Yes, the city does offer a tax-exempt savings benefits known as a government 457(b) deferred compensation plan. These plans accept payroll-deducted contributions for participant-directed investing and are intended to help public employees like you meet long-term objectives, such as generating retirement income. Acts similar to a 401(k) where the deduction reduces the gross wages, so less federal and state tax is taken. Various investment options are available with each plan. It is tax deferred until the employee starts receiving money from the plan.
Three companies are currently available to choose from:
Mass Mutual Life Insurance
Ohio Public Employees Deferred Plan
(Deductions are made every pay, 26 pays)
The maximum allowed per year is as follows (for 2016):
Normal Age 50
Withdrawal of money from the plan while still employed by the city is limited to extreme financial emergencies as defined by IRS code. (There is a loan option available from the Mass Mutual plan.)
Contact Lisa Benedetti at 440-442-2626 x204 for contact information for any of the above listed companies.