bartholomew consolidated schools 403(b) plan 401(a) plan vebahsa2015
TRANSCRIPT
Bartholomew Bartholomew Consolidated SchoolsConsolidated Schools
403(B) Plan403(B) Plan
401(A) Plan401(A) Plan
VEBAVEBA
HSAHSA
20152015
Two BrothersTwo Brothers BenBen
Graduated from college, started teaching, and got Graduated from college, started teaching, and got married at 22married at 22
Had 2 children within the next 7 yearsHad 2 children within the next 7 years Wife stayed home after second child; went back to work Wife stayed home after second child; went back to work
after second child went to high schoolafter second child went to high school JustinJustin
Also graduated from college, started teaching, and got Also graduated from college, started teaching, and got married at 22married at 22
Had 2 children within the next 3 years; wife stayed homeHad 2 children within the next 3 years; wife stayed home When kids started KG, wife started careerWhen kids started KG, wife started career
ANNUITY GROWTH CHART- TWINS
Assume growth of 9%Ben Justin
Year Age Deposit Deposit1 22 2,000$ -$ 2 23 2,000$ -$ 3 24 2,000$ -$ 4 25 2,000$ -$ 5 26 2,000$ -$ 6 27 2,000$ -$ 7 28 2,000$ -$ 8 29 2,000$ -$ 9 30 -$ 2,000$ 10 31 -$ 2,000$ 11 32 -$ 2,000$ 12 33 -$ 2,000$ 13 34 -$ 2,000$ 14 35 -$ 2,000$ 34 55 -$ 2,000$ 35 56 -$ 2,000$ 36 57 -$ 2,000$ 37 58 -$ 2,000$ 38 59 -$ 2,000$ 39 60 -$ 2,000$ 40 61 -$ 2,000$ 41 62 -$ 2,000$
ANNUITY GROWTH CHART- TWINS
Assume growth of 9%
Year Age Deposit Accum Deposit Accum1 22 2,000$ 2,180$ -$ -$ 2 23 2,000$ 4,556$ -$ -$ 3 24 2,000$ 7,146$ -$ -$ 4 25 2,000$ 9,969$ -$ -$ 5 26 2,000$ 13,047$ -$ -$ 6 27 2,000$ 16,401$ -$ -$ 7 28 2,000$ 20,057$ -$ -$ 8 29 2,000$ 24,042$ -$ -$ 9 30 -$ 26,206$ 2,000$ 2,180$ 10 31 -$ 28,564$ 2,000$ 4,556$ 11 32 -$ 31,135$ 2,000$ 7,146$ 12 33 -$ 33,937$ 2,000$ 9,969$ 13 34 -$ 36,992$ 2,000$ 13,047$ 14 35 -$ 40,321$ 2,000$ 16,401$ 34 55 -$ 225,975$ 2,000$ 203,446$
35 56 -$ 246,313$ 2,000$ 223,936$ 36 57 -$ 268,481$ 2,000$ 246,271$ 37 58 -$ 292,644$ 2,000$ 270,615$ 38 59 -$ 318,982$ 2,000$ 297,150$ 39 60 -$ 347,691$ 2,000$ 326,074$ 40 61 -$ 378,983$ 2,000$ 357,601$ 41 62 -$ 413,092$ 2,000$ 391,965$
Ben Justin
ANNUITY GROWTH CHART- TWINS
Assume growth of 9%
Year Age Deposit Accum1 22 2,000$ 2,180$ 2 23 2,000$ 4,556$ 3 24 2,000$ 7,146$ 4 25 2,000$ 9,969$ 5 26 2,000$ 13,047$ 6 27 2,000$ 16,401$ 7 28 2,000$ 20,057$ 8 29 2,000$ 24,042$ 9 30 2,000$ 28,386$ 10 31 2,000$ 33,121$ 11 32 2,000$ 38,281$ 12 33 2,000$ 43,907$ 13 34 2,000$ 50,038$ 14 35 2,000$ 56,722$ 34 55 2,000$ 429,422$ 35 56 2,000$ 470,249$ 36 57 2,000$ 514,752$ 37 58 2,000$ 563,260$ 38 59 2,000$ 616,133$ 39 60 2,000$ 673,765$ 40 61 2,000$ 736,584$ 41 62 2,000$ 805,056$
Ben
All BCSC employees are eligible for 403(b) All BCSC employees are eligible for 403(b) salary reduction.salary reduction.
Deductions are taken out of 20 pays for non-Deductions are taken out of 20 pays for non-contracted and non-year-round employeescontracted and non-year-round employees
Deductions are taken out of 26 pays for Deductions are taken out of 26 pays for contracted and year-round employees.contracted and year-round employees.
All 3 vendors- Metlife, Valic, and Aspire- will All 3 vendors- Metlife, Valic, and Aspire- will have reps visiting the buildings after the start of have reps visiting the buildings after the start of schoolschool
You can also call and schedule an appointment You can also call and schedule an appointment if you missed themif you missed them
No hardship withdrawalsNo hardship withdrawals No loansNo loans No catchup deferralsNo catchup deferrals Blank salary reduction agreement on BCSC Blank salary reduction agreement on BCSC
website; reps will have copieswebsite; reps will have copies
403(B)
403(B) Investment Choices403(B) Investment Choices
METLIFEMETLIFE Annuities (57 choices)Annuities (57 choices)
$30 Account Fee$30 Account Fee .50% Mortality Fee.50% Mortality Fee No Surrender Fee (except fixed fund)No Surrender Fee (except fixed fund)
Mutual Funds (29 choices)Mutual Funds (29 choices) .28% Account Fee + expense ratio of fund(s).28% Account Fee + expense ratio of fund(s)
403(B) Investment Choices403(B) Investment Choices
VALICVALIC Annuities (29 choices)Annuities (29 choices)
No Account FeeNo Account Fee .75-1.25% Mortality Fee.75-1.25% Mortality Fee No Surrender Fee (except fixed fund)No Surrender Fee (except fixed fund)
Mutual Funds Mutual Funds (Internet Only) (Internet Only) (90 choices)(90 choices) $40 Account Fee + expense ratio of fund(s)$40 Account Fee + expense ratio of fund(s)
403(B) Investment Choices403(B) Investment Choices
ASPire (403b ASP)ASPire (403b ASP) $40 Account Fee + .10% Management Fee + $40 Account Fee + .10% Management Fee +
expense ratio of fund(s)expense ratio of fund(s) 40 Mutual Funds through Edward Jones40 Mutual Funds through Edward Jones Option of Self-directing through 403(b) ASP Option of Self-directing through 403(b) ASP
(Internet Only)(Internet Only)
Thousands of mutual funds to choose fromThousands of mutual funds to choose from Apply on the Aspire website Apply on the Aspire website When account is set up, fill out a BCSC salary reduction When account is set up, fill out a BCSC salary reduction
agreement, sign, and send to Business Officeagreement, sign, and send to Business Office No rep or broker to work withNo rep or broker to work with
ROLLOVERS, EXCHANGES, AND ROLLOVERS, EXCHANGES, AND TRANSFERSTRANSFERS
RolloversRollovers- monies from a previous employer - monies from a previous employer 403(b) or similar plan; check was received403(b) or similar plan; check was received
TransfersTransfers- monies from a previous employer - monies from a previous employer 403(b) or similar plan; directly sent to new 403(b) or similar plan; directly sent to new 403(b) vendor (no cash or check involved)403(b) vendor (no cash or check involved)
Check to see if there are any surrender charges Check to see if there are any surrender charges from the vendor losing the fundsfrom the vendor losing the funds
401(A)401(A)
BCSC matches up to 3% of your base salaryBCSC matches up to 3% of your base salary Monies are sent to Metlife regardless of your Monies are sent to Metlife regardless of your
403(B) vendor403(B) vendor An account will be set up with Metlife for the An account will be set up with Metlife for the
401(A) match401(A) match You invest the monies just like you would in You invest the monies just like you would in
your 403(B)your 403(B) 5 year vesting5 year vesting
403(b) 401(a) 9%
2% 3% 3% (Assumed grow th)
YEARS IN (Assumed grow th) EMPLOYEE EMPLOYER TOTAL TOTALEDUCATION AGE SALARY CONTRIBUTION MATCH CONTRIBUTION VALUE
0 22 36,000$ 1,080.00$ 1,080.00$ 2,160.00$ 2,257.20$ 1 23 37,369$ 1,121.06$ 1,121.06$ 2,242.12$ 4,803.37$ 2 24 38,777$ 1,163.31$ 1,163.31$ 2,326.62$ 7,666.99$ 3 25 40,228$ 1,206.84$ 1,206.84$ 2,413.67$ 10,879.31$ 4 26 41,720$ 1,251.60$ 1,251.60$ 2,503.19$ 14,474.28$ 5 27 43,256$ 1,297.68$ 1,297.68$ 2,595.36$ 18,489.12$ 6 28 44,837$ 1,345.12$ 1,345.12$ 2,690.23$ 22,964.43$ 7 29 46,465$ 1,393.96$ 1,393.96$ 2,787.92$ 27,944.60$ 8 30 48,139$ 1,444.18$ 1,444.18$ 2,888.35$ 33,477.94$
18 40 66,851$ 2,005.52$ 2,005.52$ 4,011.04$ 133,780.22$ 28 50 81,491$ 2,444.72$ 2,444.72$ 4,889.44$ 386,845.07$ 38 60 99,337$ 2,980.10$ 2,980.10$ 5,960.20$ 1,001,301.55$ 39 61 101,323$ 3,039.70$ 3,039.70$ 6,079.40$ 1,097,771.67$ 40 62 103,350$ 3,100.50$ 3,100.50$ 6,200.99$ 1,203,051.15$
9%
2% 3% 3% (Assumed grow th)
YEARS IN (Assumed grow th) EMPLOYEE EMPLOYER TOTAL TOTALEDUCATION AGE SALARY CONTRIBUTION CONTRIBUTION CONTRIBUTION VALUE
0 22 36,000$ 1,080.00$ 1,080.00$ 2,160.00$ 2,257.20$ 1 23 36,720$ 1,101.60$ 1,101.60$ 2,203.20$ 4,762.69$ 2 24 37,454$ 1,123.63$ 1,123.63$ 2,247.26$ 7,539.73$ 3 25 38,203$ 1,146.10$ 1,146.10$ 2,292.21$ 10,613.66$ 4 26 38,968$ 1,169.03$ 1,169.03$ 2,338.05$ 14,012.15$ 5 27 39,747$ 1,192.41$ 1,192.41$ 2,384.81$ 17,765.38$ 6 28 40,542$ 1,216.26$ 1,216.26$ 2,432.51$ 21,906.24$ 7 29 41,353$ 1,240.58$ 1,240.58$ 2,481.16$ 26,470.61$ 8 30 42,180$ 1,265.39$ 1,265.39$ 2,530.78$ 31,497.64$ 18 40 51,417$ 1,542.51$ 1,542.51$ 3,085.01$ 118,820.62$ 28 50 62,677$ 1,880.31$ 1,880.31$ 3,760.61$ 335,237.33$ 38 60 76,403$ 2,292.08$ 2,292.08$ 4,584.17$ 859,388.17$ 39 61 77,931$ 2,337.92$ 2,337.92$ 4,675.85$ 941,619.37$ 40 62 79,489$ 2,384.68$ 2,384.68$ 4,769.37$ 1,031,349.10$
BARTHOLOMEW CONSOLIDATED SCHOOLS403(B) VENDORS
METLIFE Lottie Barcus Metlife 765-720-7786 [email protected] Tim Reusser Metlife 317-345-5524 [email protected] Gary Bridwell VALIC 800-892-5558 ext. 87042 [email protected] Stephanie Bunday VALIC 800-892-5558 ext. 88458 [email protected] Nate Richardson VALIC 800-892-5558 ext. 88809 [email protected] Rick Colglazier CFD Investments 372-4400 [email protected] Ryan Burchfield Edward Jones 378-0611 [email protected] Lisa Duke Edward Jones 378-0475 [email protected] Ken Free Edward Jones 378-0022 [email protected] Bob Lewis Edward Jones 378-5495 [email protected] Andy Mann Edward Jones 378-1018 [email protected] Jim Ostermueller Edward Jones 376-0370 [email protected] Eric Robbins Edward Jones 342-8193 [email protected] David Weiss Edward Jones 812-375-9160 [email protected] Mike Engelstad Engelstad Wealth Advisors812-799-0345 Michael.Engelstad @wfafinet.comASPIRE Jodi Engelstad Engelstad Wealth Advisors812-799-0345 Jodi.Engelstad @wfafinet.comASPIRE Warren Ward Warren Ward Assoc379-1120 www.warrenwardassociates.comASPIRE Philip Blum WestPoint Financial Group, LLC317-964-1849 [email protected] John Hettiger WestPoint Financial Group, LLC317-469-9999 [email protected] Jacob Martin WestPoint Financial Group, LLC812-603-8367 [email protected]
As of: 6/6/2014
BCSC BUYS YOUR UNUSED SICK DAYS OVER 180 FOR $43 PER DAY
FUNDS CAN ONLY BE USED FOR HEALTH-RELATED EXPENDITURES WHEN YOU RETIRE
VEBA ACCUMULATIONGROWTH RATE= 9%
18 10 ACCUMANNUAL ANNUAL VALUE OF VALUE OF
YEARS OF SICK DAYS SICK DAYS ACCUM DAYS DAYS DAYS COMPOUNDED VALUE OFAGE TEACHING GIVEN USED SICK DAYS BOUGHT BOUGHT BOUGHT GROWTH ONE DAY22 1 18 10 8 0 -$ -$ 23 2 18 10 16 0 -$ -$ - 43 22 18 10 176 0 -$ -$ - 44 23 18 10 184 4 172$ 172$ 172.00 43.00 45 24 18 10 188 8 344$ 516$ 531.48 46.87 46 25 18 10 188 8 344$ 860$ 923.31 51.09 47 26 18 10 188 8 344$ 1,204$ 1,350.41 55.69 48 27 18 10 188 8 344$ 1,548$ 1,815.95 60.70 49 28 18 10 188 8 344$ 1,892$ 2,323.38 66.16 50 29 18 10 188 8 344$ 2,236$ 2,876.49 72.12 51 30 18 10 188 8 344$ 2,580$ 3,479.37 78.61 52 31 18 10 188 8 344$ 2,924$ 4,136.52 85.68 53 32 18 10 188 8 344$ 3,268$ 4,852.80 93.39 54 33 18 10 188 8 344$ 3,612$ 5,633.55 101.80 55 34 18 10 188 8 344$ 3,956$ 6,484.57 110.96 56 35 18 10 188 8 344$ 4,300$ 7,412.19 120.94 57 36 18 10 188 8 344$ 4,644$ 8,423.28 131.83 58 37 18 10 188 8 344$ 4,988$ 9,525.38 143.69 59 38 18 10 188 8 344$ 5,332$ 10,726.66 156.63 60 39 18 10 188 8 344$ 5,676$ 12,036.06 170.72 61 40 18 10 188 8 344$ 6,020$ 13,463.31 186.09 62 41 18 10 188 8 344$ 6,364$ 15,019.00 202.84
VEBA ACCUMULATIONGROWTH RATE= 9%
18 5 ACCUMANNUAL ANNUAL VALUE OF VALUE OF
YEARS OF SICK DAYS SICK DAYS ACCUM DAYS DAYS DAYS COMPOUNDED VALUE OFAGE TEACHING GIVEN USED SICK DAYS BOUGHT BOUGHT BOUGHT GROWTH ONE DAY22 1 18 5 13 0 -$ -$ 23 2 18 5 26 0 -$ -$ - 34 13 18 5 169 0 -$ -$ - 35 14 18 5 182 2 86$ 86$ 86.00 43.00 36 15 18 5 193 13 559$ 645$ 652.74 46.87 37 16 18 5 193 13 559$ 1,204$ 1,270.49 51.09 38 17 18 5 193 13 559$ 1,763$ 1,943.83 55.69 39 18 18 5 193 13 559$ 2,322$ 2,677.78 60.70 40 19 18 5 193 13 559$ 2,881$ 3,477.77 66.16 60 39 18 5 193 13 559$ 14,061$ 48,089.39 370.79 61 40 18 5 193 13 559$ 14,620$ 52,976.43 404.16 62 41 18 5 193 13 559$ 15,179$ 58,303.31 440.54
VEBA ACCUMULATIONGROWTH RATE= 9%
18 0 ACCUMANNUAL ANNUAL VALUE OF VALUE OF
YEARS OF SICK DAYS SICK DAYS ACCUM DAYS DAYS DAYS COMPOUNDED VALUE OFAGE TEACHING GIVEN USED SICK DAYS BOUGHT BOUGHT BOUGHT GROWTH ONE DAY22 1 18 0 18 0 -$ -$ 23 2 18 0 36 0 -$ -$ - 31 10 18 0 180 0 -$ -$ - 32 11 18 0 198 18 774$ 774$ 774.00 43.00 33 12 18 0 198 18 774$ 1,548$ 1,617.66 46.87 34 13 18 0 198 18 774$ 2,322$ 2,537.25 51.09 35 14 18 0 198 18 774$ 3,096$ 3,539.60 55.69 50 29 18 0 198 18 774$ 14,706$ 35,618.29 202.84 51 30 18 0 198 18 774$ 15,480$ 39,597.93 221.09 52 31 18 0 198 18 774$ 16,254$ 43,935.75 240.99 53 32 18 0 198 18 774$ 17,028$ 48,663.96 262.68 54 33 18 0 198 18 774$ 17,802$ 53,817.72 286.32 55 34 18 0 198 18 774$ 18,576$ 59,435.32 312.09 56 35 18 0 198 18 774$ 19,350$ 65,558.49 340.18 57 36 18 0 198 18 774$ 20,124$ 72,232.76 370.79 58 37 18 0 198 18 774$ 20,898$ 79,507.71 404.16 59 38 18 0 198 18 774$ 21,672$ 87,437.40 440.54 60 39 18 0 198 18 774$ 22,446$ 96,080.77 480.19 61 40 18 0 198 18 774$ 23,220$ 105,502.03 523.40 62 41 18 0 198 18 774$ 23,994$ 115,771.22 570.51
Health Savings Account (HSA)Health Savings Account (HSA)
What are they?What are they? • HSAs are tax-advantaged medical savings accounts available HSAs are tax-advantaged medical savings accounts available
to taxpayers who are enrolled in an HSA-qualified high-to taxpayers who are enrolled in an HSA-qualified high-deductible health plan. deductible health plan.
• The funds contributed to the account are not subject to federal The funds contributed to the account are not subject to federal income tax at the time of deposit. income tax at the time of deposit.
• Unused amounts in one year can be carried over to following Unused amounts in one year can be carried over to following years and added to subsequent contributions.years and added to subsequent contributions.
HSA Contribution Limits:HSA Contribution Limits:• Individual: $3,350 for 2015Individual: $3,350 for 2015• Family: $6,650 for 2015Family: $6,650 for 2015• Individuals age 55 and over may make an additional “catch Individuals age 55 and over may make an additional “catch
up” contribution of up to $1,000 in 2014 and in 2015. up” contribution of up to $1,000 in 2014 and in 2015.
Questions?????Questions?????