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401K Tax Calculator - PDF - PDF

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401K Tax Calculator - PDF - PDF Powered By Docstoc
					                                                                           U R S           S A V I N G S             P L A N S



Plan Ahead                                         401(k)                             457                Traditional IRA                       Roth IRA
to Get Ahead!                                Tax deferred
                                                           Lower tax bill now!
                                                                              Tax deferred
                                                                                                         Tax deferred growth!
                                                                                                         May be tax-deductible
                                                                                                                                          Tax-free growth!
                                                                                                                                           After-tax deposits
                                            Pay income tax                   Pay income tax                Pay income tax                       Tax-free
                                           when withdrawn                   when withdrawn                when withdrawn                     withdrawals

Deposits

                                                    ✔                                 ✔                           ✔                                ✔
   Payroll deduction
    (if allowed by employer)
    Rollovers                                       ✔                                 ✔                           ✔                                ✔
    Transfers                                       ✔                                 ✔                           ✔                                ✔
    Personal deposits                                                                                             ✔                                ✔
Withdrawals                                 ■   Retirement                  ■    Retirement                   ■   Any time                    ■   Any time
                                            ■   Termination                 ■    Termination
                                            ■   Age 59 1/2 if               ■    Age 70 1/2 if
                                                 still employed                  still employed
                                            ■   Hardship                    ■    Unforeseeable
                                                                                 Emergency

Early Withdrawal                            Yes – 10% early                           No                  Yes – if withdrawn              Contributions: No
Penalty Tax                                 withdrawal penalty                                            before age 59 1/2.              Earnings: Yes –
                                            tax if withdrawn                                              Exceptions:                     if the account has
                                            before age 59 1/2.                                            ■   first home                  been open less than
                                            Exceptions:                                                   ■   higher education            5 years and if with-
                                            ■   you work into the                                         ■   payout based on             drawn before age 59 1/2.
                                                  calendar year                                                  life expectancy          Exceptions:
                                                  you turn age 55                                         ■   disability                  ■   first home
                                            ■   payout based on                                                                           ■   higher education
                                                  life expectancy                                                                         ■   payout based on
                                            ■   disability                                                                                       life expectancy
                                                                                                                                          ■   disability

Loan Provision                                          Yes                           Yes                           No                                No
Annual                          2009               $16,500                          $16,500                       $5,000                          $5,000
Contribution Limits
With Age 50+                    2009               $22,000                          $22,000                       $6,000                          $6,000
Catch-Up Provision
Special 457                                        The three years prior to the year you qualify to retire, your limit on 457 contributions
Catch-Up Provision                                            is double the standard limit (depending on past contributions).
                                                     Note: You cannot use the 457 “Age 50+ Catch-Up” the same year as the “Special Catch-Up.”


                                    $30,000

  10-Year Fund                         27,500
  Performance                          25,000
   Let’s say that 10 years             22,500
   ago, you invested $10,000
                                       20,000                                                                                                                      $16,386
   in each different URS
                                                                                                                                                                   $16,284
   investment fund. Based              17,500                                                                                                                      $15,875
   on the rounded 10-year
                                       15,000                                                                                                                      $15,803
   rate-of-return shown for
                                                                                                                                                                   $13,713
   each fund on the inside             12,500
                                                                                                                                                                   $12,549
   pages of this brochure,
                                       10,000
   this chart shows what your
                                                                                                                                                                   $8,424
   account (by investment               7,500
   fund) was worth on                                                                                                                                              $6,066
                                        5,000
   Dec. 31, 2008.
                                                 1999         2000        2001        2002       2003     2004        2005         2006        2007        2008
  For illustrative purposes only.      Funds:       Bond         Income          Value*      Small Cap     International       Balanced           Index       Growth

                                        *This fund was not offered to URS participants during the years 1999-2000.
        The historical returns listed during those years are for the current money manager and do not represent the experience of URS participants.

				
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