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ADOBE ACROBAT READER |
 IRA Payroll Deductions | ||
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|  What is the Individual Retirement Account (IRA) Payroll Deduction Program? Who is eligible to join the IRA Payroll Deduction Program? Are IRA contributions tax-deductible? Is there a maximum amount I can contribute to my IRA? Can I determine the deduction amount? How do I enroll in the IRA Payroll Deduction Program? How do I change the amount of my IRA deduction? How is a payroll deduction to an IRA account reflected in my taxes? Where can I find out more about IRAs? 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? The maximum contribution is $5,000 in the years 2008-2009. However, if you will be older by the end of the year, you can contribute an extra $1000, for a $6,000 total contribution limit. 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. (How do you view a pdf file?) Your bank or financial institution must complete part of the form. 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, complete a new IRA Payroll Deduction Enrollment with your bank or financial institution and submit it to your agency's IRA Coordinator. (How do you view a pdf file?) You may change the amount of the payroll deduction or stop the deduction at any time. How is a payroll deduction to an IRA account reflected in my taxes? Contributions towards IRAs are post-tax. Therefore, this deduction will not appear on your W-2 Wage and Tax Statement. Where can I find out more about IRAs? For more information, contact your bank or other financial institution. |  |
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