The City Tech CUNY NYS Tax Deferred Compensation Plan is a valuable benefit for employees. It allows you to contribute a portion of your salary to a tax-deferred account.
The plan is administered by the New York State Office of the State Comptroller.
You can contribute to the plan on a pre-tax basis, which means you won't pay income taxes on the contributions until you withdraw the funds.
The plan offers a range of investment options to help your money grow over time.
Understanding the Plan
The CUNY Voluntary Savings Plan is a great way to save for your future, and it's easy to enroll. You can even watch a video to learn more about the process.
There are resources available to help you understand the plan, including a universal availability notice that you can view as a PDF.
You can also access the CUNY Voluntary Savings Plan in Spanish, making it more accessible to a wider range of people.
The plan offers a retirement program, which is a great way to plan for your golden years.
Benefits and Savings
Contributing to a retirement plan can start as early as possible, and even a small amount can make a big difference by the time you retire.
You can start saving now and make the most of your benefits, especially if your employer offers contribution matching. Many employers offer this benefit, which means they'll match a portion of your contributions.
Contribute as much as you can afford, up to the IRS limit. This will help you maximize your savings and take advantage of compound interest.
Compound interest can work in your favor, as any earnings on your investments get reinvested and can potentially earn even more money.
Here are some key tips to keep in mind:
- Contribute as much as you can afford, up to the IRS limit
- Get the most from any employer matches (if they're available)
- Check your investment mix. Does it still make sense in relation to your age and lifestyle?
Plan Details
City Tech CUNY's NYS Tax Deferred Compensation plan allows employees to contribute a portion of their salary to a tax-deferred account.
The plan offers a range of investment options, including a stable value fund, a money market fund, and a variety of stock and bond funds.
You can contribute up to 85% of your salary to the plan, but you can only contribute up to $13,400 per year.
The plan has a 5-year vesting period, meaning that you must be employed by City Tech CUNY for 5 years to be fully vested in the plan.
You can take a loan from your account balance, but you'll need to repay it within 5 years with interest.
Frequently Asked Questions
Is NYS deferred compensation taxable in NYS?
In New York State, pre-tax deferred compensation is taxable upon distribution, subject to Federal, New York State, and local income taxes. However, qualified Roth distributions are exempt from state income tax.
Is NYS deferred comp a 401k?
No, NYS Deferred Compensation is not a traditional 401(k) plan, but rather a specialized retirement savings plan designed for public employees. It's a unique plan that differs from other defined contribution plans like a 401(k) or 403(b).
Sources
- https://www.ccny.cuny.edu/hr/the-cuny-voluntary-saving-plans
- https://www.tiaa.org/public/tcm/cunyclassified/retirement-benefits/plan-151172
- https://www.tiaa.org/public/tcm/cunyinstructional
- https://www.cuny.edu/financial-aid/tax-benefits-for-higher-education/
- https://www.kbcc.cuny.edu/humanresources/benefits/flexspend.html
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