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As a premier provider
of 457, 403(b) and 401 plans we’re committed
to providing you with the attention, the tools
and the choices that will help empower and enable
you to live your dreams at retirement.
457 Deferred Compensation
Plans
This employer sponsored retirement savings plan,
usually offered by municipalities and governmental
entities, enables employees to defer a portion
of their current compensation for payment at later
date, generally retirement. Salary deferrals (or
contributions) are voluntary, and are made through
the ease of payroll deduction. Under this plan,
any contributions and earnings accumulate tax-deferred.
Remember, withdrawals are taxed as ordinary income
when they’re made. A 10% federal income
tax penalty may apply to amounts distributed from
your plan, which are attributable to an IRA or
other qualified plan. Early surrenders may also
be subject to a Contingent Deferred Sales Charge
(CDSC).
403(b), 403(b)(7) Arrangements
This employer sponsored plan is available to employees
of certain tax-exempt organizations or public
educational institutions. This voluntary plan
allows employees to defer a portion of their current
compensation for payment to at a later date, generally
retirement. Salary deferrals (or contributions)
are made through the ease of payroll deduction.
Under this plan, contributions and earnings will
accumulate tax-deferred. Remember, withdrawals
from a 403(b) program are subject to ordinary
income tax, and if taken prior to age 59 ½,
a 10% federal income tax penalty may apply. Early
surrenders may also be subject to a Contingent
Deferred Sales Charge (CDSC).
Roth Contribution Option
403b plans may also offer the Roth Contribution
option.
The Benefits of Participating
in Your Employer's Plan
- Allows you to save for retirement
on a pre-tax basis
- Your taxable income is reduced
by the amount of your contribution.
- Any earnings are tax deferred
until withdrawn1
Reasons to Consider American
Business Insurance
- Long-term customer relationships
based on individual attention
- exceptional customer service
- Personalized attention beginning
at enrollment
- Service Offices nationwide
- Strong local presence
- Hands-on approach
- Responsive to your needs
- Educational excellence
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