1. Your 403(b) Plan – What you need to know…
Understanding your plan and its features

2. Changes with the new 403(b) Regulations
Your employer is now required to provide your plan in written form
Investment providers are required to enter into an agreement with your employer to provide information on transactions occurring within your plan
The only allowable transactions are those authorized under the terms of your employer’s plan
All transactions must now be pre-approved prior to processing

3. What is a 403(b)? Voluntary Not your State Retirement or pension
Additional money you will need for retirement
Pre-tax and tax deferred
Mutual funds or annuities

4. Pre-tax? Before taxes are calculated
After-tax Contributions
Pre-tax Contributions
Your wages $2,000 Your wages $2,000
Fed. Tax 27% -$540 Pre-tax contribution -$200
Income now $1,460 Income now $1,800
After tax contribution -$200 Fed. Tax 27% $486
Take home pay $1,260 Take home pay $1,314

5. Tax Deferred?
The money you are gathering in your 403(b) will not be taxed until you take it out (distribution)
Most people will be in a lower tax bracket after retirement than they are today

6. When can I have my money?
To avoid penalties and fines, you must qualify for a distribution with one of these events:
Age 59½
Disability
Severance of employment
Death

7. What are the limits? In 2008 403(b) limit: $15,500
We will receive instruction from the IRS for 2010 and beyond in the future

8. What if I’m late to start saving?
It’s never too late!! Every little bit helps!!
The IRS allows two “catch up” provisions you may qualify for:
Age 50 - $5,500 in 2009
15 years of service (for the same employer) - ($3,000/year, lifetime maximum of $15,000)
These will allow you to invest beyond the $16,500 limit. One or both may be used.

9. What is a mutual fund?
You and many other people combine your money to buy shares of a fund.
The fund can have hundreds of stocks or bonds in it.
You are purchasing a portion of each.

10. Mutual Fund Example
Imagine a large pizza. Each of the ingredients is a company. A good pizza will have all of the ingredients spread throughout the pie so everyone receives some.
Each person in the fund owns a slice of the pie. Buying a slice is cheaper than buying all of the ingredients for the whole pizza.

11. Which mutual fund is for me?
Do you want growth? For how long?
Do you want income? Now or later?
Look at or to compare funds.

12. What will it cost? Commissions are called Loads. Fees are separate.
Front-end load – paid up front
No load – no commissions
Back-end load – paid when sold

13. Possible Additional Fees
Redemption fee – percentage the fund charges to withdraw your money
Surrender fee – same as a redemption fee but for only a certain amount of time
Remember: Fees are how the fund companies pay their employees – but you can negotiate.

14. What is an Annuity?
A contract between you and the insurance company about investments.
Annuities are not life insurance policies.

15. Why an Annuity? Annuities have guarantees:
May be a fixed rate of return
Maybe you won’t lose your initial investment
Because of the guarantees, you could be paying higher fees and commissions, or losing the opportunity for greater gain.

16. Do I need an advisor?
Financial planners can be useful tools and resources.
Do you have any special needs to consider?
Advisors should ask you many questions about your life and goals before asking how much you are wanting to invest with them.

17. Advisor Fees
Commission – invest in what you tell them, takes a percentage of your investment money as payment
Fee based – gives you a master plan, but you do the investing – per session charge
Fee + Commission – does both

18. What if my vendor elects to stop offering 403(b)s or refuses to sign?
You will be required to open a new account with an accepting vendor
You can elect to freeze your existing account or you can request a contract exchange. Review options and fees involved.
New elections must be made or your contributions will cease.
You will be able to make new elections based on the terms of your plan.

19. What is the next step? Review Your Enrollment Kit
Choose one or more investment providers
Set up your account with those providers
Complete you Enrollment on Participant Web or via our Salary Reduction Agreement and provide your employer with a copy of your new Contract Application
Request a Contract Exchange Request if you wish to move existing assets within the plan.
Review Participant Web and your new account to help plan for your future.

20. Contact Us
For more education, newsletters or a retirement calculator, you can visit our Web site at (Ask for your plan code) We cannot give you specific advice about particular investments
Gatekeeper Administration & Consulting, LLC
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