Chicago Illinois Employees Savings Thrift Plan

• Category: Corporations - Public - Employees
• State: Multi-State
• City: Chicago
• Control #: US-CC-22-118E
• Format: Word; Rich Text

Description

22-118E 22-118E . . . Employee Savings Thrift Plan under which three types of contributions can be made: (a) those permitted under a qualified Cash Or Deferred Arrangement ("CODA") under Section 401(k) of Internal Revenue Code, (b) those made by participating companies matching 40% of CODA contributions, and (c) additional voluntary employee contributions made by participants who elect maximum CODA contribution and wish to save additional amounts out of after-tax dollars The Chicago Illinois Employees Savings Thrift Plan is a retirement savings plan available to employees of the City of Chicago in Illinois, United States. It is designed to help employees save for their retirement by providing them with various investment options and tax advantages. This employer-sponsored plan allows participants to contribute a portion of their salary to be invested for their future. The Chicago Illinois Employees Savings Thrift Plan offers different investment options to suit individual preferences and risk tolerance. Participants can choose from a range of funds, such as stock funds, bond funds, and money market funds, to build their investment portfolio. These funds are managed by professional investment managers to provide growth potential and diversification. Contributions to the Chicago Illinois Employees Savings Thrift Plan are made on a pre-tax basis, meaning that the amount is deducted from the employee's salary before income taxes are applied. This provides an immediate tax advantage as the contributions reduce the participant's taxable income. One notable sub-plan of the Chicago Illinois Employees Savings Thrift Plan is the Roth 401(k) option. This allows employees to make after-tax contributions to their retirement account. While these contributions do not offer any immediate tax benefits, all earnings grow tax-free, and withdrawals made during retirement are tax-free as well, provided certain conditions are met. Participants in the Chicago Illinois Employees Savings Thrift Plan can also take advantage of employer matching contributions. The city provides a matching contribution based on a specific percentage of the employee's contribution, up to a certain limit. This matching contribution serves as an additional benefit and encourages employees to maximize their savings. To ensure participants make informed investment decisions, the Chicago Illinois Employees Savings Thrift Plan provides access to educational resources and tools. These resources assist employees in understanding their investment options, setting retirement goals, and making appropriate investment choices based on their financial needs and objectives. In conclusion, the Chicago Illinois Employees Savings Thrift Plan offers employees of the City of Chicago an opportunity to save for retirement through a diverse range of investment options and valuable tax advantages. With additional benefits such as employer matching contributions and educational resources, this retirement savings plan aims to help employees secure a financially sound future.

The Chicago Illinois Employees Savings Thrift Plan is a retirement savings plan available to employees of the City of Chicago in Illinois, United States. It is designed to help employees save for their retirement by providing them with various investment options and tax advantages. This employer-sponsored plan allows participants to contribute a portion of their salary to be invested for their future. The Chicago Illinois Employees Savings Thrift Plan offers different investment options to suit individual preferences and risk tolerance. Participants can choose from a range of funds, such as stock funds, bond funds, and money market funds, to build their investment portfolio. These funds are managed by professional investment managers to provide growth potential and diversification. Contributions to the Chicago Illinois Employees Savings Thrift Plan are made on a pre-tax basis, meaning that the amount is deducted from the employee's salary before income taxes are applied. This provides an immediate tax advantage as the contributions reduce the participant's taxable income. One notable sub-plan of the Chicago Illinois Employees Savings Thrift Plan is the Roth 401(k) option. This allows employees to make after-tax contributions to their retirement account. While these contributions do not offer any immediate tax benefits, all earnings grow tax-free, and withdrawals made during retirement are tax-free as well, provided certain conditions are met. Participants in the Chicago Illinois Employees Savings Thrift Plan can also take advantage of employer matching contributions. The city provides a matching contribution based on a specific percentage of the employee's contribution, up to a certain limit. This matching contribution serves as an additional benefit and encourages employees to maximize their savings. To ensure participants make informed investment decisions, the Chicago Illinois Employees Savings Thrift Plan provides access to educational resources and tools. These resources assist employees in understanding their investment options, setting retirement goals, and making appropriate investment choices based on their financial needs and objectives. In conclusion, the Chicago Illinois Employees Savings Thrift Plan offers employees of the City of Chicago an opportunity to save for retirement through a diverse range of investment options and valuable tax advantages. With additional benefits such as employer matching contributions and educational resources, this retirement savings plan aims to help employees secure a financially sound future.