Optional Supplemental Retirement
Employees who wish to save for retirement other than through the state retirement system may choose to invest in a 401(k) or 457 plan through Prudential. The College does not match any of these contributions, but employees may have their contributions deducted through payroll deduction.
Employees may enroll in these plans at any time, and an assigned representative is available for questions or changes. Contact Matt Dominelli at 704-219-6104 or Matthew.Dominelli@Empower.com for information on each plan.
Additionally, employees may contact a Retirement Education Counselor at 866-627-5267
- NC 401(k) and NC 457 Plans
Go to the Empower website
What is the difference between each plan?401(k) Plan:
The 401(k) Plan is available to both public and private sector employees. 401(k) contributions are taxed when the money is taken out (pre-tax). 401(k) Roth contributions are taxed before the money is put in. Withdrawals before reaching age 59 ½ may be subject to a 10 percent federal tax penalty. Withdrawals after reaching age 59 ½ are allowed without penalty. Deferred Compensation (457) Plan:
The 457 Plan was established by state and local governments and tax-exempt governments and tax-exempt employers. Any full-time or part-time employee is allowed to make salary deferral contributions. 457 contributions are taxed when the money is taken out (pre-tax). 457 Roth contributions are taxed before the money is put in (effective 4/1/11). Money may be withdrawn, without penalty and regardless of age, when the member retires or separates from service. Withdrawals, while employed in the public sector, are not allowed until age 70 ½.
Enrolling in these plans will help you to prepare for a financially secure retirement. Here are some resources to help you better understand the plans and the importance of saving.