Advisors Working with Individuals

Description | Account Fact Sheets


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.

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Account Fact Sheets