Maine 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 Maine Employees Savings Thrift Plan, also known as the Maine 457 Deferred Compensation Plan, is a retirement savings program specifically designed for employees working for the state of Maine and other participating employers. The plan allows employees to save and invest pre-tax contributions from their paycheck, helping them build a secure financial future. The Maine Employees Savings Thrift Plan offers several investment options, including mutual funds, fixed income funds, and target-date funds. These options allow participants to diversify their portfolio based on their risk tolerance and investment goals. One of the key benefits of the Maine Employees Savings Thrift Plan is the ability to make tax-deferred contributions, meaning that employees don't pay taxes on their contributions or earnings until they withdraw the funds in retirement. This feature can significantly enhance the growth potential of the savings. In addition to the core Maine Employees Savings Thrift Plan, there are additional variations of the plan available to certain eligible employees. These variations include: 1. Roth 457 Plan: This option allows participants to make after-tax contributions to the plan. Although contributions to a Roth 457 Plan are not tax-deductible, qualified withdrawals in retirement are tax-free. 2. Catch-up Contributions: Participants who are age 50 or older can make additional catch-up contributions to their Maine Employees Savings Thrift Plan. These extra contributions provide an opportunity for employees to accelerate their savings as they approach retirement. 3. In-Service Withdrawals: Certain participants may be eligible to make in-service withdrawals from their Maine Employees Savings Thrift Plan account, allowing them to access their savings before retirement under specific circumstances. Overall, the Maine Employees Savings Thrift Plan offers a valuable vehicle for Maine state employees and participating employers to save for retirement with tax advantages. The plan's multiple investment options and additional variations provide flexibility for participants to customize their retirement savings strategy according to their individual needs and preferences.

Maine Employees Savings Thrift Plan, also known as the Maine 457 Deferred Compensation Plan, is a retirement savings program specifically designed for employees working for the state of Maine and other participating employers. The plan allows employees to save and invest pre-tax contributions from their paycheck, helping them build a secure financial future. The Maine Employees Savings Thrift Plan offers several investment options, including mutual funds, fixed income funds, and target-date funds. These options allow participants to diversify their portfolio based on their risk tolerance and investment goals. One of the key benefits of the Maine Employees Savings Thrift Plan is the ability to make tax-deferred contributions, meaning that employees don't pay taxes on their contributions or earnings until they withdraw the funds in retirement. This feature can significantly enhance the growth potential of the savings. In addition to the core Maine Employees Savings Thrift Plan, there are additional variations of the plan available to certain eligible employees. These variations include: 1. Roth 457 Plan: This option allows participants to make after-tax contributions to the plan. Although contributions to a Roth 457 Plan are not tax-deductible, qualified withdrawals in retirement are tax-free. 2. Catch-up Contributions: Participants who are age 50 or older can make additional catch-up contributions to their Maine Employees Savings Thrift Plan. These extra contributions provide an opportunity for employees to accelerate their savings as they approach retirement. 3. In-Service Withdrawals: Certain participants may be eligible to make in-service withdrawals from their Maine Employees Savings Thrift Plan account, allowing them to access their savings before retirement under specific circumstances. Overall, the Maine Employees Savings Thrift Plan offers a valuable vehicle for Maine state employees and participating employers to save for retirement with tax advantages. The plan's multiple investment options and additional variations provide flexibility for participants to customize their retirement savings strategy according to their individual needs and preferences.