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Tax Smart Financial Strategies for Our Employees { Provided by: Riverview School District Presented by: Kades-Margolis Corporation Your 403(b) Tax-Sheltered Account Program { Provided by: Riverview School District Presented by:
Provided by: Riverview School District Presented by: Kades-Margolis Corporation
Provided by: Riverview School District Presented by: Kades-Margolis Corporation
403(b)s are also known as TSAs, or tax-sheltered accounts TSAs are voluntary, long-term retirement savings plans
that allow school employees to set aside money on a tax- deferred basis for retirement
Permitted for ALL of our school employees under Section
403(b) of the Internal Revenue Code
Withdrawals with no IRS penalty if age 55 or older upon
separation from service
In-Service withdrawals permitted at age 59 ½
Reduce current income taxes Provide tax-deferred growth Supplements other retirement
income
Personal Savings Social Security PSERS
$100/pay in Bank $100/pay in TSA 2017 Taxable Income
(Married filing jointly)
$50,000 $50,000 TSA: $100/pay x 26
Adjusted Gross Income $50,000 $47,400
Income Tax $12,500 $11,850
Assumes 25% Tax Bracket Plus: For low and moderate income employees, the IRS offers the Savers’ Credit – a tax credit for contributing to a 403(b)
No IRS penalty if age 55 and separated from service In-Service withdrawals permitted at age 59 ½
2017
Normal Limit (or 100% of pay, if less)
$18,000
Aged 50+ “Catch up”
$ 6,000
Maximum Employee Contribution
$24,000
Employee Deferral Limits in 2017 When can I get my money out of my TSA?
Universal Availability (every employee can participate) Exchanges (between approved vendors) Transfers (from or to another school employer) Loans (if offered by the vendor) Hardship Distributions (if offered by the vendor) Roth 403(b) Contributions
Section of IRS Code that allows participants to make after-tax contributions, receive tax-deferred growth, and make after-tax withdrawals after retirement Benefits:
Allows you to have tax-free assets after retirement Could be useful for employees with more time to save
The Cost of Waiting to Make Contributions:
Annual Savings Age Started Saving # of Yrs. Contributed Amount Contributed Accumulated at Age 62 Ed $3,600 35 27 $97,200 $243,101 Joy $3,600 25 15 $54,000 $320,070
This chart assumes a fixed annual rate of return of 6% with earnings reinvested. This hypothetical example is not intended to show the performance of any particular fund for any period of time, fluctuation of principle value or investment return. The regular investment of money does not ensure a profit or protect against losses.
AXA Equitable Life Insurance Company Global Atlantic Kades-Margolis Corporation Lincoln Investment Planning, LLC Mass Mutual Life Insurance Company Plan Member Services VALIC VOYA Financial
Complete contact information for the representatives
found at www.tsacg.com under the Plan Sponsors link.
Review your employer’s plan information at
www.tsacg.com under the Plan Sponsors link
Contact one of the investment provider representatives
listed to open your 403(b) account
TSA Consulting Group 28 Ferry Road SE Fort Walton Beach, FL 32548 (888) 796-3786 www.tsacg.com
The information in this presentation is for informational purposes only and should not be construed or relied upon as tax advice or legal advice. It was not intended to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing or recommending to another party any transaction or matter
fund, it must be preceded or accompanied by the appropriate product prospectus. An investment in a mutual fund or variable annuity involves risk, including loss of principal, and is not a deposit or obligation of, or guaranteed by any bank. The investment return and principal value of an investment in a mutual fund or variable annuity will fluctuate so that you may have a gain or loss at redemption. Securities and Registered Investment Advisory Services Offered Through GWN Securities, Inc. 11440 Jog Road Palm Beach Gardens, FL 33418 (561) 472-2700 Member FINRA & SIPC Kades-Margolis, a USRP company, is not affiliated with GWN Securities, Inc For more information and to carefully consider the securities offered, including investment objectives, risks, charges, expenses and fees, please request a prospectus from you GWN Registered Representative. Please read it carefully before you invest or send money.
Helping School Employees Cope With College Expenses
Tuition Rewards™ Points are discounts to tuition at
participating private colleges and universities across the country
Think “frequent flyer miles”, but for college tuition
costs instead of airline tickets
Offered by Kades-Margolis to public school
employees through their employers
Same program, offered under:
Upromise Rewards* PA 529 Guaranteed Savings Plan (formerly TAP)*
*If you already participate in one of these programs, you are still eligible to enroll through Kades-Margolis to earn additional points
Over 400,000 Current Participants in the SAGE Tuition Rewards™ Program
The use of Tuition Rewards is limited to full-time, undergraduate tuition at participating colleges. Tuition Rewards are remitted solely as a reduction to the participating college’s full tuition bill – and NOT awarded in cash. Colleges reserve the right to use the tuition reduction as part of, or separate from, any financial aid packages. Member colleges are not required to accept Tuition Rewards on transfer students.
1 Tuition Reward™ Point = $1 towards tuition
For example – if a student has 10,000 Tuition Rewards™ Points, he or
she is guaranteed to receive a minimum scholarship of $10,000 (spread equally over four years) at a SAGE member school.
Maximum points that can be used for any one student = First year’s
tuition split over 4 years
Represents the minimum scholarship that an eligible student will
receive if and when he or she attends a member school
Students may still qualify for other scholarships, awards, loans,
grants, etc., dependent on individual college policy
5% of the employee’s 403(b) and/or 457(b) account balance(s)* upon
enrollment into the program, and each year thereafter; OR
If no 403(b), 457(b), or account balances are less than $20,000; a
minimum of 1,000 points upon enrollment into the program and each year thereafter
You must meet with a Kades-Margolis representative each year to
sign up for your annual points
*Accounts need not be with KMC; employee’s may use an account balance with any 403(b) or 457(b) vendor No requirement to have or to purchase a 403(b)/457(b)
All employees of the school can enroll as a sponsor during
the enrollment period
Annual opportunity to enroll and to accumulate future points
Sponsors may enroll their children, grandchildren, nieces,
nephews, other family members, and godchildren
May enroll children up to August 31st of the year 11th grade
begins
Enroll an unlimited number of eligible children
Sponsors may allocate accumulated points among their
named eligible students
Must assign points to children by August 31st of the year
12th grade begins
Sponsors may re-allocate accumulated points to other
eligible students if the initially named student does not go on to college or picks a non-participating college
Over 370 Participating Private Colleges Nationwide In PA: Albright, Arcadia, Cabrini, Duquesne, Lycoming,
Rosemont, Widener and 47 other colleges and universities
Out of state: Creighton, DePaul, Ohio Wesleyan, Valparaiso,
and hundreds of other colleges across the nation
Visit www.tuitionrewards.com for a complete list of
participating colleges and universities
More colleges and universities are being added all the time!
It’s a way to attract more students!
Because they have built up tuition points:
Parents may “encourage” their child to visit one or more of these
colleges during their college visitation tours
Parents may “encourage” their child to enroll in one of these colleges
College enrollments are down and competition is fierce. These
private colleges need to remain affordable to parents due to:
Competition from Community Colleges Competition from less expensive state schools
These colleges will have a list of Tuition Reward™ Program
participants to use for communications of their marketing material and recruiting packages
Kades-Margolis Representatives will enroll employees during annual open enrollment periods
No obligation to purchase a TSA or any other product to participate Simply meet with the KMC representative to register as sponsor and
designate a student
You will need to provide the following to enroll:
Your name, address, SSN, phone number, and email address Student’s name, address, email address, date of birth, current grade,
and relation to the child
Don’t forget to bring your 403(b)/457(b) account statement to earn points equal to 5% of your account value!
Securities and Registered Investment Advisory Services Offered Through GWN Securities, Inc. 11440 N. Jog Road, Palm Beach Gardens, FL 33418, 561.472.2700, Member FINRA & SIPC. Kades-Margolis Corporation, a USRP company, is not affiliated with GWN Securities Inc.
If this presentation is used in the offer or sale of a variable annuity or mutual fund, it must be preceded or accompanied by the appropriate product prospectus. An investment in a mutual fund or variable annuity involves risk, including loss of principal, and is not a deposit or obligation of, or guaranteed by any bank. The investment return and principal value of an investment in a mutual fund or variable annuity will fluctuate so that you may have a gain or loss at redemption.
PSEA endorsed marketer of 403(b)’s since 1974 We offer:
Tax-Sheltered Accounts to supplement your retirement savings IRAs and Roth IRAs PSERS Rollovers College Funding Asset Management Mutual Funds Life Insurance Long-Term Care Insurance And much more…
Visit our website at www.4kmc.com for more information about how we can help you plan and invest for your future
Exciting opportunity to:
Save on taxes Increase your spendable income
Part of the IRS Code:
Allows you to pay for certain expenses on a pre-tax basis Components:
Medical FSA Dependent Care Pre-tax premiums for certain insurance offerings
By Utilizing Pre-Tax Dollars, You Save on Taxes!!!
Covers Dependent Care for:
Your children who are under age 13 A dependent who is physically or mentally incapable of caring for
him or herself
An elderly parent who is handicapped or ill
Qualifying Expenses:
Daycare Summer Day Camp
Overnight Camp is not included
You must be the custodial parent Daycare expenses must be for you (& your spouse) while
actively working or looking for work
Covers Unreimbursed Medical Expenses, not covered by health
insurance, such as:
Medical, dental, and vision plan deductibles and co-pays Eye exams, contact lenses, and eyeglasses Hearing care expenses Prescription drugs Orthodontia Prescribed smoking cessation and weight loss programs Over-the-counter items that are considered medically necessary*
*Prescription required or OTC drug and medicine reimbursement
Under the Patient Protection & Affordable Care Act:
Medicines and biologicals will continue to be eligible for
reimbursement only if the request is accompanied by a doctor’s prescription
Examples: cough medicines, pain relievers, acid controllers
Insulin and other non-medicinal over-the-counter items, such as
band aids, will continue to be eligible without a prescription
(Effective 01/01/2011)
EXAMPLE:
Annual Election
Can only be changed during the plan year with a life changing event
Marriage, divorce, birth, death, adoption
“Use it or lose it” Riverview School District allows for a $500 medical carryover
Estimate your expenses conservatively Check your account balance on-line
Limits
Dependent Care:
$5,000 Maximum – Head of Household, Married Filing Jointly $2,500 Maximum – Each if Married Filing Separately
Medical FSA:
$2,600
REMEMBER: Use it or Lose it… Estimate Conservatively!
On-line Account Access
Review your account information File claims
Debit Card used to pay for eligible
expenses (RETAIN RECEIPTS)
Access your account and
reimbursement forms at: https://myplans.cbiz.com
A Sign-Up Sheet will be available at your school office Sign-up for your enrollment session at a time that is convenient for you. Walk-ins always welcome!!
Securities and Registered Investment Advisory Services Offered Through GWN Securities, Inc. 11440 N. Jog Road, Palm Beach Gardens, FL 33418, 561.472.2700, Member FINRA & SIPC. Kades-Margolis Corporation, a USRP company, is not affiliated with GWN Securities Inc.
If this presentation is used in the offer or sale of a variable annuity or mutual fund, it must be preceded or accompanied by the appropriate product prospectus. An investment in a mutual fund or variable annuity involves risk, including loss of principal, and is not a deposit or obligation of, or guaranteed by any bank. The investment return and principal value of an investment in a mutual fund or variable annuity will fluctuate so that you may have a gain or loss at redemption.