Participants in 401(k) plans, employees of public schools and tax-exempt organizations with 403(b) tax-sheltered annuities
, as well as state and local government employees with 457(b) deferred-compensation plans may be eligible to take advantage of these streamlined loan procedures and liberalized hardship distribution rules.
For example, Balderas' contract includes a $400 increase in the amount of tax-sheltered annuities
he is to receive for his retirement plan, from $600 to $1,000 per month.
The tax law treats distributions from qualified plans and tax-sheltered annuities
similarly, a treatment generally familiar to tax practitioners.
In order to set up a SIMPLE IRA plan, the employer must not maintain another employer-sponsored retirement plan (including qualified plans, tax-sheltered annuities
, and SEPs) and in the preceding year must have employed 100 or fewer employees earning at least $5,000.
, the kind employees of nonprofit institutions put into 403(b) plans with pretax money, have been around since 1958.
They also describe the different types of plans, including top-heavy plans, 401 (k) plans, employee stock ownership plans, multiemployer plans, Roth IRAs, simplified employee pensions, saving incentive match plan for employees, rollovers, and tax-sheltered annuities
Retirement Plans Loans to Katrina Victims 401(k)s and similar employer-sponsored retirement plans, such as 403(b) tax-sheltered annuities
and certain 457 deferred-compensation plans, can make loans and hardship distributions to victims of Hurricane Katrina and members of their families.
In this section, the savings incentive match plan for employees (Simple IRA) has more pages devoted to it than to simplified employee pension (SEP) plans or to section 403(b) tax-sheltered annuities
403(a) annuity plans, 403(b) tax-sheltered annuities
and 457 eligible governmental plans.
The book also covers other provisions, such as minimum participation, veterans rehire provisions, and tax-sheltered annuities
The above provisions are helpful for individuals wishing to retire early, but may be even more helpful for taxpayers with large accumulations in qualified retirement plans, tax-sheltered annuities
That money is then invested, usually in tax-sheltered annuities