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People also ask
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What is RSA 1 Alabama?
About RSA-1 RSA-1 is an eligible deferred compensation plan as defined by Section 457 of the Internal Revenue Code of the United States. The plan is authorized by §36-27A-1, et. seq., Code of Alabama 1975.
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What is RSA in retirement?
Retirement Savings Account (RSA) Retirement Savings Account is a retirement plan account opened by an employee and maintained by a Pension Fund Administrator for the purpose of saving towards the employee's retirement.
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What is the difference between Tier 1 and Tier 2 retirement in Alabama?
Tier 1 member: You are eligible to retire at any age with 25 or more years of service or at age 60 with 10 or more years of service. Tier 2 member: You are eligible to retire at age 62 (age 56 for State Police and certified, full-time firefighter and law enforcement officer) with 10 or more years of service.
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What are the changes for tier 2 retirement in Alabama?
* There is now an early retirement option for Tier 2 members after accumulating 30 years of service credit with a 2% reduction for each year from age 62.
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What is the difference between Tier 1 and Tier 2 railroad retirement?
The RRA has two components. Tier 1 is the equivalent of Social Security benefits and Tier 2 is like an employer's pension plan. Social Security Benefits: Payments made under Title II of the Social Security Act. They include old- age, survivors, and disability benefits.
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Is RSA-1 taxable in Alabama?
All RSA-1 distributions are subject to federal income tax. A portion may be subject to Alabama income tax.
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What is the difference between tier 1 and tier 2 RSA in Alabama?
Tier 1 member: You are eligible to retire at any age with 25 or more years of service or at age 60 with 10 or more years of service. Tier 2 member: You are eligible to retire at age 62 (age 56 for State Police and certified, full-time firefighter and law enforcement officer) with 10 or more years of service.
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What is RSA-1 in Alabama?
RSA-1 is a voluntary plan that allows you to save and invest extra tax-deferred or after tax money. Not only can you defer taxes immediately, but your contributions and any earnings will also grow on a tax-deferred basis.
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