The Retirement Investors' Club (RIC) (deferred compensation) 457/401(a) program is an employer-sponsored voluntary retirement savings program for employees of the State of Iowa. Your contributions to the RIC 457, along with the employer matching contributions to the RIC 401a, are designed to help supplement your IPERS pension and social security benefits at retirement. Contributions are made through automatic payroll deductions.
You may choose to contribute on a pretax and/or post-tax (Roth) basis (457 Roth Summary). Give yourself more reasons to look forward to retirement!
New Workday Terminology
- Retirement Savings refers to the employer-sponsored voluntary retirement savings benefit for State employees. This is not IPERS.
- Benefit Plans for the 457 plan refer to the multiple options that describe participant elections for the following: RIC Provider, how the deduction will be taxed, and the payroll frequency.
- Percentage of Pay is based on the percent of gross salary you elect to deduct. The percent you choose will be deducted from each paycheck in the frequency you elect.
- Pretax Deductions are not taxed when invested. This results in a reduction of reported taxable income to the IRS by the amount saved to RIC in the tax year. Taxes are taken when withdrawn.
- Roth (post-tax) Deductions are taxed before being invested. Earnings are tax-free if qualified.
- Payroll Frequency options include all paychecks in a year, just the 1st and 2nd paychecks of each month, or only 1 paycheck each month (participant elects 1st or 2nd paycheck).
State of Iowa Employees
RIC overview video
RIC Program Summary
IRS 457 Contribution Limits