Kades-Margolis welcomes you back to school with enhancements to Money by Design – the PSEA endorsed 403(b) program!
Before we talk about the enhancements, a brief description of 403(b) retirement programs is in order. For those of you who are not aware, a 403(b) is a very convenient salary reduction method to supplement your PSERS benefit. There are two versions of the 403(b), Traditional and Roth.
- Traditional 403(b) - Contributions are sheltered from federal income taxes and accumulations are tax sheltered - no federal taxes are paid until withdrawn.
- Roth 403(b)* – No tax deferral on contributions but all contributions and earnings are federal income tax free.
We are living much longer and there is likely no COLA (cost of living adjustment) with PSERS. Starting a 403(b) sooner rather than later probably makes sense, especially for new PSERS/PSEA Members who are part of Act 5 which reduces the PSERS benefits.
One of our many retirement planning professionals throughout the state can work with you to determine which version may suit your needs and goals.
Now to the enhancements in your endorsed programs.
There are expenses and fees inherent with all 403(b) programs, no matter what insurance company or mutual company you may be familiar with. There are two endorsed programs:
- Money By Design I (MBD I) – Front end sales charged program – sales charge reduced!
- Money By Design II (MBD II) – Fee based program – fees reduced!
Both MBD I and MBD II feature over 400 mutual funds including Vanguard and a Stable Value Fund with a guaranteed minimum interest rate.
All the above enhancements are provided for existing clients as well as new clients.
Kades-Margolis has a new streamlined online enrollment option available for new clients to open a 403b online and start saving for their retirement.
For more information on your endorsed 403(b) programs, contact us at 800-433-1828 option 4 or visit our website at www.4kmc.com
*The withdrawals from a Roth are tax-free if you’re over the age of 59 ½ and at least five years have expired since you established your Roth IRA