Life Insurance & Retirement Plans

How We can Help You

Overview

There are several ways we can help you secure your
financial future. These are the major services we offer:

Life Insurance

Encompass provides a variety of insurance services Depending on your family's specific needs and objectives.

-Coverage during working years only
-Pension max planning for retirement
-Supplemental tax-free plans for retirement
-Specific coverage in the case of a heart attack, stroke, cancer, or other major medical conditions

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Life Insurance

Encompass provides a variety of insurance services Depending on your family's specific needs and objectives.

-Coverage during working years only
-Pension max planning for retirement
-Supplemental tax-free plans for retirement
-Specific coverage in the case of a heart attack, stroke, cancer, or other major medical conditions

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RETIREMENT PLANS

401K Plans

A 401(k) is a feature of a qualified profit-sharing plan that allows employees to contribute a certain amount of their wages to individual accounts. 
Elective salary deferrals are excluded from the employee’s taxable income (except for designated Roth deferrals). Employers can contribute to employees’ accounts. 

Distributions, including earnings, are includible in taxable income at retirement (except for qualified distributions of designated Roth accounts).

457 Plans

Plans of deferred compensation as described in IRC section 457 are available for certain state and local governments and non-governmental entities tax exempt under IRC 501. They can be either eligible plans under IRC 457(b) or ineligible plans under IRC457(f). Plans eligible under 457(b) allow employees of sponsoring organizations to defer income taxation on retirement savings into future years. Ineligible plans may trigger different tax treatment under IRC 457(f).

403b Plans

A 403(b) plan (tax-sheltered annuity plan or TSA) is a retirement plan offered by public schools and certain charities. It’s similar to a 401(k) plan maintained by a for-profit entity. Just as with a 401(k) plan, a 403(b) plan lets employees defer some of their salary into individual accounts. The deferred salary is generally not subject to federal or state income tax until it’s distributed. However, a 403(b) plan may also offer designated Roth accounts. Salary contributed to Roth account is taxed currently, but is tax-free (including earnings) when distributed. 

Eligible employers are: Public school, college, or university, Church Charitable entity tax- exempt under Section 501(c)(3) of the Internal Revenue Code.

RETIREMENT PLANS

401K Plans

A 401(k) is a feature of a qualified profit-sharing plan that allows employees to contribute a certain amount of their wages to individual accounts. 
Elective salary deferrals are excluded from the employee’s taxable income (except for designated Roth deferrals). Employers can contribute to employees’ accounts. 

Distributions, including earnings, are includible in taxable income at retirement (except for qualified distributions of designated Roth accounts).

457 Plans

Plans of deferred compensation as described in IRC section 457 are available for certain state and local governments and non-governmental entities tax exempt under IRC 501. They can be either eligible plans under IRC 457(b) or ineligible plans under IRC457(f). Plans eligible under 457(b) allow employees of sponsoring organizations to defer income taxation on retirement savings into future years. Ineligible plans may trigger different tax treatment under IRC 457(f).

403b Plans

A 403(b) plan (tax-sheltered annuity plan or TSA) is a retirement plan offered by public schools and certain charities. It’s similar to a 401(k) plan maintained by a for-profit entity. Just as with a 401(k) plan, a 403(b) plan lets employees defer some of their salary into individual accounts. The deferred salary is generally not subject to federal or state income tax until it’s distributed. However, a 403(b) plan may also offer designated Roth accounts. Salary contributed to Roth account is taxed currently, but is tax-free (including earnings) when distributed. 

Eligible employers are: Public school, college, or university, Church Charitable entity tax- exempt under Section 501(c)(3) of the Internal Revenue Code.

TRADITIONAL IRA vs. 403b/401k

Features

Traditional IRA

403b / 401K Plans

Who Can Contribute?

You can contribute if you (or your spouse if filing jointly) have taxable compensation but not after you are age 70 1/2 or older

You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts (see 2014 and 2015 limits)

Are my contributions tax deductible?

You can deduct your contributions if you qualify.

Your contributions are deductible.

How much can I contribute?​

The most that you can contribute to all of your traditional and Roth IRAs is the smaller of:

  • $5,500 (for 2018) or $6,500 if you’re age 50 or older by the end of the year
  • Your taxable compensation for the year

$18,500 up to age 50

$24,500 over age 50

What is the deadline to make contributions?​

Your tax return filing deadline (not including extensions). For example, you have until April 15, 2015 to make your 2014 contribution.

Contributions must be made through payroll.

When can I withdraw money?​

You can withdraw your money at any time. Withdrawals before age 59 1/2 could be subject to an IRS early distribution charge of 10%.

At age 59 1/2, at separation from service, or other qualifying event. Withdrawals before age 59 1/2 could be subject to an IRS early distribution charge of 10%.

Do I have to take required minimum distributions?

You must start taking distributions by April 1 following the year in which you turn age 70 1/2 and by December 31st of later years.

You must start taking distributions by April 1 following the year in which you turn age 70 1/2 and by December 31st of later years unless you are still currently employed by the employer that sponsors your plan.

TRADITIONAL IRA
vs.
403b/401k​

Who Can Contribute?

Traditional IRA

You can contribute if you (or your spouse if filing jointly) have taxable compensation but not after you are age 70 1/2 or older

403b / 401K Plans

You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts (see 2014 and 2015 limits)

Are my contributions tax deductible?​

Traditional IRA

You can deduct your contributions if you qualify.

403b / 401K Plans

Your contributions are deductible.

How much can I contribute?​​

Traditional IRA

The most that you can contribute to all of your traditional and Roth IRAs is the smaller of:

  • $5,500 (for 2018) or $6,500 if you’re age 50 or older by the end of the year
  • Your taxable compensation for the year

403b / 401K Plans

$18,500 up to age 50

$24,500 over age 50

What is the deadline to make contributions?​​

Traditional IRA

Your tax return filing deadline (not including extensions). For example, you have until April 15, 2015 to make your 2014 contribution.

403b / 401K Plans

Contributions must be made through payroll.

When can I withdraw money?​

Traditional IRA

You can withdraw your money at any time. Withdrawals before age 59 1/2 could be subject to an IRS early distribution charge of 10%.

403b / 401K Plans

At age 59 1/2, at separation from service, or other qualifying event. Withdrawals before age 59 1/2 could be subject to an IRS early distribution charge of 10%.

Do I have to take required minimum distributions?

Traditional IRA

You must start taking distributions by April 1 following the year in which you turn age 70 1/2 and by December 31st of later years.

403b / 401K Plans

You must start taking distributions by April 1 following the year in which you turn age 70 1/2 and by December 31st of later years unless you are still currently employed by the employer that sponsors your plan.

Start planning today.

We'll help with all of the hurdles and roadblocks to retirement.