1. Saving For Retirement and 403(b) Basics
Name:
Title:
Company Name:
The financial advisor indicated above and his or her associated firm are not affiliated with OppenheimerFunds or any of its affiliates. Products offered through OppenheimerFunds.
OppenheimerFunds is not undertaking to provide impartial investment advice or to provide advice in a fiduciary capacity.

2. Agenda The 403(b) Benefits of Saving in a 403(b) OppenheimerFunds
Consider a 403(b)
Today I want to briefly talk about the terrific opportunity you have right now – namely to consider contributing to your employer’s 403(b) plan. Lets talk a little about the 403(b) and the benefits these plans offer.

3. 403(b) Plan
A defined contribution plan, similar to a 401(k), available only to public schools and certain tax- exempt organizations
Employees enroll through their employer or plan administrator and make contributions through convenient payroll deferrals
A 403(b) plan is a type of tax-sheltered retirement plan, similar to the 401(k) plan. It is available only to public schools and certain tax-exempt organizations.
Institutions eligible to establish a 403(b) plan include:
Public schools – kindergarten through HS(K-12) & College
Churches
Hospitals
Foundations
Charities
Employees enroll and participate through their employer or TPA.  Getting the deferral process started is simple.  Participants complete a salary reduction agreement provided by their employer or TPA agreeing to have a certain dollar amount or percentage of their salary taken out of their pay checks.  The participant also elects their investment selections based upon the investments offered through the employer.  With this authorization in place, the payroll department takes the salary deferrals out of the employees pay checks and sends the deferrals to the selected investment provider. 3

4. Where will your Retirement Income come from?
Your 403(b) plan can be an important component to your retirement income.
Social Security
Teacher’s Pension
IRAs & Personal Savings
Where will your retirement income come from?
Potential avenues for retirement income are your employer’s pension, social security, your 403(b) retirement plan, and possibly IRA and personal savings. As States struggle with pension costs and Social Security faces challenges in the future, it makes it even more important to consider participating in your 403(b) plan.
Contributing to a 403(b) plan is one of the areas you can take control of your retirement preparedness while taking advantage of the tax savings benefits.
403(b)

5. Benefits of a 403(b) Plan
Let’s look at some benefits of contributing in the 403(b) plan.

6. Benefits of a 403(b) Plan Tax Advantages
Saving in a 403(b) offers tax-advantaged opportunities
Two ways to save
Traditional, pre-tax deferrals
Roth, after-tax contributions
Contributions can be made either wholly in one type or split between the two, up to the annual IRS contribution limit
One of the biggest advantages saving in a retirement plan provides is the tax benefits.
One way to save offers tax benefits today - pretax, the other offers tax benefits tomorrow - Roth
Contributions on a pre-tax basis are tax deductible and deferred until you withdrawal the money.
Roth contributions grow tax free provided certain conditions are met. With a Roth you pay taxes on the contributions up front.
You have the flexibility to elect how your contributions will be made – pre-tax or Roth – or split between the two, as long as you don’t go over the annual IRS contribution limit.

7. Benefits of a 403(b) Plan Two Ways to Save – Traditional, pre-tax $38
With pre-tax savings your 403(b) contributions are deducted before taxes are taken out.
$38
$50
In this example, you save $50 tax-deferred with only a $38 difference in your paycheck
$238
$250
Contributions are pre-tax, so the income tax you pay is less
Without 403(b) Contribution
With 403(b) Contribution
Paycheck Amount
$1000
Pre-tax deferrals $0
$50
Federal Income Tax1
$250
$238
Net Pay
$750
$712
There are two ways to save.
Pre-tax savings:
With pre-tax savings 403(b) contributions are deducted before taxes are taken out. This helps by lowering the amount you pay in income tax.
In the example, you saved $50 tax-deferred in your 403(b), but only reduced your paycheck by $38.
You make $1,000 a week. At a 25% tax bracket you pay $250 in current taxes. However, if you saved 5% of your salary through pretax saving your taxable income would be reduced to $712. Therefore you would only pay $238 in current taxes.
1. Assumes a federal income tax bracket of 25%. The chart is for illustrative purposes only.

8. Benefits of a 403(b) Plan Two Ways to Save – Roth, after-tax
Roth 403(b), contributions are made with after-tax dollars
The money in the Roth grows tax free, so you don’t have to pay any tax on your withdrawals, including any earnings, when you retire1
Anyone can benefit from Roth contributions. You may want to consider a Roth 403(b):
If you expect to be in a higher tax bracket in retirement
If you are a younger employee who has a longer horizon to retirement
If you want to diversify the way contributions and earnings are taxed
If you wish to leave tax-free money to heirs2
With a Roth you pay income taxes on your contributions before you investment them. So your contributions don’t reduce your taxable income as they do with pre-tax contributions.
However, with a Roth any earnings grow tax free if you withdrawal them after the 5th tax year from when you made the first contribution and you experience a qualifying event.
So with the Roth you are giving up the tax break now for the tax break in the future. Is the Roth a right choice for you. Let’s look at some considerations:
If you expect to be in a higher tax bracket in retirement, the Roth may be right for you.
Younger employees who have a longer horizon before retirement and more time to accumulate tax-free earnings under the Roth feature may find it attractive
If you wish to diversify with a pool of tax-free and taxed-money.
A Roth 403(b) can be rolled into a Roth IRA and passed on to your heirs tax free, provided the five-year requirement is satisfied.
1. Distributions from a Roth are tax and penalty free provided the account has been held five years or more and a qualifying event is experienced.
2. Provided account has been held five years or more.

9. Benefits of a 403(b) Plan The Potential Power of Compounding
Compounding happens when you earn returns on your returns by re-investing any interest or gains every year1
To seek to take advantage of compounding, contribute to your 403(b) and limit withdrawals. The more time you give your investments, the more you can accelerate the potential of compounding
Compounding offers one of the most powerful ways to grow your account. Compounding means earning returns on your earnings and yields. When returns are compounded, they are added to your account, so when interest is calculated next it is on the new amount. You earn interest on your earnings.1
1Remember, the value of your investments can fluctuate resulting in negative compounding. Also, any distributions will decrease the power of positive compounding.
1. Remember, the value of your investments can fluctuate. Also, withdrawals from your 403(b) will reduce the effect of compounding.

10. The Potential Power of Compounding in a Retirement Plan
This illustration shows how much faster assets can potentially compound in a tax-advantaged retirement plan relative to a comparable investment in a non-tax-favored savings vehicle. It assumes $100 of salary saved per month at an annual 6% rate of return1 over a 20-year savings period2
Because your money accumulates tax-deferred until you make withdrawals, your retirement savings have the potential to compound more rapidly than when taxed on the investments. See the next slide.
This illustration shows how much faster assets can potentially compound in a tax-advantaged retirement plan relative to a comparable investment in a non-tax-favored shavings vehicle. It assumes $100 of salary saved per month at an annual 6% rate of return1 over a 20-year savings period.2
This hypothetical example is not intended to show the performance of any Oppenheimer fund for any period of time, nor does it show fluctuations in a principal value or investment return.
Assumes a fixed average annual rate of return of 6% on a tax-deferred basis, with dividends and distributions reinvested. Withdrawals from qualified plans prior to age 59 ½ may be subject to taxes and penalties. The hypothetical ending values are subject to income tax when withdrawn. Periodic investment plans do not assure a profit or protect against losses in declining markets.
This hypothetical example is not intended to show the performance of any Oppenheimer fund for any period of time, nor does it show fluctuations in a principal value or investment return.
Assumes a fixed average annual rate of return of 6% on a tax-deferred basis, with dividends and distributions reinvested. Withdrawals from qualified plans prior to age 59 ½ may be subject to taxes and penalties. The hypothetical ending values are subject to income tax when withdrawn. Periodic investment plans do not assure a profit or protect against losses in declining markets.

11. Benefits of a 403(b) Plan Dollar Cost Averaging
Dollar cost averaging results from ongoing payroll deductions of a fixed dollar amount invested in your 403(b) plan on a regular basis
You buy fewer shares when prices are high and more shares when prices are low1, generally lowering the average cost per share over time
By investing fixed amounts of money at fixed intervals, dollar cost averaging can lower your average cost per share. It helps you buy fewer shares when the market is high and more shares when the market is low. With dollar cost averaging, you aren’t constantly trying to “time” the market. However, dollar cost averaging (DCA) does not guarantee profit and cannot protect against loss in declining markets. Before investing, investors should evaluate their long-term financial ability to participate in such plans.
1. Since dollar cost averaging involves continuous investments regardless of price levels of fund shares, you should consider your financial ability to continue purchases through periods of low price levels. Dollar cost averaging does not guarantee profit nor protect against losses in declining markets. 11

12. Benefits of a 403(b) Plan Example of Dollar Cost Averaging1
Regular Investments
Price per Share
Shares Purchased 1
$100
$10 10 2
100
$ 5 20 3 4
Total
$400 60
Average cost per share: $6.67
Average price per share: $7.50
Let’s say you contribute $100 into your retirement account each quarter. During quarter one, the price per share was $10 and therefore you were able to purchase 10 shares. During quarter two, the price per share dropped to $5, and you could purchase 20 shares. Next quarter the price per share was $10 again and you received 10 shares. And during quarter 4, the price per share was $5 and you received 20 shares.
Over one year, your total amount invested was $400, and your average cost per share was $6.67 ($400/60). The average price per share during the same time period was higher, at $7.50 ($10+$5+$10+$5 = $30/4).
So with dollar cost averaging, your average cost per share was lower than the market’s cost per share. However, since dollar cost averaging plans involve continuous investments regardless of price levels of fund shares, you should consider your financial ability to continue purchases through periods of low prices levels. Such plans do not guarantee profit or protect against losses in declining markets.
1. Automatic investment plans do not guarantee a profit nor protect against losses in declining markets. Dollar cost averaging involves continuous investments regardless of price levels of fund shares, and you should consider your financial ability to continue purchases through periods of low price levels. These charts do not depict the prices or investment performance of any investment.

13. Benefits of a 403(b) Plan Contribution Limits
The IRS establishes annual limits for retirement savings accounts
The limits for 403(b) and other defined contribution plans are significant
Annual Deferral Limits1
Limit
2017
Elective Deferrals
$18,000
Catch-up Contributions 50+ years old
$ 6,000
Unique to 403(b) plans: 15 year catch-up
Lifetime max
$15,0002
The Internal Revenue code provides for dollar limitations on contributions under qualified retirement plans. The limits are adjusted annually for cost of living increases.
Limits for 403(b) and other defined contribution plans are significant, and much larger than the limits on IRAs. This means that you can contribute a good amount annually in your 403(b).
There is an additional 15-Year catch up unique to 403(b) plans. Under this rule, if an employee’s elective deferrals in prior years was less than their deferral limit, he or she may be able to make deferrals up to $3,000 over the limit for the current year, subject to a lifetime maximum of $15,000.
1. In addition to your elective deferrals, your employer may also make contributions.
2. If an employee’s elective deferrals in prior years was less than their deferral limit, he or she may be able to make deferrals up to $3,000 over the limit for the current year, subject to a lifetime maximum of $15,000. Historical data must be available. Talk to your employer.

14. Benefits of a 403(b) Plan Loan Feature
If your employer’s plan permits, you may take a loan from your 403(b) balance
You may borrow up to the lesser of:
$50,000 reduced by the highest outstanding loan balance during the last 12-month period at the time you apply for the loan OR
50% of your plan assets
Evaluate your options carefully before borrowing from your plan savings as it may adversely impact your retirement goals.
If permitted under the specific provisions of your 403(b) plan, you will be allowed to take a loan out of your 403(b) plan.
You may borrow the lesser of:
$50,000 reduced by the highest outstanding loan balance during the last 12-month period at the time you apply for the loan OR
50% of your plan assets
You should evaluate your options carefully before borrowing from your retirement account savings. While it can be a big help in certain situations, making early withdrawals leaves less money in your 403(b) plan invested for your retirement and earnings returns.
Loan repayments and interest on the loan are paid back to your account. 14

15. Benefits of a 403(b) Plan Portability
If you experience a “qualifying event” you can take a distribution in one of the following ways:
Rollover into an IRA
Rollover into the retirement plan at your new job1
Take a cash distribution or
Leave the money in the plan2
403(b) accounts may be distributed in certain circumstances. These are referred to as “qualifying events”:
Reaching normal retirement age (59 ½)
Permanent disability
IRS levy
Severance from employment
Death of account owner
1. If plan accepts rollovers. Rollovers to SIMPLE IRAs are not permitted.
2. If balance is $5000 or more.

16. OppenheimerFunds

17. OppenheimerFunds Comprehensive Investments
Founded in 1959, OppenheimerFunds is a global asset manager with decades of experience serving the needs of retirement plan participants and sponsors, as well as their advisors. We offer investments across every major asset class, including U.S. and international equity and
fixed-income portfolios. We also provide innovative asset allocation strategies to help investors pursue specific investment and risk management objectives.

18. Take Action Talk to me about how to: Enroll in your 403(b) plan
Maximize your contributions
If you’re not already enrolled, I encourage you to enroll and start participating in your 403(b). Also, try to stretch your savings by maximizing the contributions into your plan. The key is to contribute early and consistently. You are investing directly from your paycheck so often times, you don’t even notice it. Remember that even relatively small contributions made consistently over time have the potential to add up. 18

20. Disclosures
Mutual funds are subject to market risk and volatility. Shares may gain or lose value.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
This material is provided for general and educational purposes only, and is not intended to provide legal or tax advice, and is not for use to avoid penalties that may be imposed under U.S. federal tax laws. OppenheimerFunds is not undertaking to provide impartial investment advice or to provide advice in a fiduciary capacity. Contact your attorney or other advisor regarding your specific legal, investment or tax situation.
Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com or calling CALL OPP ( ). Read prospectuses and summary prospectuses carefully before investing.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc Liberty Street, New York, NY © 2017 OppenheimerFunds Distributor, Inc. All rights reserved.
RPL July 14, 2017