There is no annual discrimination or top heavy testing required for plan, no IRS filing, no 5500 reporting. Employees salary reduction is made on a pre-tax basis and excludable from current income tax. Distributions are generally taxed under rules governing IRAs Participants direct their own investments within different asset classes within a family of mutual funds and or variable annuities. Both employer and employee contribution can only come directly from employer and these contributions are sent directly to participant accounts at the mutual fund, variable annuity company. Participants can transfer their monies toll free between mutual funds investment account, and or variable annuity sub accounts, at no cost.
Participants directly receive monthly statements and trade confirmations on any account switches.
For complete information including charges and expenses obtain a prospectus, and read it carefully before you invest. Mutual Fund, Variable Annuity and Variable Life prospectuses are available directly from the issuing companies, from Northeast Securities, is included when product information is requested, and in some cases, they be downloaded directly on the issuing company's internet website. Systematic and dollar cost averaging within Mutual Funds, Variable Annuities and Variable Life insurance policies does not assure a profit and does not protect against loss in declining markets. It involves continuous investment in securities regardless of fluctuating prices and the investor should consider his or her financial ability to continue purchases through periods of low price levels. Investing in stocks, bonds, mutual funds and variable annuities does not guarantee a profit.