Retirement should be a reward for your hard work, and planning is key to achieving a comfortable future. Experts recommend replacing 70% to 80% of your working income for a comfortable retirement, which requires diligent saving.
457 Plan
The City offers a 457(b) deferred compensation Plan for eligible employees. You can have part of your salary withheld and invested for future payment, which is not taxed until distribution. An after-tax Roth option is also available, where taxes are paid upfront.
457 Roth Option
The 457 Roth option lets you contribute after-tax dollars, meaning you pay taxes now. The benefit is that your withdrawals during retirement are tax-free, provided certain conditions are met.
You can go to www.lincolnfinancial.com to begin a new enrollment, update your beneficiary or change your salary deferral amount, either by percentage or a flat dollar amount. We will receive a report each month detailing the actions that have taken place during the month so we can ensure they are entered in the system for payroll.
Lincoln Contact
Account Representative:
Aiko Luking
(971) 484-2663
Lincoln Financial Services
www.lincolnfinancial.com
401(k) Plan
The City also offers a 401(k) plan for eligible employees which allows you to save for retirement with pre-tax contributions, which can grow tax-deferred until withdrawal. Taxes are paid upon withdrawal. The City will contribute 6.2% with your contribution of at least a 1% or more (pretax option only).
4o1(k) Roth Option
The 401k Roth option lets you contribute after-tax dollars, meaning you pay taxes now. The benefit is that your withdrawals during retirement are tax-free, provided certain conditions are met.
401k Contact
PERSI Choice 401k
Bruce Singkhaophet
Direct (208) 345-1120
bruce.singkhaophet@empower.com
Contribution Limits
- 457 Plan & Roth: Contribute a combined amount up to $24,500 of your compensation. Employees aged 50+ can add an extra $8,000 per year and employees between 61-63 can add an extra $11,250.
- 401(k) Plan & Roth: Contribute up to $24,500 of your compensation. Employees aged 50+ can add an extra $8,000 per year and employees between 61-63 can add an extra $11,250.
The maximum contribution limits are set annually by the IRS. By utilizing these plans, you can build a solid foundation for your retirement, ensuring financial stability in your later years.
Retirement Minute
Interests, concerns or learn something new. Check back often for new topics.
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