The City provides the opportunity for Executive Level employees to enroll in a 401(a) deferred compensation plan. This is a “qualified” retirement plan under Section 401(a) of the Internal Revenue Code. Each eligible participant may “irrevocably” defer a certain dollar amount or percentage of their salary on a pre-tax basis for investment purposes. Eligible plan participants are not taxed on any employer contributions or earnings until they are withdrawn. ICMA-RC currently administers the City’s 401(a) deferred compensation plan.
IRS Section 401(a) Plan Highlights
- Eligible participants have a ONE-TIME opportunity upon appointment or promotion to an Executive level position to enroll in this plan. If declined, an eligible participant CAN NOT enroll at a later date.
- Eligible participants may contribute any dollar amount or percentage of salary to the 401(a) plan up to the maximum allowable contribution. However, participants may NOT change their deferral amount at a later date.
- The current maximum allowable contribution under the IRS is $53,000 per year. The annual maximum allowable contribution is subject to change by the IRS.
The ICMA-RC 401(a) ENROLLMENT guide contains complete details of benefits and exclusions.
The 401(a) plan enrollment package can be found on our
Benefit Forms page.
If you have additional questions regarding the 401(a) deferred compensation plan, please contact ICMA-RC Member Services at (800) 669-7400. Also, the Human Resources Benefits Division is available to answer benefit questions.