Hillsborough Florida Approval of deferred compensation investment account plan

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• County: Hillsborough
• Control #: US-CC-20-135-NE
• Format: Word; Rich Text

Description

This is a multi-state form covering the subject matter of the title. Hillsborough County, located in Florida, approves deferred compensation investment account plans for its employees. This plan allows employees to set aside a portion of their salary and invest it for future use, typically during retirement. The approval of such plans provides employees with an additional option to save for their golden years and enjoy the potential growth of their investments. The Hillsborough County Approval of Deferred Compensation Investment Account Plan offers several types of investment accounts depending on the employee's preferences and risk tolerance. These types may include: 1. Traditional Deferred Compensation: This plan allows employees to defer a portion of their pre-tax income into investment accounts, which can potentially grow tax-deferred until withdrawal during retirement. By deferring income, employees may lower their current taxable income. 2. Roth Deferred Compensation: This type of plan allows employees to contribute a portion of their after-tax income into investment accounts. Although these contributions do not provide an immediate tax break, any future qualified withdrawals will be tax-free. Roth accounts can be an attractive option for those who anticipate being in a higher tax bracket during retirement. 3. Catch-Up Provision: This feature is available for employees nearing retirement age who have consistently contributed to their deferred compensation plan. It allows them to make additional catch-up contributions, over and above the regular contribution limit, to accelerate their savings as retirement approaches. 4. Investment Options: Within the Hillsborough County Approval of Deferred Compensation Investment Account Plan, employees typically have access to a range of investment options. These could include mutual funds, stocks, bonds, target-date funds, and exchange-traded funds (ETFs). Employees are encouraged to diversify their investments according to their risk appetite and long-term goals. 5. Vesting Schedule: The plan may have a vesting period, during which the employer's contributions gradually become the employee's property. This provision encourages long-term commitment and incentivizes employees to remain with the organization. 6. Loan Provision: Some deferred compensation plans may include a loan provision, allowing employees to borrow against their account balance for certain financial needs, such as purchasing a home or covering unexpected expenses. This can provide flexibility and convenience for plan participants. Overall, the Hillsborough County Approval of Deferred Compensation Investment Account Plan aims to support employees in building a secure financial future by offering a variety of investment options tailored to their needs. Employees are advised to consult with financial advisors or plan administrators to determine the most suitable investment strategy for their individual circumstances.

Hillsborough County, located in Florida, approves deferred compensation investment account plans for its employees. This plan allows employees to set aside a portion of their salary and invest it for future use, typically during retirement. The approval of such plans provides employees with an additional option to save for their golden years and enjoy the potential growth of their investments. The Hillsborough County Approval of Deferred Compensation Investment Account Plan offers several types of investment accounts depending on the employee's preferences and risk tolerance. These types may include: 1. Traditional Deferred Compensation: This plan allows employees to defer a portion of their pre-tax income into investment accounts, which can potentially grow tax-deferred until withdrawal during retirement. By deferring income, employees may lower their current taxable income. 2. Roth Deferred Compensation: This type of plan allows employees to contribute a portion of their after-tax income into investment accounts. Although these contributions do not provide an immediate tax break, any future qualified withdrawals will be tax-free. Roth accounts can be an attractive option for those who anticipate being in a higher tax bracket during retirement. 3. Catch-Up Provision: This feature is available for employees nearing retirement age who have consistently contributed to their deferred compensation plan. It allows them to make additional catch-up contributions, over and above the regular contribution limit, to accelerate their savings as retirement approaches. 4. Investment Options: Within the Hillsborough County Approval of Deferred Compensation Investment Account Plan, employees typically have access to a range of investment options. These could include mutual funds, stocks, bonds, target-date funds, and exchange-traded funds (ETFs). Employees are encouraged to diversify their investments according to their risk appetite and long-term goals. 5. Vesting Schedule: The plan may have a vesting period, during which the employer's contributions gradually become the employee's property. This provision encourages long-term commitment and incentivizes employees to remain with the organization. 6. Loan Provision: Some deferred compensation plans may include a loan provision, allowing employees to borrow against their account balance for certain financial needs, such as purchasing a home or covering unexpected expenses. This can provide flexibility and convenience for plan participants. Overall, the Hillsborough County Approval of Deferred Compensation Investment Account Plan aims to support employees in building a secure financial future by offering a variety of investment options tailored to their needs. Employees are advised to consult with financial advisors or plan administrators to determine the most suitable investment strategy for their individual circumstances.