Kentucky 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 Kentucky Deferred Compensation Investment Account Plan is a retirement savings program specifically designed for state and local government employees in Kentucky. It offers a tax-advantaged way for eligible individuals to save and invest money for their future financial security. Through this program, employees have the opportunity to contribute a portion of their pre-tax income into various investment options, thereby reducing their taxable income. The contributions are automatically deducted from their paychecks and deposited into individual accounts within the plan. By deferring taxes on these contributions, participants have the advantage of potentially higher investment growth over time. The Kentucky Deferred Compensation Investment Account Plan offers a range of investment options, allowing employees to customize their portfolios based on their risk tolerance and financial goals. These options may comprise various asset classes, such as stocks, bonds, mutual funds, and target-date funds. By diversifying their investments, participants can help reduce their exposure to market volatility and potentially enhance long-term returns. Moreover, the plan provides several valuable features to enhance participants' retirement saving experience. These include tools and resources for assessing investment risk and return potential, education sessions to help employees make informed decisions, and personalized advice to guide their investment strategies. Additionally, participants can easily monitor and manage their account online, enabling them to track performance, make changes, and review various investment-related materials whenever convenient. It is worth mentioning that Kentucky Deferred Compensation Investment Account Plan has different types of accounts based on the employees' preferences and objectives. Some common types are: 1. Traditional Deferred Compensation Account: This account allows participants to make pre-tax contributions, reducing their taxable income while potentially benefiting from tax time deferral. Withdrawals from these accounts are subject to ordinary income tax in retirement. 2. Roth Deferred Compensation Account: By contributing to a Roth account, participants make after-tax contributions, meaning their withdrawals in retirement are potentially tax-free. This can provide a tax diversification strategy, as distributions from this account do not increase taxable income. Overall, the Kentucky Deferred Compensation Investment Account Plan aims to empower state and local government employees to take control of their retirement savings journey. By offering a wide range of investment options, educational resources, and user-friendly account management tools, this plan enables participants to build a solid financial foundation and strive for a comfortable retirement.

The Kentucky Deferred Compensation Investment Account Plan is a retirement savings program specifically designed for state and local government employees in Kentucky. It offers a tax-advantaged way for eligible individuals to save and invest money for their future financial security. Through this program, employees have the opportunity to contribute a portion of their pre-tax income into various investment options, thereby reducing their taxable income. The contributions are automatically deducted from their paychecks and deposited into individual accounts within the plan. By deferring taxes on these contributions, participants have the advantage of potentially higher investment growth over time. The Kentucky Deferred Compensation Investment Account Plan offers a range of investment options, allowing employees to customize their portfolios based on their risk tolerance and financial goals. These options may comprise various asset classes, such as stocks, bonds, mutual funds, and target-date funds. By diversifying their investments, participants can help reduce their exposure to market volatility and potentially enhance long-term returns. Moreover, the plan provides several valuable features to enhance participants' retirement saving experience. These include tools and resources for assessing investment risk and return potential, education sessions to help employees make informed decisions, and personalized advice to guide their investment strategies. Additionally, participants can easily monitor and manage their account online, enabling them to track performance, make changes, and review various investment-related materials whenever convenient. It is worth mentioning that Kentucky Deferred Compensation Investment Account Plan has different types of accounts based on the employees' preferences and objectives. Some common types are: 1. Traditional Deferred Compensation Account: This account allows participants to make pre-tax contributions, reducing their taxable income while potentially benefiting from tax time deferral. Withdrawals from these accounts are subject to ordinary income tax in retirement. 2. Roth Deferred Compensation Account: By contributing to a Roth account, participants make after-tax contributions, meaning their withdrawals in retirement are potentially tax-free. This can provide a tax diversification strategy, as distributions from this account do not increase taxable income. Overall, the Kentucky Deferred Compensation Investment Account Plan aims to empower state and local government employees to take control of their retirement savings journey. By offering a wide range of investment options, educational resources, and user-friendly account management tools, this plan enables participants to build a solid financial foundation and strive for a comfortable retirement.