Tax-Deferred Plans: 403(b) What Does the Future Hold for You? (Taxes are generally due upon withdrawal from a tax-deferred plan) This presentation contains

Tax-Deferred Plans: 403(b)

What Does the Future Hold for You?

(Taxes are generally due upon withdrawal from a tax-deferred plan)

This presentation contains information regarding insurance products for sale.

2© 2010 ING North America Insurance Corporation

This educational presentation is being provided to you by the ING family of companies.

Insurance products, annuities, and funding agreements issued by ING Life Insurance and Annuity Company (ILIAC) One Orange Way, Windsor, CT 06095, and/or annuities are issued by ReliaStar Life Insurance Company, Minneapolis, MN, both of which are solely responsible for meeting their obligations. Plan administrative services provided by ILIAC or ING Institutional Plan Services, LLC.

Securities are distributed by ING Financial Advisers, LLC (member SIPC). Securities may also be distributed through other broker-dealers with which ING Financial Advisers, LLC has selling agreements.

© 2010 ING North America Insurance Corporation 3011521.X.P-5 C10-0831-022 (11/10)

Disclosure


Social Security

Pension payments from employerYour 403(b), other personal investments and earned income

In 2005, 30 out of every 100 workers received Social Security benefits and by 2050, that number is expected to grow to 50 our of every 100 workers.1

How will you support your future objectives?

Sources of retirement income for today’s retirees

1 Annual Trustees’ Report, Social Security Finances, A Primer; August 2008. Pie chart source: Employee Benefit Research Institute (EBRI) estimates from the Current Population Survey, March 2009.

40%

20%

40%


Pension payments from employer

Your 403(b), other personal investments and earned income

79%

21%

Sources of retirement income for today’s retirees

80%

20%

Pie chart source: Employee Benefit Research Institute (EBRI) estimates from the Current Population Survey, March 2009.


Source: National Center for Health Statistics, Health, United States, 2008, (Table 25)

Collecting a paycheck

65 75 85 95

Living off income

age82

age82

Females have a 50% chance of living past ...

Your expenses don’t end when you retire

Males have a 50% chance of living past ...

age85

age85

25 35 45 55

A healthy 65-year old man or woman may need to live without a paycheck for as long as they lived with one.


Due to inflation, how much will your current income be worth in 20 years?

$30,000

$25,000

$20,000

$15,000

$10,000

$5,000

$0 Today In 5 years In 10 years In 15 years In 20 years

$30,000$25,878

$22,323

$19,256$16,610

Assumptions: $30,000 annual salary and 3% rate of inflation.

Effects of Inflation


With ING’s Educators’ Financial Analysis (EFA), you and your financial professional can run a report on your financial status in just 15 minutes!

IMPORTANT: The illustrations or other information generated by EFA regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.

Will you have enough to fund your retirement?


Catch-up contributions can help make up for lost time

You can contribute an additional $5,500 above the 2011 annual limit of $16,500. The limit is subject to annual cost of living adjustments.

If you are over age 50 . . .

If you have 15 years of service . . .Additional catch-up contributions are available to certain employees who have 15 years of service or more.

Catch-up contributions can help reduce your retirement income shortage.

Income Needs and Sources
















*Assumes a 25% Federal tax bracket. Taxes are due upon withdrawal of assets from the plan.

A tax-deferred plan allows pre-tax contributions which can turn $75 into $100.

Out of every $100 . . .

You could let the government take $25 in taxes* and save only $75 . . .

Or you could put $100 into a tax-deferred plan.


A special catch-up may be available to employees who have had at least 15 years of service with an:

• Educational organization

• Hospital

• Home Health agency

• Health and Welfare agency

• Religious organization

For 2014, the potential additional contribution is $5,500*

* A calculation is required to ascertain eligibility.

Special 15-year Catch-Up


Enjoy the benefits of current tax deferral

Need to take home as much of your pay as possible

Expect to be in a lower tax bracket in retirement

Consider a traditional 403(b) if you. . .


Based on the illustration assumptions described below, a lump-sum distribution from the 403(b) plan after 20 years may be worth $34,174 (exclusive of tax penalties for early withdrawal).

This illustration assumes current and future federal income tax rates of 25%. State income tax (if applicable) is excluded from the illustration. Income tax is due upon distribution from the tax-deferred plan. A 15% annual capital gains tax has been applied to the after-tax savings account.

This illustration is intended to show the impact of pre-tax and after-tax investing and illustrate investment growth potential of each. The assumed hypothetical investment growth per year is shown for illustrative purposes only and is not indicative of any specific investment or investment vehicle. Systematic investing does not assume a profit or protect against loss. You should consider your ability to continue investing in up as well as down markets. These figures do not include fees or expenses that the product would assess, including mortality and expense risk charge (M&E), a daily asset charge and an administrative fee. If included, these fees would reduce the figures of the tax-deferred product shown above. Refer to the prospectus/prospectus summary/information booklet for more information about fees. Lower maximum tax rates on capital gains and dividends would make the investment return for the taxable investment more favorable, thereby reducing the difference in the performance between the accounts posted above. Consider your personal investment horizon as well as your current and anticipated income tax bracket when making an investment decision, as these may further impact the results of this illustration. Bear in mind that changes in tax rates and tax treatment of investment earnings may impact the comparative results.

Tax-Deferred vs. Taxable Investments

$45,565$45,565

$30,899$30,899

Estimated Account Accumulation$100 invested monthly for 20 Years at 6.00%

403(b) contribution (pre-tax)

Savings account (after-tax)


Pay yourself first!

When you don’t see it, you don’t miss it.

Contributions are automatically deducted from your pay.

And you don’t spend it!

Payroll deductions make contributing painless!


Source: Saving Fitness; A Guide to Your Money and Your Financial Future, U.S. Department of Labor, Employee Benefits Security Administration. September 2008.

Rule of thumb . . .

Early stages of your work life 10-15%

Later stages of your work life

Review every two to three years and adjust

accordingly.

How much to save and when to begin


The ING Difference

1 LIMRA International, Not-For-Profit Sales and Assets Survey, Q2, 2010 results. ING has determined the ranking using the LIMRA data.

ING has provided retirement products and services to 1,493,996 Public Markets participants throughout the United States and features award-winning communications, flexible technology, and local, personal service.1

We are dedicated to helping you reach your personal retirement objectives.


Simply go to

www.ingretirementplans.com

Try ING’s Online Calculators

Documents

Tax-Deferred Plans: 403(b) What Does the Future Hold for You? (Taxes are generally due upon withdrawal from a tax-deferred plan) This presentation contains