Oregon 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 Oregon Deferred Compensation Investment Account Plan is a retirement savings program offered to Oregon public employees, which helps them set aside funds for their post-employment years. This plan is designed to supplement other retirement income sources, such as pension plans and Social Security. Authorized by Oregon statutes, specifically ORS 243.820 to 243.890, the Oregon Deferred Compensation Investment Account Plan provides employees with the opportunity to save and invest a portion of their income on a pre-tax basis. Under this plan, employees have the advantage of contributing to their retirement accounts with pre-tax dollars, which can potentially reduce their taxable income. This option allows participants to maximize their savings and defer paying taxes until they begin withdrawing the funds during their retirement years, potentially leading to significant tax savings over time. A key benefit of the Oregon Deferred Compensation Investment Account Plan is its flexibility. Participants have the freedom to choose how much they contribute to their accounts, within certain annual limits determined by the Internal Revenue Service (IRS). Additionally, participants can select from various investment options to suit their risk tolerance and financial goals. The plan offers diversified investment options, ranging from conservative to aggressive strategies, including mutual funds, target-date funds, and fixed-income options. One type of the Oregon Deferred Compensation Investment Account Plan is the Traditional 457(b) plan. It allows public employees to contribute a portion of their salary on a pre-tax basis, reducing their current taxable income. The contributions and any investment earnings grow tax-deferred until the participant withdraws the funds during retirement. Another type is the Roth 457(b) plan, which enables participants to contribute after-tax dollars into their retirement accounts. Withdrawals made during retirement from the Roth account are tax-free, provided certain conditions are met. This option is particularly advantageous for individuals who expect to be in a higher tax bracket during retirement or those seeking tax diversification in their retirement income sources. The Oregon Deferred Compensation Investment Account Plan also provides access to professional advice and educational resources. Participants can consult with experienced financial advisors who can help them develop personalized investment strategies aligned with their retirement goals. Regular educational seminars and online resources aim to increase participants' financial knowledge and improve their awareness of retirement planning best practices. In conclusion, the Oregon Deferred Compensation Investment Account Plan offers public employees in Oregon a valuable opportunity to save for retirement on a tax-advantaged basis. With the flexibility to choose from different contribution options and investment strategies, participants can tailor their retirement savings to their individual financial needs and objectives. Whether they opt for the Traditional 457(b) plan or the Roth 457(b) plan, the goal remains the same — to build a secure and comfortable retirement future.

Oregon Deferred Compensation Investment Account Plan is a retirement savings program offered to Oregon public employees, which helps them set aside funds for their post-employment years. This plan is designed to supplement other retirement income sources, such as pension plans and Social Security. Authorized by Oregon statutes, specifically ORS 243.820 to 243.890, the Oregon Deferred Compensation Investment Account Plan provides employees with the opportunity to save and invest a portion of their income on a pre-tax basis. Under this plan, employees have the advantage of contributing to their retirement accounts with pre-tax dollars, which can potentially reduce their taxable income. This option allows participants to maximize their savings and defer paying taxes until they begin withdrawing the funds during their retirement years, potentially leading to significant tax savings over time. A key benefit of the Oregon Deferred Compensation Investment Account Plan is its flexibility. Participants have the freedom to choose how much they contribute to their accounts, within certain annual limits determined by the Internal Revenue Service (IRS). Additionally, participants can select from various investment options to suit their risk tolerance and financial goals. The plan offers diversified investment options, ranging from conservative to aggressive strategies, including mutual funds, target-date funds, and fixed-income options. One type of the Oregon Deferred Compensation Investment Account Plan is the Traditional 457(b) plan. It allows public employees to contribute a portion of their salary on a pre-tax basis, reducing their current taxable income. The contributions and any investment earnings grow tax-deferred until the participant withdraws the funds during retirement. Another type is the Roth 457(b) plan, which enables participants to contribute after-tax dollars into their retirement accounts. Withdrawals made during retirement from the Roth account are tax-free, provided certain conditions are met. This option is particularly advantageous for individuals who expect to be in a higher tax bracket during retirement or those seeking tax diversification in their retirement income sources. The Oregon Deferred Compensation Investment Account Plan also provides access to professional advice and educational resources. Participants can consult with experienced financial advisors who can help them develop personalized investment strategies aligned with their retirement goals. Regular educational seminars and online resources aim to increase participants' financial knowledge and improve their awareness of retirement planning best practices. In conclusion, the Oregon Deferred Compensation Investment Account Plan offers public employees in Oregon a valuable opportunity to save for retirement on a tax-advantaged basis. With the flexibility to choose from different contribution options and investment strategies, participants can tailor their retirement savings to their individual financial needs and objectives. Whether they opt for the Traditional 457(b) plan or the Roth 457(b) plan, the goal remains the same — to build a secure and comfortable retirement future.