Tax Deferred Annuity Loan Program - New York City
KOFORBOAROF EDVCANTIOCITYDNEWYBoard of EducationRetirement SystemTAX DEFERRED ANNUITY LOAN PROGRAM
Board of Education Retirement SystemMembers of the Board of Education Retirement System (BERS) who elect toIntroductionparticipate in the Tax Deferred Annuity (TDA) are eligible for the TDA loanprogram. This pamphlet highlights the important features of the TDA Loan Program.The TDA Loan Program is separate and apart from any other loan program inwhich you may be eligible to participate. Other BERS loan programs include theQualified Pension Plan (QPP) and the Early Retirement Loan Programs. The TDAloan program is administered in accordance with IRS Rules and Regulations, NewYork State Education Law, the Administrative Code of the City of New York andadministrative provisions adopted by BERS and its Board of Trustees.A TDA loan a participant loan that reduces your TDA account by the amount of theloan plus the service charge. As payments are made, the principal and interest areadded back into your account. When the loan check is drawn, your account balanceis reduced.TAX DEFERRED ANNUITY LOAN PROGRAM1
Board of Education Retirement SystemEligibilityIf you are a member and a TDA participant in active service or on an approved leaveof absence, have at least one year of TDA participation or you are vested or retiredwith TDA Deferral status, have not taken a TDA Loan in the last 12 months and arenot in default in any BERS loan program, you may be eligible to take a loan.Minimum LoanAmountThe minimum Loan amount that you can borrow is 1,000. If you have an existingloan, the minimum amount that you can borrow is 250 provided that the sum of theexisting loan and the new loan total 1,000Maximum LoanAmountIf you have five or more years of credited service, your maximum available loan isthe lesser of (a) or (b) below. If you have less than five years of credited service, yourmaximum available loan is the least of (a), (b) and (c) below:(a) 50,000 minus your highest combined loan balance during the last 12 monthsfrom any employer-sponsored loan program. These include the QPP, EarlyRetirement, and TDA loan programs, as well as the New York City DeferredCompensation Plan Loan Programs (457 and 401(k));(b) 75% of your TDA Account less any current outstanding loan balance on yourTDA Loan; or(c) The greater of (1) 50% of your QPP, Early Retirement, TDA, 457 and 401(k)Accounts or (2) 10,000 less your current combined outstanding loan balances.NOTE – When your loan is processed, your TDA accounts will be automaticallydebited based on your fixed and variable account balances (and any transfers inprocess), at the time of the loan.Interest RateThe interest rate of TDA loans is currently 7.00% per annum for United Federationof Teachers (UFT) members on loans issued after the date April 16, 2010. For otherTDA participants, the interest rate on basic TDA loans is 8.25% on loans taken afterJuly 1, 1988.Service ChargeThere is a 50 non-refundable service charge to process or recalculate a loan.This charge will be considered an additional loan amount when calculating therepayment and duration. For example, if you are eligible for a 50,000 loan, you willreceive a check or Electronic Funds Transfer (EFT) for 49,950 to avoid exceedingthe 50,000 maximum when the 50 charge is added to the loan. If you are eligiblefor and request a loan of 10,000, you will receive a check or EFT for 10,000.Repayments will be calculated on 10,050 (the loan amount plus the 50 charge.)When you apply for a loan, you have the option of paying the charge by certified checkor money order (personal checks will not be accepted) to avoid having the chargeincluded in the monthly repayment amount.Once your loan application is processed, the loan cannot be cancelled.2TAX DEFERRED ANNUITY LOAN PROGRAM
Board of Education Retirement SystemTDA loans are fully insured 30 days after the loan is distributed to you. Onceyour loan is insured, in the event of your death, any outstanding loan balancewill be liquidated, that is, it will be repaid by the insurance program. The insurancerate is currently 0.4% per annum. The insurance premium is considered whencalculating your repayment amount when you apply for a loan. If you fail to repayyour loan, it will default and the insurance on your loan will cease.Loan InsuranceThe maximum repayment period for TDA loans is 60 months. The amountborrowed, together with interest, insurance and service charge is repaid in regularinstallments over the period selected by you up to 60 months. Special circumstancesare applicable if you are on active military duty in the United States armed forces. Youmay not have to repay any loan for up to 60 months after the loan is initiated. If youare on active military duty, contact BERS to discuss your repayment options.Duration andRepaymentRepayments are generally made through payroll deductions. If deductions fromyour paycheck do not begin on the date indicated in the letter notifying you of therepayment terms, please contact BERS immediately to ensure that the repayments arescheduled and your loan does not default. It is your responsibility to notify BERS ofchanges in your payroll status which may interfere with loan repayment deductionsfrom your paycheck.If you have an outstanding loan and you are not receiving regular paychecks (that is,you are on an approved leave of absence without pay or you are a part-time employeeon the T Bank payroll), you must request to make monthly repayments directly toBERS. Monthly payments made directly must agree with the amount calculated whenthe loan is initiated.When calculating your loan payment based on the duration you selected, therepayment amount cannot be less than 2% or your gross salary per paycheck.A lump sum repayment option to pay off an outstanding loan balance is available.If you wish to make a lump sum repayment, contact BERS and request a lump sumpayment amount and repayment due date. Partial repayments over your calculatedrepayment amount are allowed but will result in a 50 fee to recalculate a new loanrepayment amount.If no repayments are received within any 90-day period, your loan will go into default.If your loan goes into default, the loan will no longer be insured. Also, the outstandingbalance will be treated as a distribution and will be reported to the InternalRevenue Service. You will receive an IRS 1099-R Form for the taxable portion of thedistribution. There may be tax consequences associated with this distribution.TAX DEFERRED ANNUITY LOAN PROGRAMDefault3
Board of Education Retirement System4RetirementIf you retire and become a TDA Deferral with an outstanding loan balance youmust request to make monthly loan repayments directly to BERS. If no paymentsare received in any 90 day period the outstanding loan balance will be in default andconsidered a distribution. If a distribution occurs, you will receive a 1099R that willalso be reported to the Internal Revenue Service. There may be tax consequencesassociated with this distribution.Separationfrom Service:Resignation orTerminationIf you resign or are terminated and you have an outstanding loan, you should requestto make monthly repayments directly to BERS before you are removed from activepayroll status. If no loan repayments are received in any 90-day period, your loan willgo into default.Transfer ofMembershipto AnotherRetirementSystemIf you transfer your BERS membership to another public retirement system, youroutstanding loans will also be transferred, provided the new retirement system is willingto accept the outstanding loans. If the new system cannot accept the outstandingloan, you must make a lump sum payment to BERS within 90 days. Otherwise, theoutstanding loan will be considered a distribution.DeathIf you have an outstanding loan balance at the time of your death, your loan will beliquidated according to the insurance provisions provided herein.LoanInformationYour semi-annual Statement of Accounts includes information concerning yourloan activities, availability and status. You may also request a loan inquiry from BERSat any time during the year.TAX DEFERRED ANNUITY LOAN PROGRAM
The Interest Rate, Service Charge and Insurance Premium are subject to change onnew loans. Please contact BERS to obtain the current rates.This information should not be considered legal or tax advice. For such advice, wesuggest that you contact your legal or tax consultant. The information provided is basedon our understanding of the IRS Rules and Regulations, New York State EducationLaw, the Administrative Code of the City of New York, and the Administrativeprovisions adopted by BERS. If any of the information provided herein conflicts withany laws, rules and regulations, it is the laws, rules and regulations that will govern.TAX DEFERRED ANNUITY LOAN PROGRAM5
KOFORBOAROF EDVCANTIOCITYDNEWYBoard of Education Retirement System65 Court Street16th FloorBrooklyn, New York 11201-4965929.305.3800800.843.5575 (outside New York State)7/18/2017TAX DEFERRED ANNUITY LOAN PROGRAM
Retirement, and TDA loan programs, as well as the New York City Deferred Compensation Plan Loan Programs (457 and 401(k)); (b) 75% of your TDA Account less any current outstanding loan balance on your TDA Loan; or (c) The greater of (1) 50% of your QPP, Early Retirement, TDA, 457 and 401(k)
Ordinary Deferred Annuity - when deferral period ends one payment interval before the first periodic payment. The future value of a deferred annuity - is the accumulated value of the stream of payments at the end of the annuity period. This is the same procedure as future value of an ordinary annuity (both simple and general annuity).
401(k) 457 Roth IRA Traditional IRA Lower tax bill now! Tax-free growth! Tax deferred growth! Tax deferred Tax deferred After-tax deposits May be tax-deductible Pay income tax Pay income tax Tax-free Pay income tax when withdrawn when withdrawn withdrawals when withdrawn Deposits Payroll-deduction (if allowed by employer) Rollovers
6. Loan geography 8. 7. Contractual cash flows for each loan or pool of loans Risk System Data: 1. Loan classes and grades 2. Modification history by loan class 3. Loan renewal and funding history by loan class 4. Loan prepayments history by loan class 5. Loan cash flows not collected 6. Loan grade LGD and PD rates 7. Loan grade charge-off history
simultaneously. One of these annuities is Annuity Care II from The State Life Insurance Company. How it works Annuity Care II is a single premium fixed interest deferred annuity that combines long-term asset growth and LTC benefits. This protection is built-in to the annuity, providing a combination of the annuity
tax. For a non-qualified annuity, only the gains are subject to income tax. If you are under age 591/2, the taxable amount withdrawn from a qualified or non-qualified annuity is generally subject to a 10% federal penalty tax. One of the benefits of an annuity is the opportunity for your money to grow tax deferred.
VARIABLE ANNUITY PLUS PROSPECTUS FOR A FLEXIBLE PREMIUM VARIABLE DEFERRED ANNUITY Issued by Genworth Life and Annuity Insurance Company "QSJM , 20 Genworth Life & Annuity VA Separate Account 1 13739 0 / / STOP THE PAPER! VISIT
First Choice Bonus Annuity An Individual Flexible Premium Variable Deferred Annuity Contract With Bonus Payments May 1, 2021 Nassau Life Insurance Company This prospectus is for the First Investors Life Variable Annuity Fund D (Separate Account D) Contract, which we call First Choice Bonus Annuity.
a paper airplane at another person, animal or object as . paper can be sharp or pointy. DIRECTIONS: Print these pages on regular paper. 1-2). With the white side of the first rectangle you choose facing you, fold the rectangle in half and unfold it so the . paper lays flat again. Now, fold the left two corners towards you. 3). Fold the triangle you created with the first set of folds towards .
