Supplemental Retirement Annuities offer you an easy and affordable way to accumulate important personal savings for retirement. Your contributions come from your salary automatically, before you get your paycheck - and before taxes are taken out. Because you report less current income, you pay less taxes on your earnings. All of your contributions go straight toward your retirement, free of federal taxes until you begin receiving income later on. Here is an example of how you save:
|Pre-tax Savings||Savings in a Taxable Account|
|Annual Gross Salary||$30,000||$30,000|
|6% of Pay Before-Tax Contribution||-$1,800||$0|
|Less 28% Federal Income Tax||-$7,896||-$8,400|
|6% Regular Savings in a Taxable Account (from gross salary)||$0||-$1,800|
|Annual Difference in Take-Home pay||$504|
**Chart assumes the employee is married and that the standard deduction and personal exemptions have already been taken into account in the spouse's salary.