Delta Tri-Angle 2016 Issue 2 - Page 15

2016 TRANSPORTATION CONSTRUCTION COALITION LEGISLATIVE FLY-IN Three hundred members of the construction industry descended on Washington, DC in early May to participate in the Transportation Construction Coalition (TCC) Legislative Fly-In. The TCC, a partnership of 31 national associations and construction unions, was established in 1996 to focus on the federal budget and surface transportation funding. The first day consisted of talks from industry associations, including the National Asphalt Pavement Association (NAPA), the Associated General Contractors of America (AGC), the American Association of State Highway and Transportation Officials (AASHTO), and the American Road and Transportation Builders Association (ARTBA). Several legislators took the time from their busy schedules to address the crowd, as well, including Congressman Sam Graves (R-MO), Chairman of the House Transportation and Infrastructure Committee on Highways and Transit. Congressman GREAT NEWS! INTRODUCING ROTH IRA The Colas retirement savings plans introduced three new features: Roth after-tax contributions, Roth “roll-in” and, for certain employees, Roth in-plan conversions. These options can offer you greater tax flexibility and a way to get tax-free distributions from your account. WHAT’S A ROTH CONTRIBUTION? A Roth contribution is simply another way to save money in your retirement plan. Unlike traditional pretax contributions, Roth contributions come from your paycheck after taxes are taken out. While both types of contributions can grow tax-deferred, you won’t owe any federal tax on Roth withdrawals if you meet certain requirements. You can choose to contribute traditional pretax dollars, Roth after-tax dollars or both. WHAT’S A ROTH ROLL-IN? You can consolidate Roth after-tax savings within your Colas account by rolling in, or transferring, assets you hold in outside Roth 401 (k)s or Roth IRAs. Consolidation could  Graves emphasized the need to repair, maintain and improve our transportation system and will explore every option to provide the necessary funding. The second day consisted of visits with federal legislators. Dale Williams, Executive Director of the Missouri Asphalt Pavement Association (MAPA) and Don Rosenbarger, Vice President of the Delta Companies Inc., met with eight Missouri legislators, or their designees. The message conveyed to the legislators was simple and direct: “Thanks” for the “yes” vote on the FAST Act; however, the “Job isn’t done!” The Fixing America’s Surface Transportation (FAST) Act was signed into law on December 4, 2015. The FAST Act funds surface transportation programs at a level of $305 billion through fiscal year 2020. However, the Act does not contain a long-term funding mechanism, nor does it provide a means for the Highway Trust Fund (HTF) to be self-sustaining. It simplify your retirement savings strategy and make it easier to manage your money. The money you transfer in will be treated as an after-tax contribution and can be withdrawn federal tax-free if you qualify. WHAT’S AN IN-PLAN ROTH CONVERSION? You may be able to convert pre-tax balances to Roth after-tax and take advantage of potential federal tax free withdrawals later on.* The caveat: Any money you convert is taxable as regular income in the year you make the conversionand this could mean using money from outside the plan to pay the tax due. Please call Prudential at 877-778-2100 to learn if you qualify for a conversion. Key considerations before converting plan balances to Roth: • You wiII owe income tax on any pretax dollars converted to Roth in the year you make the conversion. If you have not experienced a “distributable event” (such as termination of employment), you will have to pay those taxes due with money from outside the plan. • Because the amount you convert will be added to your taxable income, a Roth conversion could push you into a higher Dale Williams, Executive Director, MAPA; Blaine Luetkemeyer- Representative; Don Rosenbarger VP Operations (Delta) is incumbent upon all of us to consistently send the message to our legislators to finish the job and provide a robust comprehensive long-term transportation funding solution. tax bracket or cause other adverse tax consequences. • You cannot undo a Roth conversion within the plan. Even if the value of your account falls after a conversion, you would owe taxes on the full conversion amount. Due to these and other considerations, you should consult your tax advisor before you take action. HOW DO I MAKE A TAX-FREE WITHDRAWAL? Because you already paid income tax on Roth contributions- new, converted or rolled in-you can withdraw that money 100% federal income tax-free. But ]YY\[[YH^ۈX\[B\X][ۈ]\H8']X[YYY8'N[[\[ H]][]\\]X\]H^YX\Y\[\\۝X][ۋ [Y\ۙHوH[΂([H]HXXYYH NKLK̂([HXYH\XY \Y[YHBBY\[^]B([\X][H]\H]X\YH NLKL[ ܈^\Y[HH\X]XB][ X\\Z[][ۈو[\[ \]Y\[[\[۝\[ۋ\[[X\H HوHYX\[X[HXZHH۝X][ۋ]X[YYY]][X^HHXX]H[[[YH^ ˙[X˘H MB