ICMA-RC manages 401(k) and 457 retirement plans for public sector employees and employers, according to its website. ICMA-RC has several investment options including stock funds, bonds, global stock and real estate securities. It also provides a guaranteed lifetime income and asset location as part of its retirement plans.Continue Reading
A 401(k) retirement plan allows members to save money and invest it for retirement purposes, states ICMA-RC. The savings and investments in this plan come with tax benefits. The value of an account depends on the contributions and performance of the investment over time. This plan also allows employers to match an employee’s contribution. The member decides on his investment options. The member can withdraw from the account after employment ends. This plan also allows the member to withdraw contributions due to hardship or after reaching age 59 1/2 years.
Contributions to the 457 plan come from a member’s gross income, reports Jeanne Sahadi for CNNMoney. This deduction reduces the member’s taxable income. The contributions to the plan grow tax-deferred until the time of withdrawal, at which point the IRS considers it income. A member can contribute up to 25 percent of his gross annual income and can only roll over money in the 457 plan to another 457 plan. Rules do not allow a member to roll this plan into a 401(k) or an IRA plan.Learn more about Financial Planning