Securities offered through NEXT Financial Group, Inc. member FINRA and SIPC
2500 Wilcrest, Suite 620, Houston TX 77042 (877) 876-6398, www.nextfinancial.com
Before investing in a mutual fund or variable annuity, consider its investment objectives, risks, charges and expenses carefully.
_______________________________________________________________________________________________________________________
Copyright 2008 McMillion Financial Group LLC. All rights reserved. Revised May 5, 2008.
_______________________________________________________________________________________________________________________
2500 Wilcrest, Suite 620, Houston TX 77042 (877) 876-6398, www.nextfinancial.com
Before investing in a mutual fund or variable annuity, consider its investment objectives, risks, charges and expenses carefully.
_______________________________________________________________________________________________________________________
Copyright 2008 McMillion Financial Group LLC. All rights reserved. Revised May 5, 2008.
_______________________________________________________________________________________________________________________
Branch Office: 3022 S National Avenue, Suite 326, Springfield MO 65804
Phone (417) 889-9003 E-mail: kmcmillion@mcmillionfinancialgroup.com
McMillion Financial Group LLC is not an affiliate of Next Financial Group LLC.
Phone (417) 889-9003 E-mail: kmcmillion@mcmillionfinancialgroup.com
McMillion Financial Group LLC is not an affiliate of Next Financial Group LLC.
McMillion Financial Group
your partner in retirement planning
your partner in retirement planning
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The Benefits of Investing in a 403(b)
403(b)s are tax-advantaged retirement programs for employees of hospitals, educational
institutions, and certain other not-for-profit organizations. 403(b) plans provide an outstanding
means to maximize retirement savings. With the traditional 403(b), investors may fund their
accounts with pre-tax payroll deductions and both accounts contributions and earnings are
treated as tax-deferred until withdrawal. Roth 403(b) accounts are funded with after-tax dollars.
These accounts may grow tax-free and all qualified distributions are tax-free.*
Employees may defer to both a traditional 403(b) and a Roth 403(b) account, and annual elective
deferrals may be divided between the two accounts in any manner the employee chooses.
However, once Salary Reduction Agreements are in place and contributions have been
deposited, monies may not be transferred between the accounts.
403(b) Account holders Enjoy These Benefits. . .
Pre-Tax Savings - Participants who defer compensation into a 403(b) account realize immediate
tax savings on their contributions. Before any taxes are taken out, your paycheck is reduced by the
amount you decide to invest. Therefore your total taxable income is less.
Tax-deferred Growth Potential - Taxes on your investment earnings are also deferred. You
needn't pay taxes on anything that your deferred compensation earns until you retire. For many
people, that time is years away, allowing for long-term investment growth. Withdrawals are taxed
as ordinary income, but many retirees find themselves in a lower tax bracket than when they were
working. (A 10% penalty may apply for early withdrawal from a 403(b) account-- i.e., before age 59
1/2 unless taking advantage of 72(t) distribution. See your Financial Advisor for details.)
Convenient Payroll Deduction with Built-in Dollar Cost Averaging - Investing in a 403(b) plan
couldn't be simpler. You may decide to defer a certain percentage of your compensation each
pay period to be invested in your 403(b) account. As this amount is automatically deducted from
your paycheck at regular intervals, dollar cost averaging is built in to your investment plan. With
dollar cost averaging, you buy more shares when prices are low and fewer when prices are high.
Over time, the average amount paid (average cost) for each share will usually be less than the
average price per share. This strategy also eliminates the need to decide when is the best time
to buy. (Dollar cost averaging does not assure a profit and does not protect against a loss in
declining markets. Investors should consider their ability to purchase shares continuously during
periods of falling share prices.)
Optional Employer Contributions - Your employer may elect to match a certain percentage of
your 403(b) plan contributions. This participation incentive is money you receive above and
beyond your regular salary. In fact, employer matching is like getting an instant raise.
Choice and Portability - Many investment options are available for 403(b) plans, including fixed
annuities, variable annuities and mutual funds. This variety enables you to design a customized
plan that suits your time horizon, risk tolerance and investment objectives. Also your 403(b)
account is portable. If you should leaver your job, your account can be transferred to another
employer's 403(b) program or rolled to an IRA.
Dynamic Asset Management - Most 403(b) plan participants have access to professionally
managed investment portfolios, with either insurance or mutual fund companies.
Loan Provision - Loans are available from most 403(b) plans. Under some loan programs, both
principal and interest are paid back to your account via automatic payroll deduction. This means
if you meet your payment schedule on time, the loan is free!*
Distributions - 403(b) account assets can be withdrawn without penalty after age 59 1/2 even if
you are still employed. Upon withdrawal, ordinary income taxes will apply. Distributions must
begin no later than April 1 of the calendar year following the calendar year in which you attain age
70 1/2 unless you are still working. 403(b) plan participants who have terminated employment
under the age of 55 may begin distributions through an IRS provision known as a 72(t)
distribution. See your Advisor for details.
While Roth 403(b) Account Holders Enjoy these Benefits....
Tax-free Growth Potential - Assets in Roth 403(b) accounts may grow tax-free.
Tax-free Retirement Income - Roth 403(b) accounts can provide tax-free income during your
retirement years since all qualified distributions for a Roth 403(b) account are tax-free.*
Convenient Payroll Deduction with Built-in Dollar Cost Averaging - As with regular 403(b)
accounts, employees may fund their Roth 403(b)s through payroll deduction. Since this amount
is automatically deducted from your paycheck at regular intervals, dollar cost averaging is built in
to your investment plan. With dollar cost averaging, you buy more shares when prices are low
and fewer when prices are high. Over time, the average amount paid (average cost) for each
share will usually be less than the average price per share. This strategy also eliminates the
need to decide when is the best time to buy. (Dollar cost averaging does not assure a profit and
does not protect against a loss in declining markets. Investors should consider their ability to
purchase shares continuously during periods of falling share prices.)
Choice and Portability - The investment options are available for Roth 403(b) plans are fixed
annuities, variable annuities and mutual funds. This variety enables you to design a customized
investment strategy that suits your time horizon, risk tolerance and investment objectives. Also,
your Roth 403(b) account is portable. If you should leave your job, your account can be
transferred to another employer's Roth 403(b) program or rolled to a Roth IRA.
Dynamic Asset Management - Most Roth 403(b) plan participants have access to professionally
managed investment portfolios, with either insurance or mutual fund companies.
Loan Provision - Loans are available from most Roth 403(b) plans. Under some loan programs,
both principal and interest are paid back to your account via automatic payroll deduction. This
means if you meet your payment schedule on time, the loan is free!*
Distributions* - Roth 403(b) distributions may begin at age 59 1/2 provided the account has been
funded for at least 5 years). And, while regular 403(b) account distributions are mandatory at age
70 1/2, Roth 403(b) distributions are not mandatory until death if the account is rolled over to a
Roth IRA.
*In order for the Roth 403(b) account to be distributed tax-free, it must be funded for a minimum of five years and
distributions cannot be taken before the account holder attains age 59 1/2. A participant would also qualify for
tax-free distributions if the account was held for five years and the account owner became disabled (under the
strict definition of disability of 72(p) of the IRS code). Furthermore, in the event of the account holder's death,
beneficiaries would receive tax-free distributions if the account was held for at least five years. Otherwise, the
distribution would be treated as part return of principal and part taxable earnings. A 10% premature withdrawal
penalty may apply to the earnings.
**Defaulting on a loan from a retirement plan constitutes a distribution from that plan. Distributions from a
retirement plan are subject to federal income tax and may incur an additional 10% penalty if the participant is
under the age 59 1/2
403(b)s are tax-advantaged retirement programs for employees of hospitals, educational
institutions, and certain other not-for-profit organizations. 403(b) plans provide an outstanding
means to maximize retirement savings. With the traditional 403(b), investors may fund their
accounts with pre-tax payroll deductions and both accounts contributions and earnings are
treated as tax-deferred until withdrawal. Roth 403(b) accounts are funded with after-tax dollars.
These accounts may grow tax-free and all qualified distributions are tax-free.*
Employees may defer to both a traditional 403(b) and a Roth 403(b) account, and annual elective
deferrals may be divided between the two accounts in any manner the employee chooses.
However, once Salary Reduction Agreements are in place and contributions have been
deposited, monies may not be transferred between the accounts.
403(b) Account holders Enjoy These Benefits. . .
Pre-Tax Savings - Participants who defer compensation into a 403(b) account realize immediate
tax savings on their contributions. Before any taxes are taken out, your paycheck is reduced by the
amount you decide to invest. Therefore your total taxable income is less.
Tax-deferred Growth Potential - Taxes on your investment earnings are also deferred. You
needn't pay taxes on anything that your deferred compensation earns until you retire. For many
people, that time is years away, allowing for long-term investment growth. Withdrawals are taxed
as ordinary income, but many retirees find themselves in a lower tax bracket than when they were
working. (A 10% penalty may apply for early withdrawal from a 403(b) account-- i.e., before age 59
1/2 unless taking advantage of 72(t) distribution. See your Financial Advisor for details.)
Convenient Payroll Deduction with Built-in Dollar Cost Averaging - Investing in a 403(b) plan
couldn't be simpler. You may decide to defer a certain percentage of your compensation each
pay period to be invested in your 403(b) account. As this amount is automatically deducted from
your paycheck at regular intervals, dollar cost averaging is built in to your investment plan. With
dollar cost averaging, you buy more shares when prices are low and fewer when prices are high.
Over time, the average amount paid (average cost) for each share will usually be less than the
average price per share. This strategy also eliminates the need to decide when is the best time
to buy. (Dollar cost averaging does not assure a profit and does not protect against a loss in
declining markets. Investors should consider their ability to purchase shares continuously during
periods of falling share prices.)
Optional Employer Contributions - Your employer may elect to match a certain percentage of
your 403(b) plan contributions. This participation incentive is money you receive above and
beyond your regular salary. In fact, employer matching is like getting an instant raise.
Choice and Portability - Many investment options are available for 403(b) plans, including fixed
annuities, variable annuities and mutual funds. This variety enables you to design a customized
plan that suits your time horizon, risk tolerance and investment objectives. Also your 403(b)
account is portable. If you should leaver your job, your account can be transferred to another
employer's 403(b) program or rolled to an IRA.
Dynamic Asset Management - Most 403(b) plan participants have access to professionally
managed investment portfolios, with either insurance or mutual fund companies.
Loan Provision - Loans are available from most 403(b) plans. Under some loan programs, both
principal and interest are paid back to your account via automatic payroll deduction. This means
if you meet your payment schedule on time, the loan is free!*
Distributions - 403(b) account assets can be withdrawn without penalty after age 59 1/2 even if
you are still employed. Upon withdrawal, ordinary income taxes will apply. Distributions must
begin no later than April 1 of the calendar year following the calendar year in which you attain age
70 1/2 unless you are still working. 403(b) plan participants who have terminated employment
under the age of 55 may begin distributions through an IRS provision known as a 72(t)
distribution. See your Advisor for details.
While Roth 403(b) Account Holders Enjoy these Benefits....
Tax-free Growth Potential - Assets in Roth 403(b) accounts may grow tax-free.
Tax-free Retirement Income - Roth 403(b) accounts can provide tax-free income during your
retirement years since all qualified distributions for a Roth 403(b) account are tax-free.*
Convenient Payroll Deduction with Built-in Dollar Cost Averaging - As with regular 403(b)
accounts, employees may fund their Roth 403(b)s through payroll deduction. Since this amount
is automatically deducted from your paycheck at regular intervals, dollar cost averaging is built in
to your investment plan. With dollar cost averaging, you buy more shares when prices are low
and fewer when prices are high. Over time, the average amount paid (average cost) for each
share will usually be less than the average price per share. This strategy also eliminates the
need to decide when is the best time to buy. (Dollar cost averaging does not assure a profit and
does not protect against a loss in declining markets. Investors should consider their ability to
purchase shares continuously during periods of falling share prices.)
Choice and Portability - The investment options are available for Roth 403(b) plans are fixed
annuities, variable annuities and mutual funds. This variety enables you to design a customized
investment strategy that suits your time horizon, risk tolerance and investment objectives. Also,
your Roth 403(b) account is portable. If you should leave your job, your account can be
transferred to another employer's Roth 403(b) program or rolled to a Roth IRA.
Dynamic Asset Management - Most Roth 403(b) plan participants have access to professionally
managed investment portfolios, with either insurance or mutual fund companies.
Loan Provision - Loans are available from most Roth 403(b) plans. Under some loan programs,
both principal and interest are paid back to your account via automatic payroll deduction. This
means if you meet your payment schedule on time, the loan is free!*
Distributions* - Roth 403(b) distributions may begin at age 59 1/2 provided the account has been
funded for at least 5 years). And, while regular 403(b) account distributions are mandatory at age
70 1/2, Roth 403(b) distributions are not mandatory until death if the account is rolled over to a
Roth IRA.
*In order for the Roth 403(b) account to be distributed tax-free, it must be funded for a minimum of five years and
distributions cannot be taken before the account holder attains age 59 1/2. A participant would also qualify for
tax-free distributions if the account was held for five years and the account owner became disabled (under the
strict definition of disability of 72(p) of the IRS code). Furthermore, in the event of the account holder's death,
beneficiaries would receive tax-free distributions if the account was held for at least five years. Otherwise, the
distribution would be treated as part return of principal and part taxable earnings. A 10% premature withdrawal
penalty may apply to the earnings.
**Defaulting on a loan from a retirement plan constitutes a distribution from that plan. Distributions from a
retirement plan are subject to federal income tax and may incur an additional 10% penalty if the participant is
under the age 59 1/2