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Annuities & 403(b)(7) Plans
Tax-deferred individual investment plans
Extraco offers annuities and 403(b)(7) Plans that give individuals an alternate way to make tax-deferred investments.
Annuity contracts are ideal for people who want to plan for a steady source of income at regular intervals, usually for retirement purposes.
There are several different types of annuities, including:
Fixed annuity: Provides investors with guaranteed tax-free principal and interest growth until withdrawn at maturity.
Immediate annuity: Investors provide the issuer with a lump sum of money, which in turn guarantees a specified amount of money for a given period of time. Income can be disbursed monthly, quarterly, semiannually or annually.
Variable annuity: Investors provide the issuer with a lump sum of money, which is invested according to the investor's objectives. Instead of a fixed rate of return, investors receive whatever their investment yields.
403(b)(7) Plans let eligible employees set aside money on a pre-tax basis. That money is distributed to employer-approved mutual funds, where the money grows tax-deferred until retirement.
Employees are free to choose their mutual fund mix and contribution amount using a formula based on salary, years of service, prior service and current age.
For more information, contact an Extraco Relationship Manager by e-mail, or call 866-EXTRACO toll-free.
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