The South Carolina Deferred Compensation Program (SCDCP) offers 401(k) and 457 savings plans, both of which have a Roth option. These voluntary retirement savings plans can help you supplement your PEBA Retirement Benefits’ pension or your State ORP savings. You can participate in both of these plans. It’s up to you whether you join.
If you participate, you decide how much to have deducted automatically from your pay, tax-deferred for the 401(k) and 457 plans. That amount is put into an account in your name. You decide where to invest your money among the mutual funds and other investment products offered.
The investment earnings on your tax-deferred savings also grows tax-deferred. That means there’s more money to grow in your account, compared with saving and investing with after-tax dollars outside the plans. The result can be greater savings over time, especially when you combine tax deferral with the power of compounding. You don’t pay taxes on your account until you take it out of the plans.
With the Roth option, you can make after-tax contributions today and generally take tax-free withdrawals at retirement. Employees will need to check with their payroll office to find out if this option is available to them.
For more information about the SCDCP, contact Great-West, the Program's record keeper and administrator, at 877-457-6263 or visit the SCDCP's website at http://www.southcarolinadcp.com/.