401(k) Salary Reduction Plan

With a 401(k) Salary Reduction Plan, you make tax-deferred contributions through automatic payroll deduction. Your participation is voluntary, and your employer may choose to also make contributions to the plan.

What are the Benefits of participation in a 401(k) plan?

• You reduce your current income taxes while you boost your retirement investments.
• You can dollar-cost average through convenient payroll deductions.*
• Contributions and earnings are tax-deferred until they are withdrawn.
• You have the flexibility to consolidate your savings in another public sector employer’s 401 plan, a tax-sheltered 403(b) annuity plan, a 457 plan, or a Traditional IRA if you change employers.
• If offered by your employer, you may also participate in a 457 Deferred Compensation Plan.

The ICMA-RC 401(k) Plan Advantage:

• You choose from a wide range of investment options. There are generally no restrictions or charges** for reallocating your investment mix, and all funds offered through ICMA-RC are no-load.
• There are no minimum investment requirements.
• Your designated beneficiaries are entitled to receive all remaining funds in your account in the event of your death.
• You have the most flexible payment options available. You determine the payment schedule that is right for you.
• You control your account even while your are withdrawing assets.

Keep in Mind:

• In most 401(k) Plans you may stop and/or restart your contributions at any time.
• “Ownership” of employer contributions is based on a “vesting” schedule — the extent to which you have a right to employer contributions and associated earnings.
• The extent to which a participant has a right to contributions and benefits derived from plan contributions made by the employer.
• You are always 100% vested in your employee contributions and earnings.
• There are strict Internal Revenue Code limits on the amount you may contribute each year.

*Dollar cost averaging does not assure profit or protect against loss in a declining market. Since dollar cost averaging involves continuous investing, regardless of fluctuating prices, investors must consider their level of comfort in continuing to invest during a declining market.

**Some funds impose redemption fees and transfer restrictions on frequent transfers. Consult the current Vantagepoint Funds Prospectus and Making Sound Investment Decisions: A Retirement Investment Guide for complete details or contact Investor Services.