How are contributions to my tax deferred annuity plan invested?
Money you contribute is invested at your direction in one or more of a variety of investment options offered by your plan. These options are managed by some of the most reputable and recognized names in the mutual fund industry. Most plans offer annuity contracts with both fixed and variable investment options. The fixed options guarantee principal and interest. The variable options provide “variable” returns, which are not guaranteed. The rate of return you receive on a variable option may increase or decrease depending upon the performance of the investments in the underlying portfolio. The selection of investment options available to you may change from time to time. How much can I contribute on a tax-deferred basis? Generally, in 2007 you may contribute to your 403(b) plan the lesser of $15,500 or 100% of compensation, unless you are eligible for Catch-up Contributions of $5,000 additional ($20,500 total).
