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NC 401(k) Plan now offering the Roth 401(k) Feature
Author: Prudential Retirement
On June 1, 2006, through the efforts of the North Carolina Department of State Treasurer and Prudential Retirement, the benefits of the North Carolina 401(k) Plan were expanded to include Roth 401(k) features. The Plan, with more than 196,000 members and assets of $3.5 billion, now offers a Roth 401(k) benefit to members of The Supplemental Retirement Income Plan of North Carolina allowing them to further diversify their retirement savings. The new feature combines the characteristics of a traditional retirement savings program with those of a Roth IRA. More specifically, the Roth feature allows members to make some or all 401(k) contributions with after-tax dollars. If these members meet certain requirements down the road, the Roth benefits withdrawn in retirement—including earnings—will not be taxable for federal or North Carolina state income tax purposes. The Supplemental Retirement Income Plan of North Carolina is among the first public plans to offer the new Roth features. The Plan, with its flexible benefits, is available to educators and public employees in North Carolina, and there are no income-level restrictions. In 2006, members can contribute a maximum of $15,000 in pre-tax and Roth contributions and individuals 50 and older may contribute an additional $5,000. For more information on the NC 401(k) Plan and the new Roth feature, call 1- 919-664-7101, or visit www.nc401k.prudential. Securities products and services are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, 14th Floor, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Prudential Retirement is a Prudential Financial business. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. |
