Both 401(k) and Deferred Comp (457) Savings Plans are investment programs that employees can utilize to supplement their retirement income. By participating in these plans, employees have the opportunity to build their savings on a pre-tax basis while reducing their current taxable income, or on an after-tax (Roth) basis.
The North Carolina Public Employee Deferred Compensation Plan was adopted by the North Carolina General Assembly in 1978 and the Supplemental Retirement Income Plan of North Carolina (NC 401k) was created in 1984. All members contributing to the Teachers and State Employees Retirement System are eligible to participate in 401(k) and all permanent full-time, temporary, and part-time employees are eligible to participate in Deferred Comp.
For a detailed comparison of the plans, click here. (Note: Although this chart makes reference to an Employer contribution to these plans, please be advised that for State employees, there is no Employer contribution.)
Coordination of 401(k) and Deferred Comp Plans:
401(k) and Deferred Comp contributions do not have to be coordinated. A participant may contribute up to 80% of their salary not to exceed $16,500 in a 401(k) plan or 100% of their salary not to exceed $16,500 in a Deferred Comp plan, regardless of his/her contributions into the other plan. For example, a participant under 50 years of age may be able to defer as much as $33,000 ($16,500 in the 401k and $16,500 in the Deferred Comp Plan) in 2011. At age 50 or older, a participant may contribute an additional $5,500 per plan or a total of $44,000.
If you would like more information on the Deferred Compensation program or the NC 401(k) tax deferred supplemental retirement program, please visit the North Carolina Supplemental Retirement Plans' website at www.ncplans.prudential.com. You can also take advantage of the North Carolina Supplemental Retirement Plans' toll-free phone number by calling 1-866NCPlans (1-866-627-5267).
To enroll in a Supplemental Retirement Plan (401k and/or Deferred Comp), you can go to www.ncplans.prudential.com and complete an enrollment form online. You can also contact your benefits representative at your location or your local Regional Retirement Education Manager with Prudential.
|Prudential Savings Plan Job Aids||Description|
|401k/Deferred Comp One Time Deferral Guide (09/01/11)||A guide that provides information on the process for submitting a One Time Deferral to Prudential for a 401k or Deferred Comp Savings Plan.|
|401k/Deferred Comp Disbursement upon Separation Guide (09/01/11)||A guide that provides information on the process for submitting a Request for Disbursement/Distribution to Prudential for a 401k or Deferred Comp Savings Plan.|
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