In the dynamic financial landscape, securing a comfortable retirement is of paramount importance. The State of Michigan 401k program offers an exceptional opportunity for state employees to proactively plan their financial future. This comprehensive retirement plan provides a range of benefits, empowering you to:
Benefits of a State of Michigan 401k
Benefit | Description |
---|---|
Tax-deferred contributions | Reduce your current taxable income by contributing pre-tax dollars to your 401k. |
Employer matching contributions | The state may contribute a percentage of your salary to your 401k, providing a significant boost to your savings. |
Investment options | Choose from a variety of investment options to diversify your portfolio and maximize your potential returns. |
Tax-free withdrawals in retirement | Withdraw funds from your 401k tax-free once you reach age 59½. |
Plan Eligibility and Contributions
To participate in the State of Michigan 401k, you must be a state employee actively enrolled in the plan. You can contribute up to the annual IRS maximum, which is adjusted each year. In 2023, the contribution limit is $22,500 (plus an additional $7,500 catch-up contribution if you are age 50 or older).
Contribution Limit | Description |
---|---|
Employee contribution limit | Up to $22,500 per year |
Employer matching contribution | Up to 5% of your salary |
Catch-up contribution (age 50+) | Up to $7,500 per year |
Investment Options and Returns
The State of Michigan 401k offers a range of investment options, including:
The historical performance of these investment options has varied. According to a report by the Center for Retirement Research at Boston College, the average annual return for all 401k plans from 2000 to 2020 was 6.7%.
Success Stories
FAQs About State of Michigan 401k
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