Virginia 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 The Virginia Supplemental Retirement Plan (HSRP) is a retirement savings program designed to provide additional financial security for employees of Virginia state agencies and higher education institutions. This voluntary and tax-deferred program allows participants to contribute a portion of their salary towards retirement, alongside their primary retirement plan. The HSRP offers participants a range of investment options to suit their individual financial goals and risk tolerance. These options include various mutual funds and target-date funds managed by reputable investment firms. By investing in these funds, participants have an opportunity to grow their retirement savings over time. One of the primary benefits of the HSRP is that contributions are deducted before taxes, reducing the participant's taxable income. This allows individuals to potentially lower their overall tax liability while saving for retirement. However, withdrawals made at retirement are subject to ordinary income taxes. Participants in the HSRP have the flexibility to change their contribution amount or investment selections at any time. This allows them to adapt their retirement savings strategy as their financial circumstances change over the course of their career. It's important to note that the Virginia Supplemental Retirement Plan has various types tailored to the specific needs of different employee groups. These types may include the Virginia 457 Plan, available to state employees and local government employees, and the Virginia 403(b) Plan, which is offered to employees of higher education institutions, public school systems, and certain nonprofits. The Virginia 457 Plan allows participants to contribute a portion of their salary towards retirement on a pre-tax basis. This plan offers flexibility in terms of contribution limits, investment options, and withdrawal options, providing employees with control over their retirement savings. On the other hand, the Virginia 403(b) Plan is specifically designed for employees of higher education institutions, public school systems, and eligible nonprofit organizations. Like the 457 Plan, participants can make pre-tax contributions towards retirement, with various investment options to choose from. Overall, the Virginia Supplemental Retirement Plan, including its different types, offers employees an opportunity to supplement their primary retirement plan and build a secure financial future. By contributing to the plan on a regular basis and making informed investment choices, participants can work towards achieving their retirement goals while enjoying potential tax advantages along the way.

The Virginia Supplemental Retirement Plan (HSRP) is a retirement savings program designed to provide additional financial security for employees of Virginia state agencies and higher education institutions. This voluntary and tax-deferred program allows participants to contribute a portion of their salary towards retirement, alongside their primary retirement plan. The HSRP offers participants a range of investment options to suit their individual financial goals and risk tolerance. These options include various mutual funds and target-date funds managed by reputable investment firms. By investing in these funds, participants have an opportunity to grow their retirement savings over time. One of the primary benefits of the HSRP is that contributions are deducted before taxes, reducing the participant's taxable income. This allows individuals to potentially lower their overall tax liability while saving for retirement. However, withdrawals made at retirement are subject to ordinary income taxes. Participants in the HSRP have the flexibility to change their contribution amount or investment selections at any time. This allows them to adapt their retirement savings strategy as their financial circumstances change over the course of their career. It's important to note that the Virginia Supplemental Retirement Plan has various types tailored to the specific needs of different employee groups. These types may include the Virginia 457 Plan, available to state employees and local government employees, and the Virginia 403(b) Plan, which is offered to employees of higher education institutions, public school systems, and certain nonprofits. The Virginia 457 Plan allows participants to contribute a portion of their salary towards retirement on a pre-tax basis. This plan offers flexibility in terms of contribution limits, investment options, and withdrawal options, providing employees with control over their retirement savings. On the other hand, the Virginia 403(b) Plan is specifically designed for employees of higher education institutions, public school systems, and eligible nonprofit organizations. Like the 457 Plan, participants can make pre-tax contributions towards retirement, with various investment options to choose from. Overall, the Virginia Supplemental Retirement Plan, including its different types, offers employees an opportunity to supplement their primary retirement plan and build a secure financial future. By contributing to the plan on a regular basis and making informed investment choices, participants can work towards achieving their retirement goals while enjoying potential tax advantages along the way.