defined contribution plans) are: Physicians Compensation Survey Participants 401(k) Plans with an 28% provide a plan, Employer Match organization matches 100% of physician contributions of 4% to 6% of pay
Tax-Deferred Annuity 23% provide a plan; 403(b) with an organization matches Employer Match 50% to 100% of physician contributions of pay 401(k) Salary Reduction 12% provide a plan Only Plans
Tax-Deferred Annuity 35% provide a plan 403(b) Salary Reduction Only Plans
The Northwestern residents stopped short of forming a union in favor of a "house staff organization" which won a number of perks including a
tax-deferred annuity, additional parking, and lower-cost enhanced health benefits.
The owner can switch funds within a fund family, as well as trade between fund families, making transactions at no cost or taxation because they occur under the umbrella of a
tax-deferred annuity.
Over the past three years, the 29-year-old teacher has been investing in stocks, mutual funds and a
tax-deferred annuity plan that seeks maximum capital gains.
(Previously, the hospital paid the premiums for single coverage for all employees.) Other revisions in economic terms include a reduction in the early retirement penalty to 3 percent (was 6 percent) for each year an employee retires before reaching age 65; an employer contribution to employees' 403(b)
tax-deferred annuity plans of 5 cents an hour worked; a change in life insurance benefits, from $6,000 for regular partimers and $12,000 for full-timers to the amount of an employee's annual salary; time-and-one-half pay for working on eight specified holidays (formerly, one); and a $20,000 increase (to $40,000) in the hospital's annual contribution to the tuition assistance program.
Significantly, though, all amounts contributed to a
tax-deferred annuity count against the $7,500 maximum deferral under a 457(b) plan.
Tax-deferred annuity plans--403(b) and 457 plans-- also are used widely by public-sector and nonprofit workers.
Another thought: If the taxpayer does not need the tax-exempt interest for living expense purposes, consider repositioning some of these assets into a
tax-deferred annuity. Repositioning these assets into annuities takes this income off the tax return.
The trustees sold the stock and invested in
tax-deferred annuity contracts.
* The
tax-deferred annuity plan limit (section 403[b]) is capped at $9,500, reduced from 20% of compensation times years of service minus contributions to date with no caps.
Another option is a
tax-deferred annuity. NEA Member Benefits offers such a plan through its Value builder Annuity Program.
The rebates are funneled quarterly into a
tax-deferred annuity, currently earning 5.5%, from Metropolitan Life Insurance Co.
