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AIG Retirement Services brings you the knowledge, investment options and personal services to help keep things simple. 1/2 Tax-deferred accumulation Current federal income taxes on all contributions, interest and earnings in your 457(b) DCP are deferred until withdrawal, usually at retirement. Tax-deferred earnings, coupled with the power of compounding, may provide greater growth than might be possible with current taxable savings methods. Remember that income taxes are payable when you withdraw money from your account and restrictions may apply to withdrawals prior to age 59½. Pretax contributions You contribute by convenient payroll reduction before federal income tax withholding is calculated. This helps reduce your current taxable income so you can save more for retirement with money that otherwise would have gone toward income taxes. Access to your savings Generally, depending on your employer’s plan, your account contributions can be distributed in any of the following events: • Reached age 59½ • Severance from employment • Your death • Unforeseeable emergencies In addition, distributions are not subject to the 10% federal early withdrawal tax penalty except on amounts rolled into the 457(b) plan from other non-457(b) eligible retirement plans. Investment flexibility We offer an array of innovative investment options from well-known investment managers. This provides the flexibility you might need to design a unique program tailored to your individual needs. Keep in mind that investment values will fluctuate so that your investments, when withdrawn, may be worth more or less than the original cost. Remember investing does involve risk, including the possible loss of principal. Your financial professional can assist you in choosing the options that will match your long-term goals. Your salary deferral contributions made to the plan are not subject to the 10% federal early withdrawal tax penalty. 457(b) Deferred Compensation Plan An opportunity to take advantage of tax-deferred income for your retirement. ---PAGE BREAK--- © American International Group, Inc. All rights reserved. VC 16593 (12/2020) J555704 EE This material is general in nature, was developed for educational use only, and is not intended to provide financial, legal, fiduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. Please consult with your financial professional regarding your situation. For legal, accounting or tax advice consult the appropriate professional. Securities and investment advisory services offered through VALIC Financial Advisors, Inc. (VFA), member FINRA, SIPC and an SEC-registered investment adviser. Annuities are issued by The Variable Annuity Life Insurance Company (VALIC), Houston, TX. Variable annuities are distributed by its affiliate, AIG Capital Services, Inc. (ACS), member FINRA. AIG Retirement Services represents AIG member companies The Variable Annuity Life Insurance Company (VALIC) and its subsidiaries, VALIC Financial Advisors, Inc. (VFA) and VALIC Retirement Services Company (VRSCO). All are members of American International Group, Inc. (AIG). We see the future in you. SM CLICK aig.com/RetirementServices CALL 1-[PHONE REDACTED] VISIT your financial professional Tax-free loans Tax-free loans, which are available under some governmental 457(b) plans, enable you to borrow against a portion of your accumulated account value, subject to certain limitations, without permanently reducing your account balance. Remember that defaulted loan amounts (not repaid on time) will be taxed as ordinary income. 2 /2 2021contribution limits: • 100% of annual includible income up to $19,500 • Up to $19,500 as a catch-up contribution if you are within the last three taxable years ending in the year before normal retirement age under your plan and undercontributed in prior years • $6,500 as an age-based catch-up for those age 50 or older [governmental 457(b) plan participants only] IMPORTANT NOTE: You cannot benefit from both catch-up contribution amounts, but you may select the option that gives you the higher amount. Nongovernmental 457(b) plan participants are not eligible for the age-based catch-up option. 457(b) Deferred Compensation Plan.