SALARY REDUCTION §403(b) PROGRAMS

Available to public schools, churches, hospitals and other non-profit organizations qualified under §501(c)(3), salary reduction §403(b) plans are funded exclusively with employee contributions.

Traditional §403(b) accounts* can provide your employees with immediate tax savings. Participants make contributions pre-tax, thus reducing their taxable income, and their accounts grow on a deferred basis. Income taxes are due upon distribution.

Since Roth §403(b) accounts* are funded with after-tax dollars, withdrawals are income tax-free, as long as the investments have been in the account for five consecutive years.

Not only are §403(b) plans a great tool for helping employees plan for their retirement, they are also a terrific benefit that employers can offer to help retain loyal employees and reward them for the service they provide. The investment options available in a §403(b) account are fixed annuities, variable annuities and mutual funds.

*Distributions prior to age 59 1/2 may be subject to a 10% IRS penalty in addition to ordinary income taxes.