Middlesex Massachusetts Deferred Compensation Investment Account Plan

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• County: Middlesex
• 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 Middlesex Massachusetts Deferred Compensation Investment Account Plan (MADCAP) is a retirement savings plan specifically designed for employees of Middlesex County, Massachusetts. This investment account allows participants to defer a portion of their salary to be invested for retirement on a pre-tax basis. The MADCAP aims to provide Middlesex County employees with a convenient and tax-efficient way to save for their post-employment years. By contributing a portion of their salary to this plan, employees can lower their taxable income in the present and increase their savings potential for the future. This deferred compensation plan offers several investment options to suit the diverse needs and risk profiles of participants. These options may include individual investment accounts, mutual funds, stocks, bonds, and other investment vehicles. The plan allows employees to select their preferred investment options based on their long-term financial goals and risk tolerance. Participants can contribute a percentage of their salary, up to the annual maximum limit set by the Internal Revenue Service (IRS). As a pre-tax contribution, the amount deferred is not subject to federal income tax, state income tax, or Social Security taxes at the time of deferral. This provides an immediate tax advantage that can help employees reduce their overall tax liability. One significant advantage of the MADCAP is the potential for tax-deferred growth. Any investment gains within the account are not taxed until the funds are withdrawn during retirement. This allows the earnings to compound over time, potentially leading to substantial growth in the account balance. Furthermore, employees have the flexibility to manage their investments, monitor account performance, and make adjustments as needed. They can also access educational resources, tools, and expert guidance to make informed investment decisions. It is important to note that there may be different variations or sub-plans of the MADCAP, such as Roth 457 plans or Roth conversion options. These variations offer participants the opportunity to make after-tax contributions, potentially providing tax-free withdrawals during retirement. In conclusion, the Middlesex Massachusetts Deferred Compensation Investment Account Plan offers Middlesex County employees a valuable retirement savings vehicle. With various investment options, tax advantages, and flexibility, participants can take control of their financial future.

Middlesex Massachusetts Deferred Compensation Investment Account Plan (MADCAP) is a retirement savings plan specifically designed for employees of Middlesex County, Massachusetts. This investment account allows participants to defer a portion of their salary to be invested for retirement on a pre-tax basis. The MADCAP aims to provide Middlesex County employees with a convenient and tax-efficient way to save for their post-employment years. By contributing a portion of their salary to this plan, employees can lower their taxable income in the present and increase their savings potential for the future. This deferred compensation plan offers several investment options to suit the diverse needs and risk profiles of participants. These options may include individual investment accounts, mutual funds, stocks, bonds, and other investment vehicles. The plan allows employees to select their preferred investment options based on their long-term financial goals and risk tolerance. Participants can contribute a percentage of their salary, up to the annual maximum limit set by the Internal Revenue Service (IRS). As a pre-tax contribution, the amount deferred is not subject to federal income tax, state income tax, or Social Security taxes at the time of deferral. This provides an immediate tax advantage that can help employees reduce their overall tax liability. One significant advantage of the MADCAP is the potential for tax-deferred growth. Any investment gains within the account are not taxed until the funds are withdrawn during retirement. This allows the earnings to compound over time, potentially leading to substantial growth in the account balance. Furthermore, employees have the flexibility to manage their investments, monitor account performance, and make adjustments as needed. They can also access educational resources, tools, and expert guidance to make informed investment decisions. It is important to note that there may be different variations or sub-plans of the MADCAP, such as Roth 457 plans or Roth conversion options. These variations offer participants the opportunity to make after-tax contributions, potentially providing tax-free withdrawals during retirement. In conclusion, the Middlesex Massachusetts Deferred Compensation Investment Account Plan offers Middlesex County employees a valuable retirement savings vehicle. With various investment options, tax advantages, and flexibility, participants can take control of their financial future.