North Dakota 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 North Dakota Employees Savings Thrift Plan is a retirement savings plan designed for employees of the state of North Dakota. It offers a convenient and tax-advantaged way for eligible employees to save for their retirement. This plan is a defined contribution retirement plan that allows employees to contribute a portion of their salary to their individual retirement accounts (IRAs). These contributions are made on a pre-tax basis, meaning that the income used to fund the account is not subject to federal or state income taxes until it is withdrawn during retirement. One of the main benefits of the North Dakota Employees Savings Thrift Plan is the employer match. The state of North Dakota matches a portion of the employee's contributions, which helps increase the overall retirement savings. This match is determined by a specific formula outlined in the plan's rules and regulations. There are different types of North Dakota Employees Savings Thrift Plans available to employees. The most common type is the traditional 401(k)-style plan, where employees can contribute a percentage of their salary to their retirement accounts. These contributions are typically invested in a selection of mutual funds or other investment options pre-approved by the plan administrator. Another type of plan available is the Roth 401(k) option. This allows employees to make after-tax contributions to their retirement accounts, meaning that withdrawals during retirement are tax-free. This option is particularly attractive for employees who anticipate being in a higher tax bracket during retirement. Additionally, some employees may have access to a 457(b) plan, which is a deferred compensation plan available to certain government and non-profit organizations. The North Dakota Employees Savings Thrift Plan sometimes includes a 457(b) component to provide employees with even more retirement savings options. Overall, the North Dakota Employees Savings Thrift Plan is an excellent way for employees of the state of North Dakota to save for their retirement. With its tax advantages, employer match, and various plan options, employees have the opportunity to grow their retirement savings and secure a financially stable future.

The North Dakota Employees Savings Thrift Plan is a retirement savings plan designed for employees of the state of North Dakota. It offers a convenient and tax-advantaged way for eligible employees to save for their retirement. This plan is a defined contribution retirement plan that allows employees to contribute a portion of their salary to their individual retirement accounts (IRAs). These contributions are made on a pre-tax basis, meaning that the income used to fund the account is not subject to federal or state income taxes until it is withdrawn during retirement. One of the main benefits of the North Dakota Employees Savings Thrift Plan is the employer match. The state of North Dakota matches a portion of the employee's contributions, which helps increase the overall retirement savings. This match is determined by a specific formula outlined in the plan's rules and regulations. There are different types of North Dakota Employees Savings Thrift Plans available to employees. The most common type is the traditional 401(k)-style plan, where employees can contribute a percentage of their salary to their retirement accounts. These contributions are typically invested in a selection of mutual funds or other investment options pre-approved by the plan administrator. Another type of plan available is the Roth 401(k) option. This allows employees to make after-tax contributions to their retirement accounts, meaning that withdrawals during retirement are tax-free. This option is particularly attractive for employees who anticipate being in a higher tax bracket during retirement. Additionally, some employees may have access to a 457(b) plan, which is a deferred compensation plan available to certain government and non-profit organizations. The North Dakota Employees Savings Thrift Plan sometimes includes a 457(b) component to provide employees with even more retirement savings options. Overall, the North Dakota Employees Savings Thrift Plan is an excellent way for employees of the state of North Dakota to save for their retirement. With its tax advantages, employer match, and various plan options, employees have the opportunity to grow their retirement savings and secure a financially stable future.