| What to invest in after maxing out 401k and Roth IRA? |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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Ima Floridian, too.
So it works just like a Roth until you 'convert' it to an annuity and withdraw interest payments from it?
Which IRS code allows it to be tax-deferred?
"Expect me when you see me."
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Thu Apr 14, 2005 12:16 am |
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khorne55
Contributing Member
Cash: $ 1.44
Posts: 49
Joined: 31 Jan 2005
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quote:
Originally posted by Rolo
Ima Floridian, too.
So it works just like a Roth until you 'convert' it to an annuity and withdraw interest payments from it?
Which IRS code allows it to be tax-deferred?
The IRS code is rather complicated of course. You can real about it here:
http://www.irs.gov/publications/p575/ar02.html#d0e290
Much of the language is geared towards equal monthly payments but you have several withdrawal options.
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Thu Apr 14, 2005 2:07 am |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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quote:
Originally posted by IRS
Tax-sheltered annuity plan. A tax-sheltered annuity plan (often referred to as a 403(b) plan or a tax-deferred annuity plan) is a retirement plan for employees of public schools and certain tax-exempt organizations. Generally, a tax-sheltered annuity plan provides retirement benefits by purchasing annuity contracts for its participants.
How can you get 403(b)-like status if you are not employed as a teacher, etc.? (Sorry...this just isn't clickin' in me head, heh)
"Expect me when you see me."
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Thu Apr 14, 2005 11:54 pm |
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khorne55
Contributing Member
Cash: $ 1.44
Posts: 49
Joined: 31 Jan 2005
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quote:
Originally posted by Rolo
quote:
Originally posted by IRS
Tax-sheltered annuity plan. A tax-sheltered annuity plan (often referred to as a 403(b) plan or a tax-deferred annuity plan) is a retirement plan for employees of public schools and certain tax-exempt organizations. Generally, a tax-sheltered annuity plan provides retirement benefits by purchasing annuity contracts for its participants.
How can you get 403(b)-like status if you are not employed as a teacher, etc.? (Sorry...this just isn't clickin' in me head, heh)
Sorry, I am not good at explaining things. Here is some info that may clear things up a bit.
http://www.bankrate.com/brm/news/investing/20010807a.asp
There are several articles on annuities at that site, just do a search. Hope this helps!
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Fri Apr 15, 2005 12:08 am |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
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Joined: 05 Oct 2004
Location: Illinois
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Sorry, I hadn't been paying attention to this thread -
A quote from the last article cited:
"One of the major reasons for the steady increase in sales, the financial advisers say, is that annuities have very nice sales commissions."
khorne55 is right, the benefits of a TSA (tax-sheltered annuity) program are similar to those of other tax-deferral programs, but the costs are (often) outrageous.
If you're interested in looking at these programs, dig in to the details to understand the costs - both up-front and on an on-going basis. As the article states, look to low-cost providers like TIAA-CREF and Vanguard, but still keep your guard up.
Jim Blankenship, CFP®, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Fri Apr 15, 2005 12:12 pm |
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