Mecklenburg County now offers another exciting way for employees to save for retirement - the NC 401(k) Plan Roth feature.
Roth contributions are made through voluntary payroll deductions just like your traditional 401(k) contributions. However, the Roth 401(k) differs from a traditional 401(k) because contributions are made in after-tax dollars. In other words, taxes are taken from your paycheck before your money is put into the Roth account. By paying the taxes now, this allows your investments to grow and be withdrawn completely income tax free as long as certain conditions are met.
The Roth 401(k) is not a separate retirement savings vehicle -rather it is part of the NC 401(k) Plan. If you are already a member of the Plan, then any Roth contributions you make will only add to your existing account balance. However, for tax purposes, Roth contributions and earnings will be held separately from your pre-tax and rollover balances.
If you are not a member of the NC 401(k) Plan, you may enroll at any time. Keep in mind, Mecklenburg County will match your Plan contributions dollar for dollar up to 5% of your eligible salary. As an example, if you contribute 3%, the County will contribute 3%; if you contribute 5%, the County will contribute 5%; and if you contribute 8%, the County will contribute 5%.
Please note that the County will match your pre-tax contributions, your Roth after-tax contributions, or a combination of the two sources up to a total match of 5%. You may always change your contribution rates at any time.
Current members in the NC 401(k) Plan can begin Roth contributions and/or change current pre-tax contributions simply by logging on to their account at http://www.nc401k.prudential.com/
or by calling a Participant Service representative at R1-866- NC401K1 (1-866-624-0151). If you’re not currently enrolled in the NC 401(k) Plan, please contact the Employee Services Center at R432-6947 (432-myHR) to obtain an enrollment kit. You can also find more information on the NC 401(k) Plan and the Roth Feature at http://www.nc401k.prudential.com/.
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