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Take Advantage of Tax-Deferred Investing

Contributing to your Plan is a great way to take advantage of tax-deferred investing. Contributions to your Plan and all future earnings on those contributions are tax-deferred until money is withdrawn. 

The chart below shows how monthly contributions over time in a tax-deferred retirement plan compare to monthly contributions and any potential earnings compounded in a currently taxable instrument (such as a bank savings or brokerage account). 

FOR illustrative purposes only. This hypothetical illustration is intended to show a comparison between investing in a tax-deferred versus a taxable investment vehicle. It is not intended as a projection or prediction of future investment results, nor is it intended as financial planning or investment advice. It assumes $100 monthly contributions, a 15% federal income tax bracket, and reinvestment of earnings with no withdrawals. Rates or return may vary. Distributions from a tax-deferred retirement plan may be taxable as ordinary income. The 10% early withdrawal penalty does not apply to 475 plan withdrawals. Assumes that the taxable account does not hold and investment for more than 12 months. Taxable investments held longer than 12 months may qualify for lower capital gains and/or qualified dividend tax rates, which may make the return on the taxable investments more favorable, thereby reducing the difference in performance between the accounts shown. The illustration does not reflect any associated charges, expenses or fees. The tax-deferred accumulation shown would be reduced if these fees had been deducted.  

For more information of the benefits of tax deferred investing contact your plan consultant. 

Hunter Nighbert

Financial Advisor



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