Phoenix, Arizona Deferred Compensation Investment Account Plan is a retirement savings program offered to employees of the City of Phoenix, Arizona. It is designed to help employees build their financial future by providing them with a tax-advantaged way to save for retirement. The Phoenix Arizona Deferred Compensation Investment Account Plan allows participants to defer a portion of their salary on a pre-tax basis, meaning that the money is contributed into the account before taxes are withheld. This allows participants to lower their taxable income during the contribution years while potentially growing their investments tax-deferred over time. Participants have the flexibility to choose the investment options that best align with their retirement goals. The plan offers a range of investment options, including mutual funds, stocks, bonds, and target-date funds. These options are carefully selected to provide diversification and cater to different risk tolerance levels. One notable benefit of the Phoenix Arizona Deferred Compensation Investment Account Plan is the employer matching contribution. The City of Phoenix may provide a matching contribution to encourage employees to save for retirement. The match typically follows a set formula, such as a certain percentage of the employee's contribution up to a maximum limit. Furthermore, the plan allows participants to make changes to their contribution elections throughout the year, giving them the ability to adjust their savings strategy based on their changing financial circumstances. Different types of Phoenix Arizona Deferred Compensation Investment Account Plans may include: 1. Traditional Deferred Compensation Plan: This plan allows participants to defer a portion of their salary on a pre-tax basis and invest it in various investment options offered by the plan. 2. Roth Deferred Compensation Plan: In this plan, participants contribute a portion of their salary on an after-tax basis, meaning no immediate tax benefit is received. However, the earnings and withdrawals from the plan may be tax-free in retirement, as long as certain conditions are met. 3. Hybrid Deferred Compensation Plan: This plan combines elements of both traditional and Roth plans. Participants contribute a portion of their salary on a pre-tax basis, receiving the immediate tax benefit, while also having the option to contribute on an after-tax basis for potential tax-free withdrawals in retirement. Overall, the Phoenix Arizona Deferred Compensation Investment Account Plan provides valuable retirement savings opportunities for City of Phoenix employees. By offering flexibility, tax advantages, and potential employer matching contributions, the plan aims to help employees achieve their long-term financial goals while preparing for a secure and comfortable retirement.