AUL adds Roth option to its retirement planning lineup
Roth 401(k)/403(b) option provides participants with added flexibility
Indianapolis -- July 19, 2006
Those who are eager to save for retirement now have more options when it comes to retirement saving, regardless of income level. The Retirement Services division of American United Life Insurance Company® (AUL), a OneAmerica company, is pleased to announce that it has added a Roth 401(k)/403(b) option to its retirement product lineup.
While the traditional, pre-tax 401(k) continues to dominate the retirement savings market, the Roth option may serve some customers’ needs better. Unlike a traditional 401(k) in which contributions are made on a pre-tax basis, Roth contributions are taxed up front. This may prove advantageous to the younger worker who is at the beginning of his or her career but plans to be in a higher tax bracket at retirement. With higher contribution limits, the Roth option may also be attractive to and help retain highly compensated employees. An added advantage of Roth options is the tax-free status of qualified distributions.
"We’re excited to be able to offer our customers more options," said Maura Kautsky, Retirement Services Vice President of Marketing. "Our ultimate goal is to help our customers reach their retirement planning goals. Choices, coupled with education, position our customers for retirement saving success."
The Economic Growth and Tax Relief Reconciliation Act (EGTRRA), passed in 2001, paved the way for the Roth option to be added to retirement plans beginning in 2006. The Roth option has been available to AUL plan participants since July 5.
For those who are unsure whether or not the Roth option is right for them, a Roth calculator is available on AUL’s Retirement Services Web site at http://www.eretirement.aul.com
About AUL’s Retirement Services division
Through its Retirement Services division, AUL is an experienced provider of retirement plan products and services to the small and mid-sized employer market. Its retirement products were introduced in 1963, and today AUL provides products and services to more than 12,000 active retirement plans with nearly half a million participants and more than $8 billion in retirement plan assets. Please visit us on the Web at http://www.eretirement.aul.com
Qualified retirement plans from AUL are funded by an AUL group variable annuity contract. While a participant in an annuity contract may benefit from additional investment and annuity related benefit under the annuity contract, any tax deferral is provided by the plan and not the annuity contract.
Registered group variable annuity contracts issued by AUL are distributed by OneAmerica Securities, Inc., Member NASD, SIPC, a Registered Investment Advisor, P.O. Box 1984, Indianapolis, IN 46206, (317) 285-1877, which is a wholly owned subsidiary of AUL.
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