Wisconsin 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 Wisconsin Supplemental Retirement Plan (WARP) is a comprehensive retirement savings program designed to provide additional income and security to state and local Wisconsin employees during their retirement years. It serves as a supplemental plan to the primary Wisconsin Retirement System (WAS), offering participants the opportunity to save for retirement above and beyond there were benefits. The WARP aims to help employees enhance their retirement savings through voluntary contributions made by both the employees and the employers. By participating in the plan, employees can enjoy the advantages of tax-deferred savings, potential investment growth, and additional retirement benefits. There are two primary types of Wisconsin Supplemental Retirement Plan available for state and local government employees: 1. Wisconsin Deferred Compensation (WDC): WDC is a tax-deferred retirement savings plan that allows employees to set aside a portion of their pre-tax income for retirement. Contributions made to WDC are deducted directly from the employee's paycheck before taxes, thereby reducing their taxable income. Employees can choose from various investment options offered by professional investment firms to grow their savings over time. The funds accumulated in the WDC plan are only taxed when withdrawn during retirement. 2. Wisconsin Roth 457(b) Deferred Compensation: Roth 457(b) is another option available under the Wisconsin Supplemental Retirement Plan. It provides employees with an opportunity to contribute to their retirement savings on an after-tax basis. Unlike the traditional WDC plan, contributions to a Roth 457(b) plan are made with post-tax earnings, meaning employees do not receive any immediate tax benefits. However, the funds grow tax-free over time, and withdrawals during retirement are generally tax-free, subject to specific conditions. Both WDC and Roth 457(b) plans offer employees flexibility and control over their retirement savings decisions. Participants can allocate their contributions among different investment options based on their risk tolerance and financial goals. In summary, the Wisconsin Supplemental Retirement Plan is an advantageous program that empowers Wisconsin state and local government employees to proactively save for retirement beyond there were benefits. Through the WDC and Roth 457(b) plans, employees have the opportunity to accumulate tax-advantaged savings, enjoy potential investment growth, and secure a more financially stable retirement future.

Wisconsin Supplemental Retirement Plan (WARP) is a comprehensive retirement savings program designed to provide additional income and security to state and local Wisconsin employees during their retirement years. It serves as a supplemental plan to the primary Wisconsin Retirement System (WAS), offering participants the opportunity to save for retirement above and beyond there were benefits. The WARP aims to help employees enhance their retirement savings through voluntary contributions made by both the employees and the employers. By participating in the plan, employees can enjoy the advantages of tax-deferred savings, potential investment growth, and additional retirement benefits. There are two primary types of Wisconsin Supplemental Retirement Plan available for state and local government employees: 1. Wisconsin Deferred Compensation (WDC): WDC is a tax-deferred retirement savings plan that allows employees to set aside a portion of their pre-tax income for retirement. Contributions made to WDC are deducted directly from the employee's paycheck before taxes, thereby reducing their taxable income. Employees can choose from various investment options offered by professional investment firms to grow their savings over time. The funds accumulated in the WDC plan are only taxed when withdrawn during retirement. 2. Wisconsin Roth 457(b) Deferred Compensation: Roth 457(b) is another option available under the Wisconsin Supplemental Retirement Plan. It provides employees with an opportunity to contribute to their retirement savings on an after-tax basis. Unlike the traditional WDC plan, contributions to a Roth 457(b) plan are made with post-tax earnings, meaning employees do not receive any immediate tax benefits. However, the funds grow tax-free over time, and withdrawals during retirement are generally tax-free, subject to specific conditions. Both WDC and Roth 457(b) plans offer employees flexibility and control over their retirement savings decisions. Participants can allocate their contributions among different investment options based on their risk tolerance and financial goals. In summary, the Wisconsin Supplemental Retirement Plan is an advantageous program that empowers Wisconsin state and local government employees to proactively save for retirement beyond there were benefits. Through the WDC and Roth 457(b) plans, employees have the opportunity to accumulate tax-advantaged savings, enjoy potential investment growth, and secure a more financially stable retirement future.