans like the Roth option enhances the flexibility and customization of the state's retirement savings program.