Chicago Illinois Supplemental Retirement Plan

• Category: Corporations - Public - Retirement
• State: Multi-State
• City: Chicago
• 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 Chicago Illinois Supplemental Retirement Plan is a government-sponsored retirement program available to employees in the city of Chicago, Illinois. It is designed to supplement the retirement benefits provided by the mandatory pension plans offered by the various city agencies and departments. The Chicago Illinois Supplemental Retirement Plan helps employees build additional retirement savings through voluntary contributions deducted from their paycheck. These contributions are tax-deferred, allowing participants to potentially lower their current taxable income while saving for their retirement years. One type of Chicago Illinois Supplemental Retirement Plan available is the 457(b) plan. This plan is specifically designed for government employees, including city workers, teachers, police officers, and firefighters. The 457(b) plan allows participants to contribute a portion of their salary pre-tax, thereby reducing their taxable income. The contributions grow tax-deferred until withdrawn during retirement, potentially providing employees with substantial savings when they retire. Another type of Chicago Illinois Supplemental Retirement Plan is the Deferred Compensation Plan, also known as the 401(k) plan. This plan is available to individuals employed by non-profit organizations and government agencies, including the city of Chicago. Similar to the 457(b) plan, the Deferred Compensation Plan allows employees to contribute a portion of their salary pre-tax, helping them save for retirement. The plan offers a range of investment options, allowing participants to tailor their investments based on their risk tolerance and retirement goals. The Chicago Illinois Supplemental Retirement Plan offers various benefits to participants. Firstly, the plan provides an opportunity for employees to accumulate additional retirement savings beyond their mandatory pension plans. These additional savings can help ensure a more financially secure retirement. Secondly, the plan offers tax advantages. Contributions made to the plan are tax-deferred, meaning that participants do not pay taxes on the money they contribute until they withdraw it during retirement. This can potentially reduce participants' taxable income during their working years and allow their savings to grow more quickly. Furthermore, the Chicago Illinois Supplemental Retirement Plan offers flexibility. Participants can choose how much they want to contribute to the plan, up to certain IRS-specified limits. They also have the ability to change their investment options based on their changing financial situations and risk tolerance. Overall, the Chicago Illinois Supplemental Retirement Plan is a voluntary retirement program that allows employees in the city of Chicago to supplement their mandatory pension benefits by contributing pre-tax income towards their retirement savings. With options such as the 457(b) plan and the Deferred Compensation Plan, employees have the opportunity to customize their savings strategy and work towards a more secure financial future.

Chicago Illinois Supplemental Retirement Plan is a government-sponsored retirement program available to employees in the city of Chicago, Illinois. It is designed to supplement the retirement benefits provided by the mandatory pension plans offered by the various city agencies and departments. The Chicago Illinois Supplemental Retirement Plan helps employees build additional retirement savings through voluntary contributions deducted from their paycheck. These contributions are tax-deferred, allowing participants to potentially lower their current taxable income while saving for their retirement years. One type of Chicago Illinois Supplemental Retirement Plan available is the 457(b) plan. This plan is specifically designed for government employees, including city workers, teachers, police officers, and firefighters. The 457(b) plan allows participants to contribute a portion of their salary pre-tax, thereby reducing their taxable income. The contributions grow tax-deferred until withdrawn during retirement, potentially providing employees with substantial savings when they retire. Another type of Chicago Illinois Supplemental Retirement Plan is the Deferred Compensation Plan, also known as the 401(k) plan. This plan is available to individuals employed by non-profit organizations and government agencies, including the city of Chicago. Similar to the 457(b) plan, the Deferred Compensation Plan allows employees to contribute a portion of their salary pre-tax, helping them save for retirement. The plan offers a range of investment options, allowing participants to tailor their investments based on their risk tolerance and retirement goals. The Chicago Illinois Supplemental Retirement Plan offers various benefits to participants. Firstly, the plan provides an opportunity for employees to accumulate additional retirement savings beyond their mandatory pension plans. These additional savings can help ensure a more financially secure retirement. Secondly, the plan offers tax advantages. Contributions made to the plan are tax-deferred, meaning that participants do not pay taxes on the money they contribute until they withdraw it during retirement. This can potentially reduce participants' taxable income during their working years and allow their savings to grow more quickly. Furthermore, the Chicago Illinois Supplemental Retirement Plan offers flexibility. Participants can choose how much they want to contribute to the plan, up to certain IRS-specified limits. They also have the ability to change their investment options based on their changing financial situations and risk tolerance. Overall, the Chicago Illinois Supplemental Retirement Plan is a voluntary retirement program that allows employees in the city of Chicago to supplement their mandatory pension benefits by contributing pre-tax income towards their retirement savings. With options such as the 457(b) plan and the Deferred Compensation Plan, employees have the opportunity to customize their savings strategy and work towards a more secure financial future.