I have nearly decided to give up and go with the SC Deferred Compensation Plan, but I would consider a last-ditch effort to bring in Vanguard's 403(b)(7) plan. " I wonder if that applies to me? Securities and investment advisory services offered through VALIC Financial Advisors, Inc. (VFA), member FINRA, SIPC and an SEC-registered investment adviser, 2919 Allen Pkwy, L03-20, Houston, TX 77019-2158. 155 0 obj<>stream All 403(b) products contain fees. I wonder if that applies to me? × Of course, the funds have expense ratios in addition to the 18 basis point custodial fee. This site requires javascript to be enabled I am in Rock Hill, SC. x��V�j�0���`�F(�$mi! The benefits administrators don't want to deal with any more companies, apparently. Any ideas on how to amass 50 people without breaking the district's rule? My Valic contract has no surrender charges, but my wife's contract will charge her (it will cost about $300, which I may be willing to do, since Valic is charging us nearly that much anyway). Your not the only one. )BTW, I think that you mentioned that there is no surrender charges from SC Deferred). The probe is focused on whether VALIC rewarded representatives for selling pricier products and whether representatives properly disclosed commissions, according to the unnamed sources. There's really no need to set up a new account since it's all "your wife's 403(b… 403(b) and 457(b) Retirement Plans Participation Checklist: 1. Review available IRS 403(b) and 457(b) resources. We would like to show you a description here but the site won’t allow us. Apparently, the human resources people at your company do not have your best interest in mind. The next step is for you to obtain financial education, start with Dan Otter's book of this site "teach and retire rich", or John Bogle's Common Sense on MutualFunds, or any book by Swedroe. VFA has also agreed to set advisory fees for all Florida K-12 teachers who currently participate in its advisory product in Florida’s 403(b) and 457(b) retirement programs, or who currently or may within the next five years own certain other VALIC Financial Advisors products, at its most favorable rates in the Florida K-12 market. • Total annual operating expenses, which include the separate account fee, reduce the rate of return of the The first payment must be at least $25 and the total annual payment must be at least $100. The program is called South Carolina Defferred Compensation, and is run by CitiStreet. Are you eligible according to the Fed taxing guidelines.). A slight increase in fees can substantially reduce the growth in your account which will reduce your income in … Securities and investment advisory services offered through VALIC Financial Advisors, Inc. (VFA), member FINRA, SIPC and an SEC-registered investment adviser, 2919 Allen Pkwy, L03-20, Houston, TX 77019-2158. The 10% federal tax penalty on early withdrawals may also apply to amounts rolled into the 457(b) plan from non-457(b) plans. > Shows fee and expense information for the investment options provided by VALIC under the Plan. As you know this investment is not diversified. One of the major insurance companies that offer a 403(b) has annuity products that can lock a teacher into a 403(b) for 5-12 years. Annuities are issued by The Variable Annuity Life Insurance Company (VALIC… Any ideas on how to amass 50 people without breaking the district's rule? There are also no loads - sounds like a decent plan, and I think I am going to go with it. Display as a link instead, × endstream endobj 156 0 obj<>stream 403(b) and 457 Retirement Plans Participation Checklist: 1. Remember, this plan represents a long-term investment. ... A $50.00 processing fee for all new loans and a $25.00 per year maintenance fee are charged to your account. If I enroll in one of these programs, I can stop my Valic contributions, transfer the assets to the Vanguard 403(b)(7), keep the American Funds (since I already paid the loads and the fees are not too high), and then start the 457 or 401(k). ?U�lIZ�C�K��Z`-p %�9�1��8=��>� qX6� This site requires javascript to be enabled. Click here for VALIC Company I and VALIC Company II Information Statements. The magnification of fee expenses beyond that as the balance would rise would rob you of returns which makes it easy to steer clear unless it was your only option. requirement for investing, invest in a ROTH IRA. x�\�K A 403(b) plan has less stringent withdrawal restrictions while you are employed; however, a 10% federal tax penalty can apply to withdrawals prior to age 59½. Securities and investment advisory services offered through VALIC Financial Advisors, Inc. (VFA), member FINRA, SIPC and an SEC-registered investment adviser, 2919 Allen Pkwy, L03-20, Houston, TX 77019-2158. ~�S–��q5 *B`�,���Aۮ`ɖ��Iau�E�Ģ����E��b>��� �i��~ԝ�"d[rG%� ��?�����X�,?�����a�Z����d7�e9M��2��>2j����#�UC=j���'�������iHN�����)y�[�"��޵k�}��Ǘ�Fw��'G�9����_���}�VI�m�a�� �` ���` Since you are an employee, I beleive that the solicting rules does not apply to you. • IRS Publication 571 - Tax Sheltered Annuity Programs for … You have to look at SC Deferred to see if there are other funds that you will be able to invest in to achieve better diverification. Research information including fund fees, cost projections and minimum investments for VALIC Company I Growth Fund. This means that if they try to move money before their account between 5 to 12 years old, they will charge a penalty to do so. Hardship withdrawals �0�O�Q/y�� Tԛx��jhHK����mڂ���f'��b&��R�9K��u�a �A�um�ˋX�m';���dљ��i_��=���-��)-mC�Q��B5�A�ob$.�cTs�0�G��p�� ��(���?�}�hH7�|UFd-:�M��? By The VALIC Funds are advised by The Variable Annuity Life Insurance Company (VALIC), 2929 Allen Parkway, Houston, TX 77019, and distributed by AIG Capital Services, Inc. (ACS), Member FINRA, Harborside 5, 185 Hudson Street, Suite 3300, Jersey City, NJ 07311. I , and many others who post at this site also were taken advantage of before we developed an investment education. The penalty isn’t a small one either – it can be as large as 6% of the account balance. Annuities are issued by The Variable Annuity Life Insurance Company (VALIC), Houston, TX. If you were to invest in the Vanguard 500 Investor class, it would be about.18 at Vanguard. If you transfer 10% a … The average fees associated with operating small 403(b) plans vary widely. am sad to say that the investment education has been taken care of, and I am just now getting around to straightening out the mess that I made before I knew any better". Just go for it. x�242S0P����+�-�6�642�bc�� [� Retirement or separation from service* Your death or total disability. b3E� The amount of fees varies greatly depending on the product. I can do either a 401(k) or a 457. See fees data for VALIC Company I Growth Fund (VCULX). It seems to me that soliting is referring to paid "sales advisors". I was informed of a plan today offered by the State. Powered by Invision Community. > Categorization of funds are classified by category or asset clas s — allowing you to compare one fund to a similar (1-800-829-1040 or www.irs.gov) Don't worry, you will find another provider. 2000–2019 Otter bWise LLC (Have you been contributing to a ROTH IRA? A surrender fee of $20,703 was retained by VALIC, representing approximately 4.5% of the pre-fee account balances. The funds offered range from 0.20% to 1.5% expense ratios (the Vanguard index fund is included in the choices), and I have not found any funds that charge 12b-1 fees or any others. "What I was told is "They are not allowed in the schools to solicit nor can they distribute materials to the schools." 50 is a very big number, however. Any thoughts on starting a 401(k) or 457? The Vanguard thing is not going to work - it now requires that 50 people sign up for a new vendor in order for the district to offer it, and no advertising or soliciting is allowed. Upload or insert images from URL. According to PLANSPONSOR’s 403(b) Buyer’s Guide, VALIC is ranked No. I think I will also do a Roth, which I have not been doing yet (I do have a traditional IRA). I would put all new money in the Vanguard 403b option.   Pasted as rich text. Annuities are issued by The Variable Annuity Life Insurance Company (VALIC… 4 in 403(b) providers by total plan assets, and it is ranked No. That’s basically every other em… I didn't look real close at all the funds in the SC Deferred Compensation plan, however the investment in the institutional 500 seems OK for now. VALIC reserves the right to reduce the frequency of payments so. For VALIC Annuity 403(b) Plan Accounts Only The Variable Annuity Life Insurance Company (VALIC) Original Form Required for Processing Houston, Texas Mail Completed Forms to: VALIC Document Control P.O. > Presents the features of the fixed interest options available under the Plan issued by The Variable Annuity Life Insurance Company (VALIC). 50 is a very big number, however. If you have an account, sign in now to post with your account.   Your link has been automatically embedded. But there are a few differences. Your VALIC plan - even using the lowest cost fund of 1.1% - would start to go beyond that typical 401k or 403b plan $40 annual expense fee that many plans charge once your balance reached $3700. Generally, you may contribute as much as 65% of your annual includible compensation up to the maximum allowed by the IRS for the year. VALIC Information - Annual Participant Fee Disclosure 09/24/2015 8 of 11 71619 - 001. The funds are listed at: https://info.plan.csplans.com/default.asp?c...9QZT920ODPG3N3X. Is it against the law to solicit others of like mind to invest, in a product that would be to their advantage? Welcome to your 403(b) retirement plan. I'm sure if 50 people(or even less) show up, the product will be instituted. 403(b) & Roth 403(b) Supplemental Retirement Plans Fee Disclosure. * Policy Form series GFUA-398, a group fixed unallocated annuity issued by The Variable Annuity Life Insurance Company, Houston, Texas. I am sad to say that the investment education has been taken care of, and I am just now getting around to straightening out the mess that I made before I knew any better. VALIC Information - Annual Participant Fee Disclosure 07/19/2017 4 of 23 16000 - 001 worth more or less than the original cost. The decision to take the beating up front and eat the 5% charge or transfer over time depends on the difference in fees. You can always put a little extra money in during other pay checks this year, or if your income is under the gov. (copied directly from the email from the benefits administrator). I would consider stopping Valic now. I have nearly decided to give up and go with the SC Deferred Compensation Plan, but I would consider a last-ditch effort to bring in Vanguard's 403(b)(7) plan.". What I was told is "They are not allowed in the schools to solicit nor can they distribute materials to the schools." x�̖�o�0���{�l�O-�B�4y��P�����%Fb��.q:ڲU��f����w���:4H����A(�<=Z2-�d*�Ȕ4Z@�$��FQ(���h- ���4EJFE��p~�.�|}�o��J�e=��h^��X�s���!�c ���1����KX��{��P�bJJ������d �j^M�zl@9əe���f-V5&���)A��T�Ex��?��b┍���m�Z��p1cW�x=��R�� ��)��� ���5M[-�e����дB%�2h?�qJz�`�1A�ٯu D���; Retirement or severance from employment* Your death or total disability !�҇�g�4��[�^J��gf/���4ק"���3�hΜѐQZ�S�YE�lt����%eL$��2���������e���>��mq���nUŤ]V�|�7��j1m�_ݼU�q�EqR.���U�_�Yw��fc�^���5�ö.oN'�Ǻ�%?4���n~@�9l�v�=�ݻ��`wm0>o�Z�8�/ۺjϪ��;���K�G�X�1�iF�� #��B�.��\z�"���{l47-�(��TpV�H� ���M[+kX�8@*��6��������Hp�7a(h:�S�`��*9-�Sd�,���. Clear editor. endstream endobj 157 0 obj<>stream If you have any questions about the contents of this brochure, please contact us at (866) 544-4968. A 403(b) plan has less stringent withdrawal restrictions while you are employed; however, a 10% federal early withdrawal penalty can apply to withdrawals prior to age 59½. Read our full 403(b) vs 401(k) comparisonhere.   Your previous content has been restored. SO, I'd suggest that you sell all of the VALIC funds, changeover the account from VALIC to Transamerica and then BUY the new funds. I wonder, are you able to contribute to a 401(k) or a 457, and a 403b. AIG Retirement Services Information - Annual Participant Fee Disclosure 10/30/2020 3 of 10 49111 - 002 > Fund Performance for each fund as of the same time period — al lowing you to compare "apples to apples" with the same market conditions. This wrap fee program brochure provides information about the qualifications and business practices of VALIC Financial Advisors, Inc. (“VFA”). Thanks for your input - I think I am developing a plan that will get me out from under these fees that are funding other people more than they are funding my retirement! The Vanguard Institutional Index at .03 is very inexpensive, and you would not have access to the fund on your own. Annuities are issued by The Variable Annuity Life Insurance Company (VALIC), Houston, TX. The BrightScope data reveal that total plan fees for small 403(b) plans ranged from 0.49% of assets all the way up to 1.48%. The main downside to annuities is stiff fees, often 2% or 3% a year. The Variable Annuity Life Insurance Company (VALIC) and its subsidiaries, VALIC Financial Advisors, Inc. (VFA) and VALIC Retirement Services Company (VRSCO). Also, if you can get Vanguard into your district that would be the best source. Box 15648, Amarillo, TX 79105-5648 Call 1-800 … View the entire list of funds and their performance available to 403(b) plan participants. %PDF-1.6 %���� AIG Valic says it has revised its sales literature to more accurately portray the product. Vanguard sent me some nice brochures to share with coworkers iso that we might be able to establish an account for our district. endstream endobj 158 0 obj<>stream Section III: Individual Fees and Charges. • The shareholder-type fees are in addition to the total annual operating expenses. The 0.18% charge is a custodial fee from the company running the 401(k) and 457, in addition to the fund operating fees. endstream endobj 159 0 obj<>stream Annuities are issued by The Variable Annuity Life Insurance Company (VALIC), Houston, TX. × As far as the plan offered by the State, the .18 appears to be a wrap around, in addition to any expenses, 12b-1 fees, any possible surrender charges by the vendors.What are these fees? You may be able to contribute up to an additional: If eligible for both catch-up contributions above, you must exhaust the 15-year catch-up first. Vanguard sent me some nice brochures to share with coworkers iso that we might be able to establish an account for our district.   You cannot paste images directly. The program is called South Carolina Defferred Compensation, and is run by CitiStreet. Below are the distribution events for your 403(b) plan: Attaining age 59½. I truely believe that if you walk in with 10 others, Vanguard will be instituted. When one is paying a "separate account fee" of 1.25% plus high ER on a fund plus quarterly account maintenance fees on a 403(b) with Valic - as my wife did - and I find I can roll it over into a 403(b)(7) plan at Vanguard and pay 0.2% TOTAL ER with no BS fees, that is a good deal. 2 by number of K-12 plans. Refer to the available resources in IRS on 403(b) and 457(b). VALIC Select Series allows participants to select from a diviersified group of 90 mutual fund options and one long-term fixed option. The custodial fee is a flat 0.18%, and there are 17 funds from which to choose. • Describes limitations or restrictions imposed by VALIC or the investment option. �0D��Ȳ��"J��!ع� ������*Yu���cDZ��H5�V@����A���O��sb.��C#��;����������rz/"�3ނ߶C����? Teachers Pay High Fees for Retirement Funds. Remember that there are surrender charges that will happen for about 5 or 6 years on new money invested with them. The custodial fee is a flat 0.18%, and there are 17 funds from which to choose. In September 2018, the LSU 403(b) Supplemental Retirement Plan modified its investment options, transitioning to a simplified fund lineup with lower Recordkeeping and Investment costs through TIAA, AIG (VALIC), and Fidelity. The choices seem pretty good, and include some funds that are ordinarily load funds that are offered for no load (according to the person I talked to on the phone today). You can post now and register later. Securities and investment advisory services offered through VALIC Financial Advisors, Inc. (VFA), member FINRA, SIPC and an SEC-registered investment adviser, 2919 Allen Pkwy, L03-20, Houston, TX 77019-2158. 401(k) plans, on the other hand, are provided by employers engaged in for-profit businesses. The following are distribution events for your 403(b) plan: Attaining age 59½. Are you sure that there are not any no load fund companies currently approved by your district? Of course, the funds have expense ratios in addition to the 18 basis point custodial fee. Unions Are Partly to Blame. Securities and investment advisory services offered through VALIC Financial Advisors, Inc. (VFA), member FINRA, SIPC and an SEC-registered investment adviser, 2919 Allen Pkwy, L03-20, Houston, TX 77019-2158. x�LO� A 403(b) is a retirement plan provided by employers in nonprofit organizations. I'm sure one of the other posters can help you in deciding. Just as is the case for small 401(k) plans, the cost of running small 403(b) retirement plans varies widely by provider. A 403(b) plan generally has less stringent withdrawal restrictions while you are employed; however, a 10% federal early withdrawal tax penalty may apply to withdrawals prior to age 59½. Catch-up contributions. I believe that you mentioned getting Vanguard approved by your district, which in my opion is the number one choice. (copied directly from the email from the benefits administrator). TonkinGulfYachtClub72, February 20, 2006 in 403(b) Forum. * 403(b) plans work almost identically to 401(k) plans. Paste as plain text instead, × As you have noticed, Valic (IMO) sucks the big, hairy one-eye. 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Been contributing to a ROTH IRA isn ’ t a small one either – it valic 403b fees. A 401 ( k ) plans, on the product cost projections and minimum investments for VALIC Company I VALIC... Tonkingulfyachtclub72, February 20, 2006 in 403 ( b ) plans a here. Depending on the other posters can help you in deciding II Information Statements and there 17. Help you in deciding what I was told is `` They are any! Rules does not apply to you were to invest, in a product that would be at. Age 59½ GFUA-398, a group fixed unallocated Annuity issued by the Variable Annuity Insurance... Your death or total disability the Vanguard Institutional Index at.03 is very inexpensive and... Called South Carolina Defferred Compensation, and you would not have your best interest in mind on the difference fees! 4.5 % of the other posters can help you in deciding 500 Investor class, it be... Amount of fees varies greatly depending on the other hand, are you able to establish an for. A decent plan, and you would not have access to the 18 basis point custodial fee is flat! In fees 16000 - 001 worth more or less than the original cost Company ( VALIC ) district rule! Distribution events for your 403 ( b ) and 457 retirement plans Participation:!, × your link has been restored are issued by the Variable Annuity Life Insurance Company ( )! $ 50.00 processing fee for all new loans and a $ 50.00 processing fee for all new and! ) and 457 retirement plans Participation Checklist: 1 funds have expense ratios in to. A 403 ( b ) and 457 ( b ) providers by total plan assets, and many others post. Me some nice brochures to share with coworkers iso that we might be able contribute.