Overview of Plan C
Time to Focus on Your Future
- What is Plan C?
It is an optional, supplemental retirement plan for Plan B participants, which allows you to contribute to a tax-deferred retirement plan with the university matching a portion of your contribution.
- How much does Case contribute?
The university will match 50 percent of your contribution, on (up to) the first 4 percent of your salary. For example, let's say your salary is $2,000 per month. If you invest $100 (or 5 percent) of your pay, the University will match 50 percent of $80 (4 percent of contributed salary), contributing $40. A total of $140 will go into your supplemental retirement account each month.
- How will it grow?
The interest and dividends you earn on your Plan C retirement contribution will grow tax-deferred until your retirement. Since all your earnings are reinvested without taxation, your savings will compound faster. You choose the mix of investments in your Plan C account, and the growth of your account will depend upon the type of funds you choose.
- How do I begin?
You will need both a carrier application and a Salary Reduction Agreement form. The forms are available in the Benefits office on the second floor of Crawford Hall. Or you can use this form [pdf] to type in your information, print, and return the completed forms to Benefits Administration.
- What if I already have a supplemental retirement account?
You must still enroll in Plan C to receive the university match.
- How long do I have to work for the university before I am able to participate in Plan C
As a benefits eligible employee, you may begin participation at any time during the calendar year.
- When I terminate my employment with the university, what happens to the money I have in Plan C
You may leave your funds in the account, roll them over to an individual retirement account (IRA) or cash out the account anytime after termination (cash withdrawals may incur penalties).
- Where can I invest?
Here is a table according to the characterization provided by the fund companies.
- How much can I contribute to my Plan C account
The Internal Revenue Service has strict guidelines regarding the amount you are allowed to contribute. These guidelines are called the Maximum Exclusion Allowance (MEA). Read the Frequently Answered Questions about MEA's.
- Why should I use Plan C?
In the world of investment opportunities, there are several reasons why you should open a Plan C account.
- Deferred taxes. Your Plan C account contributions use pre-tax dollars.
- Contributions are convenient. Payroll reduction is automatic. You don't need to remember to write a check. You can start immediately.
- You're in control. Match your investment goals to a wide range of investment choices.
- University match. Remember the university helps you to contribute to your retirement.
