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No premature distribution penalty
– Once you separate from service, §457 account distributions are not subject to the 10% premature penalty that applies to §403(b) plans and IRAs prior to age 59½. |
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Contribute up to twice the normal maximum contribution limit
– You can make contributions to a §457 account in addition to a §403(b). This means you may contribute the maximum dollar amount to your §457 plan and your §403(b) plan in the same year—twice the normal limit if you were to contribute to only one plan! |
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Pre-tax savings1
– By deferring compensation into a §457 account, you realize immediate tax savings on your contributions. Before any taxes are taken out, your paycheck is
reduced by the amount you decide to invest. Therefore your total taxable income is less. |
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Tax-deferred treatment of earnings
– Taxes on any investment earnings in a §457 account are deferred as well. This way, you don’t pay taxes on anything your deferred compensation earns until it is distributed.
While withdrawals are taxed as ordinary income, the impact may be minimized as many investors find themselves in a lower tax bracket at retirement. |
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The power of time
– By making regular contributions to your §457(b) account, you have the potential to develop a sizeable nest egg over the long term. |
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Automatic payroll deductions / Built-in dollar cost averaging2
– The amount you decide to defer each pay period will automatically be withheld from your paycheck and deposited into your retirement account.
Since the amount you contribute is deducted from your paycheck at regular intervals, dollar cost averaging is built in to your investment plan. With dollar cost averaging, you buy more shares when prices
are low and fewer when prices are high. Over time, the average amount paid (average cost) for each share may be less than the average price per share.
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A Variety of Investment Options
– With a Legend §457(b), you may choose from a wide variety of investment options, including a selection of nationally recognized
mutual funds, and you can change your investment mix as your needs change. |
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Catch-up Contributions
– The Retirement Catch-up provision provides for additional contributions for §457(b) plan
participants in the three years immediately preceding the attainment of “normal” retirement age. This deferral allows for up to twice the normal maximum contribution limit.3 |
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Access to Professional Investment Management Services – Through your Legend Group financial advisor, you have the opportunity to participate in Legend Advisory Corporation’s Strategic Asset Management® (SAM®) and SAM® Select services.
These programs were designed to make professional asset allocation techniques, investment selection and ongoing investment management available to individual investors.
SAM® and SAM® Select offer a range of diversified4 portfolio options that are managed by a team of experienced investment professionals. |
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Guidance from a professional Financial Advisor
– Your Legend Advisor is available to help you as you work toward building your financial future. He or she can answer your questions, work with you to develop a viable investment strategy
and assist you in selecting the investment options that may best reflect your needs. Your Advisor can also provide information about your state retirement plan, and offer ongoing guidance
as you work to reach your investment goals. |
Before investing in a mutual fund, consider its investment objectives, risks, charges and expenses carefully. The prospectus, which contains this and other information about the mutual fund, can be obtained by contacting Legend Equities Corporation. Please read the prospectus carefully before you invest or send money.