What is the Individual Retirement Account (IRA) Payroll Deduction Program?
The purpose of the IRA Payroll Deduction Program is to provide a service to City employees who wish to maintain IRAs through the convenience of automated payments deposited into their IRA accounts. City of New York employees will make the arrangements directly with their own banks or other financial institutions to set up their IRA accounts.
Who is eligible to join the IRA Payroll Deduction Program?
All employees paid by the Payroll Management System (PMS) are eligible to participate including City, Department of Education and the City University of New York.
Are IRA contributions tax-deductible?
Contributions to a traditional IRA may be tax-deductible; earnings and gains on amounts while held in the account are tax-deferred although withdrawals are subject to Federal income tax. This makes the dividends and growth of the investments tax-free for Federal income tax purposes if the requirements are met.
Is there a maximum amount I can contribute to my IRA?
If you are under 50 years of age at the end of 2014: The maximum contribution is $5,500.
If you are 50 years of age or older before 2014: The maximum contribution that can be made is $6,500 or the amount of your taxable compensation for 2014.
Can I determine the deduction amount?
Yes, to see how annual goals work on payday, select the gross annual amount you wish to contribute to your IRA and select your corresponding pay cycle to view your per pay period deduction:
How do I enroll in the IRA Payroll Deduction Program?
Employees wishing to participate in the plan must establish an IRA account by completing an IRA Payroll Deduction Enrollment. Your bank or financial institution must complete part of the form. Enroll in the program by going to NYCAPS Employee Self-Service (ESS) or submit the completed form to your agency’s IRA Coordinator.
How do I change the amount of my IRA deduction?
If you wish to change the amount of your IRA deduction, go to NYCAPS Employee Self-Service (ESS) or submit it to your agency’s IRA Coordinator. You may change the amount of the payroll deduction or stop the deduction at any time.