Roth IRA Proposal Roth IRA Proposal

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					                            Roth IRA Proposal

Dear Employer,

We appreciate the opportunity to present the Roth IRA as an after-tax payroll deduction slot. The
Roth IRA is a qualified plan under the IRS Retirement Plan code, although, unlike 401(k)s and 457
Deferred Compensation Plans, there are no Plan Documents and it is funded with after-tax, not pre-
tax dollars. This means that the contributions are not listed on the employee’s W-2 form and the
employer is not required to do any reporting to the IRS. The employee is responsible for reporting
any contributions on that year’s 1040 income tax form and making sure they do not exceed the IRS
maximum contribution amount.

The Roth IRA also complements an employee’s 401(k) or 457 Deferred Compensation Plan. Since
it is funded with after-tax dollars, any growth in the account accessed at retirement is tax free (as
long as you’ve held the account for five years and are over 59 ½); whereas the employee’s 401(k)
or 457 Deferred Compensation Plan is tax-deferred – taxes will have to be paid on any money
received at retirement. The tax-free feature is an attractive one. An employee may be eligible to
participate in both plans.

Another advantage to adding a Roth IRA as a payroll deduction is its portability. As you well know,
most employees no longer stay with the same employer their entire career – they are more mobile.
The Roth IRA is totally portable, meaning once employees leave service, they may simply choose
to continue contributing through periodic deposits or a monthly bank draft from their own checking
or savings account. 401(k)s and 457 Deferred Compensation Plans can be rolled into another
employer’s qualified plan for continued payroll deduction, but the employee cannot make personal
contributions should they work for an employer who does not offer that plan.

The Roth IRA offered does not participate in the stock market, offers guarantees and competitive
interest rates, and is backed by financial strength. An employee can open a Roth IRA account with
as little as $50 per month—which comes out to only $12.50 per week or $25 bi-weekly, depending
on how employees are paid.

We believe that the addition of the Roth IRA would fit well with your employee benefit package and
would reinforce employer-employee relations.

Thank you for your consideration.

Best Regards,

Lisa L. Coker
Joy S. Blount
Margo S. Odom

                         Lisa L. Coker            Joy S. Blount          Margo S. Odom
                         (352) 409-4402            (352) 255-3306          (352) 255-4999

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