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  • Help achieve retirement income goals.
  • Take advantage of your total compensation package—employer matching dollars... you can possibly be entitled to. Click herePDF opens in new window to see what your employer offers.
  • Have the potential to retire at the age you choose.
Remember: Small contribution increases today may potentially make a big difference in your retirement income tomorrow.

THE IMPACT OF SAVING MORE

You save per month $25 $100 $200 $300
10 years $4,327 $17,308 $34,617 $51,925
15 years $7,924 $31,696 $63,392 $95,089
20 years $13,023 $52,093 $104,185 $156,278
30 years $30,499 $121,997 $243,994 $365,991
Assumes a 7 percent annual return compounded annually. The compounding concept is hypothetical and for illustrative purposes only and is not intended to represent performance of any specific investment, which may fluctuate. No taxes are considered in the calculations; generally withdrawals are taxable at ordinary rates. It is possible to lose money by investing in securities.

THESE ARE THE WAYS YOU CAN CONTRIBUTE TO YOUR PLAN ACCOUNT

—AND YOUR EMPLOYER MAY CONTRIBUTE ON YOUR BEHALF, AS WELL:
TYPES OF CONTRIBUTIONS
Traditional Pre-Tax Contributions Roth After-Tax Contributions** Employer Contributions Special “One-Time” Contributions
  • Reduce taxable income
  • Grows tax deferred
  • Withdrawals are taxable
  • Does not reduce taxable income
  • Grows tax-free
  • Qualifed distributions are federal income tax free*
  • You can contribute additional money related to:
    • longevity payments
    • final payouts of unused vacation
    • bonus leave

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*Assumes 7 percent hypothetical rate of return for a portfolio that includes monthly investments and a hypothetical 7 percent rate of return applied to annual interest compounded monthly.

**See plan information regarding limitations on withdrawals from your account. For the NC 401(k) Plan, a distribution from a Roth account is “qualified” to be tax-free if the first Roth contribution remains in the account for at least five tax years AND: a) you are 59½ or older, or b) you have separated from service due to a tax-free disability, retirement, or death. If your withdrawal does not meet these conditions, then the Roth earnings—but not the Roth contributions—may be subject to state and federal income taxes. For the NC 457 Plan, the IRS rules define what is considered a “qualified” distribution from a Roth account in order to be tax-free. This means you can withdraw money from your NC 457 Roth account tax-free once you meet the following criteria: The first Roth contribution to your account must remain in your account at least five tax years AND a) you have separated from service and are 59½ or older, or b) you have separated from service due to a disability retirement, or c) you are still working and are at least 70½.

This information has been provided for your benefit and is not intended or designed to be advice. Prudential is not a tax advisor.

Amounts withdrawn are subject to income taxes. Prudential Financial and its affiliates do not provide tax or legal advice for which you should consult your qualified professional.