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401(a) Government Agency Retirement Plan |
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This “money purchase” pension plan is the premier retirement solution for Government Agencies. As a “qualified” Defined Contribution pension plan for public sector employees, this retirement solution allows employers to make “pre-tax” contributions on behalf of their employees. In addition, this plan allows for “voluntary” contributions by employees on a “post-tax” basis. This plan design is IRS approved and provides plan sponsors the opportunity to customize their plan through eligibility requirements, vesting schedules, loan provisions, etc. |
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457 Deferred Compensation Plan |
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Life Associates has packaged a “non-qualified” Deferred Compensation plan to complement their 401(a) plan. The 457 plan allows employees to annually defer up to $15,500 per year (2007 limit) on a tax deferred basis (there is also a “catch-up” provision allowing employees age 50 and over to annually contribute an additional $5,000). This product offers significant tax benefits: a) It lowers individual’s taxes based on reducing gross earnings, and b) It allows contributions and earnings to grow “tax deferred” until distribution when individuals are typically in a lower tax bracket. This plan is a powerful self-funding vehicle that can be used by plan participants to supplement their employer provided plan. |
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Funding Options |
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Life Associates utilizes a single investment platform for plan participants for both the 401(a) and 457 Deferred Compensation plans. Plan participants have 32 high quality investment options to select from for both retirement programs |
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Group Term Life Insurance |
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Life Associates offers a voluntary group life insurance program to complement their retirement solutions. This program provides a group term life insurance contract for each plan participant based on a multiple of their salary (i.e. 0.5– 2.5 X annual salary). This coverage is not underwritten for age or medical condition and the cost is underwritten by the employer. At the time of separation of service, each employee may convert coverage to a permanent individual life insurance contract without proving evidence of insurability. |
