Retirement Savings Options
Providing retirement savings plans for your employees is a part of a well-rounded benefits package and can help attract and retain quality employees. 403(b) and 457(b) Plans are popular Internal Revenue Code (IRC) retirement plan types used by schools. American Fidelity offers annuities as investment funding vehicles under these IRC retirement plans as well as Individual Retirement Accounts (IRAs).
Annuities Provide Growth Potential and Flexibility
American Fidelity offers a variety of annuities that can be used as investments within a 403(b), 457(b), IRA or Roth IRA plan to help individuals plan for retirement. American Fidelity also offers annuities as non-qualified, after-tax annuities for personal retirement savings. Annuities provide a valuable savings vehicle with growth potential and flexibility. A key advantage that annuities offer over typical methods of saving is the opportunity for guaranteed lifetime income. Annuities can provide benefits and features that may be beneficial to a diversified portfolio and can be a valuable retirement planning tool.
- Fixed Annuity: An insurance contract that allows the owner to accumulate interest with minimal risk. American Fidelity guarantees both the principal and interest on our fixed contracts and there is a guaranteed minimum rate of interest which the contract will never pay less than, as long as the contract is in force.
- Variable Annuity: This contract allows the potential for greater returns on investments over the long term by allowing the owner the ability to invest in various market-based portfolios. In a variable contract, principal, interest, and market gains are not guaranteed and are therefore not suitable for everyone.
Employer-Sponsored Plan Options: 403(b) and 457(b) Plans
403(b) and 457(b) Plans are the most common plans offered by school districts. These voluntary retirement plans allow employees to contribute money through pre-tax contributions via payroll deduction, and allow for employer contributions. The money grows tax-deferred until retirement.
American Fidelity offers 403(b) and 457(b) Plan Administration Services to help keep you compliant.
Personal Savings Options: IRAs
We offer two types of Individual Retirement Accounts (IRAs): IRAs and Roth IRAs. The major differences between these two types of IRAs is the timing of the tax benefit: how contributions are made, or when and how distributions are taken. IRAs can be opened and funded without any employer involvement.
Planning for Retirement Requires Education
Often, education employees aren't aware of the personal planning options available outside of the Teacher Retirement System.
Our account managers provide one-on-one education to help employees find the retirement plan that best fits their needs. Offering options and making employees aware can help with satisfaction and retention, and it’s an added convenience for you and your staff.
Retirement Readiness Seminars Available
Through a Retirement Readiness Seminar, American Fidelity can help:
- Increase awareness of retirement income options
- Review state retirement system expectations
- Discuss Social Security and Medicare eligibility, timelines, and sources