Montana Supplemental Retirement Plan

• Category: Corporations - Public - Retirement
• State: Multi-State
• Control #: US-CC-21-104
• Format: Word; Rich Text

Description

21-104 21-104 . . . Supplemental Executive Retirement Plan which permits eligible management and highly-compensated employees to receive benefits that will compensate them for limitations imposed by Sections 401(a)(17), 401(k), 401(m) and 402(g) of Internal Revenue Code on salary deferrals and matching contributions under 401(k) plan Montana Supplemental Retirement Plan, also known as MSRP, is a retirement savings program available for eligible employees in the state of Montana. It is designed to supplement the benefits provided by the Montana Public Employees' Retirement System (MYERS) and Social Security. The Montana Supplemental Retirement Plan offers a tax-deferred savings option to employees who wish to save more for their retirement. By contributing a percentage of their salary to the plan, employees can enjoy the benefits of tax-deferred growth on their savings, meaning they only pay taxes on withdrawals made after their retirement. Different types of Montana Supplemental Retirement Plan include: 1. Defined Contribution Plan: This plan allows employees to make voluntary contributions to their retirement savings account. The contributions are invested in various investment options offered by the plan, such as mutual funds or target-date funds. The eventual retirement benefit depends on the performance of the chosen investments. 2. Deferred Compensation Plan: The Deferred Compensation Plan allows employees to defer a portion of their salary, and these deferred amounts are invested on a pre-tax basis. The contributions can be invested in a variety of investment choices, including mutual funds and fixed annuities. Employees can choose to receive the deferred compensation as a lump sum or in periodic payments upon retirement. 3. Roth Individual Retirement Account (IRA): This option allows eligible employees to set up a Roth IRA through the Montana Supplemental Retirement Plan. Contributions to a Roth IRA are made on an after-tax basis, meaning that contributions are not tax-deductible, but qualified withdrawals in retirement are tax-free. It provides an additional retirement savings option with potential tax advantages. To participate in the Montana Supplemental Retirement Plan, employees must meet certain eligibility criteria, such as being employed by a participating employer entity and meeting specific service requirements. The plan offers flexibility and allows employees to choose their contribution amount within certain limits. It is important for employees to carefully consider their retirement goals, risk tolerance, and investment options when selecting the Montana Supplemental Retirement Plan that best suits their needs. Consulting with a financial advisor or attending informational sessions conducted by the plan administrators can assist employees in making informed decisions about their retirement savings.

Montana Supplemental Retirement Plan, also known as MSRP, is a retirement savings program available for eligible employees in the state of Montana. It is designed to supplement the benefits provided by the Montana Public Employees' Retirement System (MYERS) and Social Security. The Montana Supplemental Retirement Plan offers a tax-deferred savings option to employees who wish to save more for their retirement. By contributing a percentage of their salary to the plan, employees can enjoy the benefits of tax-deferred growth on their savings, meaning they only pay taxes on withdrawals made after their retirement. Different types of Montana Supplemental Retirement Plan include: 1. Defined Contribution Plan: This plan allows employees to make voluntary contributions to their retirement savings account. The contributions are invested in various investment options offered by the plan, such as mutual funds or target-date funds. The eventual retirement benefit depends on the performance of the chosen investments. 2. Deferred Compensation Plan: The Deferred Compensation Plan allows employees to defer a portion of their salary, and these deferred amounts are invested on a pre-tax basis. The contributions can be invested in a variety of investment choices, including mutual funds and fixed annuities. Employees can choose to receive the deferred compensation as a lump sum or in periodic payments upon retirement. 3. Roth Individual Retirement Account (IRA): This option allows eligible employees to set up a Roth IRA through the Montana Supplemental Retirement Plan. Contributions to a Roth IRA are made on an after-tax basis, meaning that contributions are not tax-deductible, but qualified withdrawals in retirement are tax-free. It provides an additional retirement savings option with potential tax advantages. To participate in the Montana Supplemental Retirement Plan, employees must meet certain eligibility criteria, such as being employed by a participating employer entity and meeting specific service requirements. The plan offers flexibility and allows employees to choose their contribution amount within certain limits. It is important for employees to carefully consider their retirement goals, risk tolerance, and investment options when selecting the Montana Supplemental Retirement Plan that best suits their needs. Consulting with a financial advisor or attending informational sessions conducted by the plan administrators can assist employees in making informed decisions about their retirement savings.