Louisiana 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 Louisiana Deferred Compensation Investment Account Plan is a retirement savings program designed specifically for employees of the state of Louisiana and participating local government agencies. It allows participants to invest a portion of their pre-tax earnings into a variety of investment options, providing an opportunity for long-term growth and financial security during retirement. The Louisiana Deferred Compensation Investment Account Plan offers several types of investment accounts, each catering to specific needs and risk tolerance levels of the participants. These accounts include: 1. Traditional Deferred Compensation Account: This account allows participants to make pre-tax contributions, reducing their current taxable income. The funds in this account grow tax-deferred until withdrawn during retirement. 2. Roth Deferred Compensation Account: This account offers participants the option to make after-tax contributions, meaning that withdrawals during retirement are tax-free. Participants choose this account if they believe their tax rate will be higher in retirement. 3. Fixed Income Account: A conservative investment option, the fixed income account focuses on fixed-rate instruments such as bonds and treasury bills. It aims to provide capital preservation and steady income. 4. Equity Index Account: This account seeks to replicate the performance of a specific index, such as the S&P 500. It offers participants exposure to the stock market's potential for growth, while also providing diversification through index-based investing. 5. Money Market Account: Considered a low-risk investment option, the money market account focuses on short-term, high-quality debt securities. It provides stability and preserves capital, making it suitable for participants with a lower risk tolerance. 6. Mutual Fund Account: This account offers participants the opportunity to invest in a range of professionally managed mutual funds, covering various asset classes, including stocks, bonds, and international investments. It allows for diversification and potential growth. Participants of the Louisiana Deferred Compensation Investment Account Plan can allocate their contributions into one or multiple accounts based on their personal financial goals, risk appetite, and desired asset allocation. They also have the flexibility to change their investment elections periodically, ensuring their investment strategy aligns with their changing circumstances. By offering a variety of investment account options, the Louisiana Deferred Compensation Investment Account Plan empowers employees to take control of their retirement savings and build a customized portfolio tailored to their unique needs and preferences. Participants benefit from the tax advantages and potential growth of their investments, allowing them to secure a financially stable retirement future.

Louisiana Deferred Compensation Investment Account Plan is a retirement savings program designed specifically for employees of the state of Louisiana and participating local government agencies. It allows participants to invest a portion of their pre-tax earnings into a variety of investment options, providing an opportunity for long-term growth and financial security during retirement. The Louisiana Deferred Compensation Investment Account Plan offers several types of investment accounts, each catering to specific needs and risk tolerance levels of the participants. These accounts include: 1. Traditional Deferred Compensation Account: This account allows participants to make pre-tax contributions, reducing their current taxable income. The funds in this account grow tax-deferred until withdrawn during retirement. 2. Roth Deferred Compensation Account: This account offers participants the option to make after-tax contributions, meaning that withdrawals during retirement are tax-free. Participants choose this account if they believe their tax rate will be higher in retirement. 3. Fixed Income Account: A conservative investment option, the fixed income account focuses on fixed-rate instruments such as bonds and treasury bills. It aims to provide capital preservation and steady income. 4. Equity Index Account: This account seeks to replicate the performance of a specific index, such as the S&P 500. It offers participants exposure to the stock market's potential for growth, while also providing diversification through index-based investing. 5. Money Market Account: Considered a low-risk investment option, the money market account focuses on short-term, high-quality debt securities. It provides stability and preserves capital, making it suitable for participants with a lower risk tolerance. 6. Mutual Fund Account: This account offers participants the opportunity to invest in a range of professionally managed mutual funds, covering various asset classes, including stocks, bonds, and international investments. It allows for diversification and potential growth. Participants of the Louisiana Deferred Compensation Investment Account Plan can allocate their contributions into one or multiple accounts based on their personal financial goals, risk appetite, and desired asset allocation. They also have the flexibility to change their investment elections periodically, ensuring their investment strategy aligns with their changing circumstances. By offering a variety of investment account options, the Louisiana Deferred Compensation Investment Account Plan empowers employees to take control of their retirement savings and build a customized portfolio tailored to their unique needs and preferences. Participants benefit from the tax advantages and potential growth of their investments, allowing them to secure a financially stable retirement future.