Retirement Plans

Features:
	Tax advantages

You have many options available when saving for retirement such as plans offered in the workplace and accounts established by investors themselves.

We can help you understand the many retirement planning options available so that you can take full advantage of these opportunities.

If you are an employee of a school district or other non-profit organization, a Tax Sheltered Account (TSA), more commonly known as a 403(b) plan, is your primary retirement planning vehicle. A 403(b) plan allows you to:

• Save pre-tax earnings for your retirement, which effectively lowers your income tax burden
• Invest those savings on a tax-deferred basis, which effectively enhances the compounding effect to your savings over time

Roth 403(b) Plans

Effective January 1, 2006, employees of public school districts, community colleges and other non-profit organizations have an additional way to fund their retirement: the Roth 403(b). The addition of the Roth 403(b) account option provides you with greater flexibility to save for retirement using either pre-tax dollars, after-tax dollars or a combination of the two.

Roth 403(b)s work just like a traditional 403(b) with one important difference: Roth 403(b) contributions are made using after-tax dollars. Although Roth 403(b) contributions won't reduce your current income tax liability, they will provide a tax-free income source at retirement (monies must be withdrawn after age 59½ and the account must have been in existence for at least five years).

You have the option of funding your retirement using either pre-tax [Traditional 403(b)] or after-tax [Roth 403(b)] contributions or a combination of the two, depending on your situation.

Total annual contribution to all 403(b) accounts (Roth and Traditional) cannot exceed the maximum annual contribution limits for the year in which they are made.

Individual Retirement Accounts (IRAs)

Saving for retirement, using plans not offered in your workplace, is best accomplished through an Individual Retirement Account (IRA):

• Traditional IRAs offer qualified investors the ability to deduct contributions (up to the current annual limits) from their federal income tax returns and to invest their savings on a tax-deferred basis.
• Roth IRAs are funded with after-tax dollars (not tax-deductible) and offer tax-deferred growth and tax-free withdrawals of qualified earnings upon retirement.