NEWRY — At the Jan. 18 Newry Board of Selectmen meeting, a new 457 retirement plan was discussed. It is pre-tax which saves the town money.
“Currently the town offers a SIMPLE IRA (Savings Incentive Match Plan for Employees) product, it was set up in 2006, and it is a post-tax contribution, explained Amy Bernard, Newry town administrator. “When employees go to take funds out, those deductions will be taxed again, it’s double tax situation for the employees, [I am] not sure if it’s just the way it’s set up back in 2006. To find out we would need to consult a retirement professional. With a 457 plan, it is a pre-tax deduction, it’s set up on Mission Squares website, the town uploads monthly account information, and it pulls the money as soon as you upload the files.”
Mission Square Retirement, the company servicing the product, is more centered around nonprofit retirement plans, Bernard said. The account goes to the individual opposed to separate account.
Selectwoman Mandy Berry made a motion to go with the 457 retirement plan and it was approved unanimously.
In other news, the selectmen agreed upon a date for the annual Town Meeting, which will be May 17 at 6:30 p.m., with coffee and snacks starting at 6 p.m.
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