Cook Illinois Supplemental Retirement Plan

• Category: Corporations - Public - Retirement
• State: Multi-State
• County: Cook
• 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 The Cook Illinois Supplemental Retirement Plan is a comprehensive retirement savings program designed to provide additional financial security to employees working for Cook Illinois. It is a voluntary plan that allows participants to contribute a portion of their salary towards their retirement needs, giving them the opportunity to accumulate tax-advantaged savings. The plan offers various types of retirement accounts, including a Traditional Individual Retirement Account (IRA), a Roth IRA, and a 401(k) plan. Participants have the flexibility to choose the account that best suits their retirement goals and financial circumstances. Each type of retirement account has its own set of advantages and features. The Traditional IRA allows employees to make pre-tax contributions, meaning that the money contributed is deducted from their taxable income, potentially lowering their overall tax liability. The funds in the account grow tax-deferred until they are withdrawn during retirement. At that time, the distributions are taxed at the participants' ordinary income tax rates. The Roth IRA, on the other hand, operates differently. Contributions to a Roth IRA are made with after-tax dollars, so they do not provide immediate tax benefits. However, the advantage lies in the fact that qualified distributions from a Roth IRA are tax-free. Participants can withdraw their contributions and earnings tax-free during retirement if certain criteria are met. Additionally, Cook Illinois offers a 401(k) plan as part of its supplemental retirement program. This plan allows employees to contribute a portion of their salary on a pre-tax basis, up to certain annual limits set by the Internal Revenue Service (IRS). The contributions are invested in a range of investment options, allowing participants to potentially grow their savings over time. Similar to the Traditional IRA, distributions from a 401(k) plan are taxed at the participants' ordinary income tax rates during retirement. It is important to note that the Cook Illinois Supplemental Retirement Plan is designed to work alongside other retirement savings accounts, such as a primary employer-sponsored retirement plan or Social Security. Participants are encouraged to consult with a financial advisor to determine their optimal retirement savings strategy and to fully understand the rules and regulations governing each type of account within the plan.

The Cook Illinois Supplemental Retirement Plan is a comprehensive retirement savings program designed to provide additional financial security to employees working for Cook Illinois. It is a voluntary plan that allows participants to contribute a portion of their salary towards their retirement needs, giving them the opportunity to accumulate tax-advantaged savings. The plan offers various types of retirement accounts, including a Traditional Individual Retirement Account (IRA), a Roth IRA, and a 401(k) plan. Participants have the flexibility to choose the account that best suits their retirement goals and financial circumstances. Each type of retirement account has its own set of advantages and features. The Traditional IRA allows employees to make pre-tax contributions, meaning that the money contributed is deducted from their taxable income, potentially lowering their overall tax liability. The funds in the account grow tax-deferred until they are withdrawn during retirement. At that time, the distributions are taxed at the participants' ordinary income tax rates. The Roth IRA, on the other hand, operates differently. Contributions to a Roth IRA are made with after-tax dollars, so they do not provide immediate tax benefits. However, the advantage lies in the fact that qualified distributions from a Roth IRA are tax-free. Participants can withdraw their contributions and earnings tax-free during retirement if certain criteria are met. Additionally, Cook Illinois offers a 401(k) plan as part of its supplemental retirement program. This plan allows employees to contribute a portion of their salary on a pre-tax basis, up to certain annual limits set by the Internal Revenue Service (IRS). The contributions are invested in a range of investment options, allowing participants to potentially grow their savings over time. Similar to the Traditional IRA, distributions from a 401(k) plan are taxed at the participants' ordinary income tax rates during retirement. It is important to note that the Cook Illinois Supplemental Retirement Plan is designed to work alongside other retirement savings accounts, such as a primary employer-sponsored retirement plan or Social Security. Participants are encouraged to consult with a financial advisor to determine their optimal retirement savings strategy and to fully understand the rules and regulations governing each type of account within the plan.