Advisors Working with Individuals

Description | Account Fact Sheets

Description

Supplemental retirement plans provide a tax-deferred way to help build extra retirement assets.

  • They are available to employees by an employer under a 403(b) tax-deferred annuity plan.
  • Contribution limits vary by individual, but many people can contribute $16,500 or more in 2009 and 2010.
    Withdrawals are generally subject to restrictions and a 10 percent penalty before age 59½.
  • Starting a supplemental retirement plan authorizes the employer to set aside a portion of your client's salary and place it in the allocation options selected. Because the contributions are in before-tax dollars, less taxable income is repayable to the IRS and less federal income taxes are owed. No taxes are due on earnings until they're taken as income.

back to top

Account Fact Sheets

C46809