Non-Taxable Plans to Supplement 401 (k) and 403 (b)

The maximum amount a participant can defer into a 401(k) or 403(b) plan in 2007 is $15,500 not to exceed 25% of income. In addition, there is a "Catch-up" provision that allows people Age 50 and older to invest an additional $5,000. As such, persons Age 50 and over will be able to invest a total of $20,500.

For those wishing to do more, and without any limit, a Variable Life Insurance policy designed to emulate an investment represents your best available option. While the funds invested have already been taxed, you can eliminate future taxation on all earnings and growth. Even the removal of funds to create an income can be done without paying any income tax.

While the life insurance does create costs, they are only a fraction of the income tax that you might have otherwise paid. The end result is a cash flow that is 40% to 60% greater than what would have been available had the funds remained invested in a taxable environment.

For complete information on how we can set up a Non-Taxable Supplemental Plan for you, including a personalized illustration, contact us at 1-888-PLAN AHEAD or at info@vbscorp.com.

*VBS is NOT a securities dealer. VBS has representatives who are registered with member firms of the NASD through whom all securities are offered.