The New Mexico Employees Savings Thrift Plan is a retirement savings plan specifically designed for employees of the state of New Mexico. It offers a convenient way for employees to save for their retirement by contributing a portion of their pre-tax salary to the plan. Participants can choose from a variety of investment options to help grow their savings over time. One type of New Mexico Employees Savings Thrift Plan is the Traditional 401(k) Plan. This plan allows employees to make pre-tax contributions from their salary, reducing their taxable income. The contributions and any investment earnings are tax-deferred until they are withdrawn during retirement. This type of plan provides an opportunity for employees to potentially lower their current tax liability while building their retirement savings. Another type of plan available is the Roth 401(k) Plan. With this option, employees make after-tax contributions from their salary, meaning their contributions are not tax-deductible. However, qualified withdrawals in retirement, including earnings, are tax-free. The Roth 401(k) is advantageous for individuals who anticipate being in a higher tax bracket during retirement as it allows for tax-free growth and future tax-free distributions. Additionally, the New Mexico Employees Savings Thrift Plan offers the option of making catch-up contributions for those aged 50 and older. These catch-up contributions allow older employees to make additional contributions beyond the regular annual limits, enabling them to accelerate their retirement savings. To ensure a diversified investment strategy, employees can choose from a range of investment options within the New Mexico Employees Savings Thrift Plan. These options include various mutual funds, bond funds, and target-date funds, allowing participants to tailor their investments to match their risk tolerance and retirement goals. The New Mexico Employees Savings Thrift Plan aims to provide participants with a flexible and convenient retirement savings vehicle. It offers tax advantages, investment options, and the ability to contribute more as employees approach retirement age. By taking advantage of this plan, employees can take control of their financial future and work towards a comfortable retirement.