401(k) & 457 Plans Roth & Traditional IRAs

1y ago
51 Views
2 Downloads
830.13 KB
6 Pages
Last View : 1m ago
Last Download : 2m ago
Upload by : Axel Lin
Transcription

Utah Retirement SystemsP E R F O R M A N C EU P D A T EA SO FD E C E M B E R3 1 ,2 0 0 4401(k) & 457 PlansR o t h & Tr a d i t i o n a l I R A sInvestment Options2005C h a r t i n g Yo u r C o u r s ew w w. u r s . o r g

U t a hPlan Aheadto Get Ahead!401(k)R e t i r e m e n t457Lower tax bill now!Roth IRATraditional IRATax-free growth!Tax deferred growth!Tax deferredTax deferredAfter-tax depositsMay be tax-deductiblePay income taxwhen withdrawnPay income taxwhen withdrawnTax-freewithdrawalsPay income taxwhen withdrawnDepositsPayroll-deduction(if allowed by employer) RolloversTransfers Personal deposits(certified check or money order)Withdrawals TerminationAge 59 1/2 if Hardship still employedPenalty-Free WithdrawalsS y s t e m sTerminationAge 70 1/2 ifAny time Any timestill employed UnforeseeableEmergencyYes – if withdrawnYesContributions: YesEarnings: Yes – ifafter age 59 1/2 , orif you work into thethe calendar yearyou turn age 55Loan Provision the account has beenopen more than 5years and if withdrawnafter age 59 1/2 or forexceptions such as first home higher education payout based onlife expectancyYes – if withdrawnafter age 59 1/2 or forexceptions such as first home higher education payout based onlife 06 14,000 15,000 14,000 15,000 4,000 4,000 4,000 4,000With Age 50 Catch-UpProvision20052006 18,000 20,000 18,000 20,000 4,500 5,000 4,500 5,000Special457 Catch-UpProvisionThe three years prior to the year youqualify to retire, your limit on 457 contributionsis double the standard limit (depending on pastcontributions). For example, you could contribute 28,000 in 2005; 30,000 in 2006, etc.Note: You cannot use the 457 “Age 50 Catch-Up”the same period as the “Special Catch-Up.”Watch Your Money Grow 10,000 Invested for 10 YearsThis chart shows how much moneyyou would have at the end of 2004if you had invested 10,000 onDecember 31, 1994, in the followingfund options: 35,00030,000 29,96825,000 25,62120,00015,000Stock Index Fund (S&P 500)Balanced Fund (Stock and Bond Mix)Income Fund (Stable Value)10,000Based on returns shown on the preceding pages.0 4

The URS Fact Sheets,which provide moredetailed informationabout each fund, areavailable on our website at www.urs.org.Horizon FundsA Horizon Fund asset allocation is designed to help those who want to diversify their portfolios. If you selectone of the three Horizon Funds, your balance or contributions will be allocated to the indicated investmentoptions. The Horizon Funds will automatically rebalance quarterly when target ranges are exceeded.ShortMediumLongThe Short Horizon Fund isdesigned for investors withan investment time frame of5 years. This fund provides arelatively conservative investmentwith a more stable rate of return.However, with reduced marketrisk, there is generally a lowerrate of return over longerperiods of time.The Medium Horizon Fund isdesigned for investors planningto withdraw their funds in5 to 10 years. This fundemphasizes moderate risk andmoderate earnings potential.It has more risk than the ShortHorizon Fund but less than theLong Horizon Fund.The Long Horizon Fund isdesigned for investors with10 or more years to investbefore withdrawing their funds.This fund offers the potential forhigher returns over a long periodof time. There is higher marketrisk with the Long Horizon Fund,along with higher potentialreturns.Bond (45%)Bond (20%)Value (10%)Value (10%)Index (15%)Growth(10%)Index (25%)Horizon FundHorizon FundIncome(20%)Bond (65%)Index (10%)Horizon FundGrowth onal(5%)Small Cap (10%)Small Cap (5%)Average Annual Returnsfor Periods Ended Dec. 31, 2004Average Annual Returnsfor Periods Ended Dec. 31, 2004Average Annual Returnsfor Periods Ended Dec. 31, Years4.9%6.2%4.9%8.9%6.8%2.8%11.4%7.1%1.2%Annual Returns forPeriods Ended December 31Annual Returns forPeriods Ended December 31Annual Returns forPeriods Ended December nce1995*Fund Perfisted he1996*-5.8%al returnsants.historic24.5%ed. The of URS participindicatnce18.1%the periodnt the experieants during represeparticip and do noterto URSmanagofferedwas not current moneythe*This fundCapLargeScaleCapGrowthLargeRewardCapRisk /IndexLargeValueLongnHorizoedBalancmMediu ncome-6.8%-10% -9.0%-15%-13.6%98 99 00 01 02 03 0498 99 00 01 02 03 0498 99 00 01 02 03 04 Past performancedoes not guaranteefuture results.LOWLOWLOWRISK / REWARDHIGHRISK / REWARDHIGHHIGHRisk is definedas the frequency andseverity of fluctuationin the fund’s value.RISK / REWARD

U t a hR e t i r e m e n tS y s t e m sIncomeFundBondFundBalancedFundLarge Cap StockValue FundThe Income Fund is a stable valueoption and the most conservativeof the investment choices.Approximately 50% is investedin products consisting of fixedincome securities (e.g., corporatebonds, Treasury debt) insured by athird party, which reduces risk andsmooths return fluctuations. Theremaining amount is invested inmoney market and similar funds.The Bond Fund invests in adiversified portfolio consistingof U.S. government obligations,mortgage and asset-backedsecurities, corporate bonds, andshort-term funds. This fund’sreturns are affected by changesin interest rates.The Balanced Fund invests in aportfolio consisting of approximately 60% stocks, 35% bonds,and 5% short-term funds. Thisfund is considered less risky thanmost stock investments but hashigher risk than most fixedincome investments.The Large Cap Stock Value Fundinvests in a diversified portfolioof common stocks that appearto be undervalued by the stockmarket but have a favorableoutlook for long-term growth.Investment ManagerAmerican ExpressInvestment ManagerDodge & CoxInvestment ManagersDodge & Cox / Alliance CapitalInvestment ManagerDodge & CoxSample of Portfolio SecuritiesAET Federal Income FundAET Money Market FundInvestment ContractsSample of Portfolio SecuritiesUS Treasury and Gov’t. AgencyFord Motor CreditAT&T Corp.Sample of Portfolio SecuritiesMcDonald’sHewlett-PackardGeneral Electric BondsSample of Portfolio SecuritiesFedExComcastDow ChemicalAverage Annual Returnsfor Periods Ended Dec. 31, 2004Average Annual Returnsfor Periods Ended Dec. 31, 2004Average Annual Returnsfor Periods Ended Dec. 31, 2004Average Annual Returnsfor Periods Ended Dec. 31, 200413510Year Years Years Years13510*Year Years Years Years135*10*Year Years Years Years3.4% 4.3% 5.1% 5.8%3.5% 6.5% 8.0% 8.1%13510Year Years Years Years9.9% 6.0% 4.5% 9.9%19.0% 12.0% 12.4% 16.9%Annual Returns forPeriods Ended December 31Annual Returns forPeriods Ended December 31Annual Returns forPeriods Ended December 31Annual Returns forPeriods Ended December 0.2%20%20.2%19.0%16.3%15.1%15%10%7.6%%6.3% 6.3% 6.3% %6.2% 6.75.65.5%9.9%9.2%7.5%7.1%5.8%3.9% %3.45%11.9%10.4% InvestmentManagerReturns*LOWLOWRISK / REWARD-10.7%95 96 97 98 99 00 01 02 03 04HIGHRISK / REWARD95 96 97 98 99 00 01 02 03 04HIGHHIGHHIGHRISK / REWARD95 96 97 98 99 00 01 02 03 04LOW95 96 97 98 99 00 01 02 03 04InvestmentManagerReturns*LOW-10%-15%RISK / REWARD*These funds were not offered to URS participants during the periods indicated. The historical returns

Large Cap StockIndex FundLarge Cap StockGrowth FundInternationalFundSmall CapStock FundThe Large Cap Stock IndexFund invests in stocks includedin the S&P 500 Index. Thisindex is widely regarded asthe standard for measuring theperformance of large capitalization stocks. The Large Cap StockIndex Fund represents a broadrange of industries in the U.S.economy.The Large Cap Stock GrowthFund emphasizes capital appreciation and seeks to identifycompanies with future relativeearnings strength at a reasonable valuation. The portfoliois actively managed to reactquickly to changing companyfundamentals and prevailingmarket forces.The International Fund investsprimarily in stocks of companiesoutside the United States.The fund generally emphasizesstrong, well-managed companies in Europe, Canada, Australia, and the Far East. Thisfund offers international diversification but adds currency riskand country risk not found ina domestic fund.The Small Cap Stock Fund isinvested in a broad cross-sectionof U.S. small companies whosesize (market capitalization) fallswithin the smallest 8% of themarket universe. The marketuniverse is comprised of companies listed on the NYSE, AMEX,and NASDAQ.Investment ManagerUtah Retirement SystemsInvestment ManagerAlliance CapitalInvestment ManagerCapital Guardian TrustInvestment ManagerDimensional Fund AdvisorsSample of Portfolio SecuritiesIBMExxon MobilWal-MartSample of Portfolio SecuritieseBayYahoo!LowesSample of Portfolio SecuritiesVodafone (UK)Royal Dutch Petroleum(Netherlands)Novartis (Switzerland)Sample of Portfolio SecuritiesAsk Jeeves Inc.Tesoro PetroleumInfoSpace Inc.Average Annual Returnsfor Periods Ended Dec. 31, 2004Average Annual Returnsfor Periods Ended Dec. 31, 2004Average Annual Returnsfor Periods Ended Dec. 31, 2004Average Annual Returnsfor Periods Ended Dec. 31, 200413510Year Years Years Years10.5% 3.3% -2.6% 11.6%13510*Year Years Years Years13510Year Years Years Years13510*Year Years Years Years7.4% -2.9% -10.9% 12.1%14.3% 9.5% -2.5% 10.5%17.6% 12.9% 10.7% 14.2%Annual Returns forPeriods Ended December 31Annual Returns forPeriods Ended December 31Annual Returns forPeriods Ended December 31Annual Returns forPeriods Ended December 10.5%10%7.4%5%2.4%0%-5%-5.8%-22.1%95 96 97 98 99 00 01 02 03 04-21.2%-29.9%95 96 97 98 99 00 01 02 03 04RISK / REWARDlisted here are for the current money manager and do not represent the experience of URS participants.-19.2%95 96 97 98 99 00 01 02 03 04HIGHRISK / REWARD95 96 97 98 99 00 01 02 03 04HIGHLOW-22.2%HIGHHIGHRISK / 0%-15%RISK / REWARD

URS Web Site:w w w. u r s . o r gmyURSFinancial Markets (as of December 31, 2004)Below are some indices that can be used for comparative purposes:Manage your retirement accountonline anytime! Here’s easury Bills Index1.33%1.42%2.95%4.11%Lehman Aggregate Bond Index4.33%6.19%7.71%7.72%Russell 1000 Value Index16.49%8.57%5.27%13.83%S&P 500 MSCI EAFE Index (International)20.25%11.89%-1.14%5.62%Russell 2000 Index (Small Cap)18.33%11.48%6.61%11.54%General Market Rates of ReturnRussell 1000 Growth Index1Set up your URS PIN.(if you don’t already have one)Call (800) 688-4015 to set up yourPIN. Select option 1 and follow theprompts.2Visit the URS web site atwww.urs.org and click “myURS.”3Enter your URS ID.(typically your Social Security Number)4Enter your URS PIN.(the number you set up via the phone)5Then click “Log On.”These indices are for comparative purposes only. They are not indicative of the rates of return you shouldexpect from the funds in your defined contribution plans.The investments described in this Performance Update are not FDIC insured; notdeposits or obligations of, or guaranteed by,any financial institution; and not guaranteedby the Utah Retirement Systems or anygovernment agency.The past performance of any of these fundsdoes not guarantee future results.Utah Retirement Systems’ employees arenot registered securities advisors. They cannotoffer investment advice or make recommendations. Because you make the investment decisions about your account, the plan’s sponsor,trustees, and others associated with the investments may be relieved of liability for investment performance.The investment managers shown in thisPerformance Update are as of December 31,2004. Utah Retirement Systems reserves theright to change investment managers as needed.Further information for each fund is available on the web at www.urs.org, or by calling(801) 366-7720 or (800) 688-401k.It’s as easy as that!Low Annual FeesShort-termTrading FeeBecause of costs generated by frequent tradingand the potential impacton other participants'accounts, it is necessary toimpose a short-term trading fee. Individuals, whotransfer any or all of theircurrent account amonginvestment options moreoften than once every30 days, will be charged2% of their total planbalance for each additional trade. Each transferstarts a new 30-dayperiod. Each savings planis treated individually; forexample, transfers in your401(k) will not affect yourability to transfer funds inyour 457 plan.The fees shown here are deducted fromearnings prior to posting and do not appear asseparate items on your statement. Before youinvest in any program, you should thoroughlyinvestigate all eesTotalAnnualFeesIncomeBondBalancedLarge Cap Stock ValueLarge Cap Stock IndexLarge Cap Stock GrowthInternationalSmall Cap StockShort HorizonMedium HorizonLong 64%.65%.71%.30%.61%.62%.68%.56%.59%.56%The Group Annuity Fund, which is closed to further contributions, is subject to 1.13% in annual investment fees and .27%in annual administration fees for a total of 1.4% in annual fees.Note: An annual account maintenance fee of 15 will beassessed to inactive accounts with combined 401(k) and 457plan balances of less than 5,000.UTAH RETIREMENT SYSTEMSDefined Contribution Department560 East 200 South, Suite 200 Salt Lake City, Utah 84102(801) 366-7720 (800) 688-401kSouthern Utah Branch Office165 North 100 East #9 St. George, Utah 84770(435) 673-6300 (800) 950-4877www.urs.orgRevised 3/2005

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

Related Documents:

Tee - Reducing (continued) Socket x Socket x Socket 401-422 4X3 6 0 040 77.83 401-4261 4X6 4 0 040 419.22 401-4281 4X8 2 0 040 1157.12 401-4861 5X2 5 0 040 182.51 401-4871 5X2-1/2 4 0 040 200.79 401-488 5X3 4 0 040 182.51 401-490 5X4 3 0 040 182.51 401-4921 5X6 4 0 040 428.13 401-4941 5X8 1 2 040 1472.94 401-5261 6X1-1/4 6 0 040 267.96 401-5271 .

PSI AP Physics 1 Name_ Multiple Choice 1. Two&sound&sources&S 1∧&S p;Hz&and250&Hz.&Whenwe& esult&is:& (A) great&&&&&(C)&The&same&&&&&

Deferred Compensation and Thrift Plan 2ND QUARTER 2020 What's Inside: 401(k) Savings Plan In The News C O U N T Y OF L S A N G E L E S Looking Ahead 457(b) Horizons & 401(k) Savings Plans AlwayˆLA AlwayˆLA 457(b) Horizons & 401(k) Savings Plans C O U N T Y OF L S A N G E L E S Looking Ahead C O U N T Y O F LO S A N G E L E S Looking Ahead .

Argilla Almond&David Arrivederci&ragazzi Malle&L. Artemis&Fowl ColferD. Ascoltail&mio&cuore Pitzorno&B. ASSASSINATION Sgardoli&G. Auschwitzero&il&numero&220545 AveyD. di&mare Salgari&E. Avventurain&Egitto Pederiali&G. Avventure&di&storie AA.&VV. Baby&sitter&blues Murail&Marie]Aude Bambini&di&farina FineAnna

The program, which was designed to push sales of Goodyear Aquatred tires, was targeted at sales associates and managers at 900 company-owned stores and service centers, which were divided into two equal groups of nearly identical performance. For every 12 tires they sold, one group received cash rewards and the other received

retirement planning aswell as your overall financial strategy. Important news about your 457(b) & 401(a) Plan accounts The Iowa Retirement Investors' Club (RIC) is committed to helping you save toward a financially independent retirement. As part of that effort, the RIC is making changes to the investments in the 457(b) & 401(a) Plans.

Transfer to State Plan to purchase service credits No No 457(b) vs. 457(f) FEATURES OF Tax-Exempt 457(b) Tax-exempt 457(f) Distributable Events Based on document and employee elections Generally lump sum or over 5 years; based on document Loans Permitted No No RMD Rules Yes. Later of 4/1 after 70 ½ or retirement Not applicable

401(k) plan account balances rise with participant age and length of time on the job. 14 FACT 7 401(k) plans offer participants a wide array of investment options. 16 FACT 8 Equities figure prominently in 401(k) plans, especially among younger 401(k) investors. 18 FACT 9 401(k) plan participants have concentrated their assets in lower-cost funds.