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Annuities

 

Here's what you can look forward to.

  • A safe investment alternative that includes guaranteed interest rates, tax deferral, and an option to have guaranteed income for life.
  • Fund qualified retirement plans such as Roth, Traditional or Simple IRAs or a Simplified Employee Pension (SEP)
  • A tax-deferred savings plan that is not subject to annual deposit limits
  • Use it to rollover qualified funds from an employer's retirement plan, such as a 401(k) when changing jobs

Teacher and Virginia Retirement System Employees:
Smart Reasons to Save for Retirement with an LSW 403(b)

 

The Power of Time

By making regular contributions to your employer's §403(b)/TSA plan, you have the potential to develop a sizeable nest egg over the long term.



Tax Advantages

Pre-tax Savings - Traditional §403(b)/TSA
By deferring compensation into a traditional §403(b) account, you realize immediate tax savings on your contributions. Before any income taxes are taken out, your paycheck is reduced by the amount you decide to invest. Therefore your total taxable income is less.


Tax-deferred Growth Potential - Traditional §403(b)/TSA
Taxes on any investment earnings in a traditional §403(b) account are deferred as well. This way, you don't pay taxes on anything that your deferred compensation earns until it is distributed. While withdrawals are taxed as ordinary income, the impact may be minimized as many investors find themselves in a lower tax bracket at retirement.


Tax-free Growth Potential - Roth §403(b)
While Roth §403(b) contributions are made with after-tax dollars, both contributions and earnings may grow tax-free.


Tax-free Retirement Income - Roth §403(b)
Qualified Roth §403(b) account distributions are tax-free.


Automatic Payroll Deductions

The amount you decide to defer each pay period will automatically be withheld from your paycheck and deposited into your retirement account.


In addition to retirement products, we offer guidance and advice for Virginia State Retirement Employees to maximize their benefits.