It pays to
save through this Plan. Your contributions are taken out of your pay before
federal and California State income taxes are calculated, reducing your current
taxable income. So, you'll have more money in your pocket than if you were
saving the same amount with after-tax dollars.
Consider this example: Sarah earns $2,000 a month in regular
pay and wants to invest $100 a month in the Plan. She's married, lives in
California, and takes one withholding allowance. Let's compare how much she
would save before-tax (through the Savings Plan) and after-tax (at a bank or in
some other savings).
Should you choose to take full advantage of the tax savings available, you
can contribute up to the following personal pre-tax contributions limits
(excluding County matching contributions):
For illustrative purposes only. This hypothetical
illustration assumes a married participant taking one withholding allowance and
accounts for estimated federal, California state, and FICA tax withholding.
Additional limitations that apply to all contributions to
the Savings Plan
In 2003, federal tax law limits personal
contributions, matching contributions and after-tax contributions to the Savings
Plan to the lesser of $40,000 per year or 100% of Compensation, as defined by