Oxford, Ohio 45056
(513) 529-1950 fax
Miami offers tax-saving retirement plans
Miami participates in two programs that offer employees tax-deferred savings that can lower income taxes and build retirement savings: the Tax Deferred Annuity Program (403(b) Plans) and Ohio Public Employees Deferred Compensation Program (457 Plan).
403(b) Tax Sheltered Annuities
Tax-exempt employers like Miami are eligible to offer these plans. One way these plans differ from an IRA is that they have to be opened through an employer.
Generally you pay no federal taxes on the money you put into the plan until withdrawals are taken. You pay no federal income taxes on any interest or earnings until you take a withdrawal. You can withdraw the money without penalty after you reach age 59 1/2. This particular type of plan is also referred to as a salary reduction plan. Employees can choose from a veriety of annuity companies.
The Ohio Public Employees Deferred Compensation Program is a supplemental retirement benefit plan that offers all Ohio public employees the opportunity to accumulate tax-deferred assets for retirement.
Contributions are on a pre-tax basis and are made by automatic payroll deduction.
In both the 457 and the 403b you control your money by selecting the funds you want to invest in. Most companies offer free financial assistance.
If you contribute $25 bi-weekly to the 457 Plan for a period of 20 years, your accumulation could be $30,966 or over 30 years $76,655 depending on the investment options you choose.
Information on the plans is available in the benefits services office, 15 Roudebush Hall; 9-3926.
Date Published: 05/25/2006