AIM Investments(R) Launches Roth 401(k) Contribution Option.HOUSTON -- AIM Investments announced today the launch of a designated Roth 401(k) contribution option to the AIM Solo 401(k)(R) program. Effective today, plan participants Plan participants Employees or other beneficiaries who are eligible to receive benefits from a company's employee benefit plan. may begin making designated contributions into their AIM Solo 401(k) plan. The primary benefit of the ability to make Roth contributions is that they are made after-tax. Therefore, the investment earnings will not be taxed when they are withdrawn from the plan at retirement, if withdrawn in accordance with applicable rules. To add the Roth 401(k) option to an existing AIM Solo 401(k) Plan, plan sponsors must amend their plan documents by Dec. 31, 2006. Amendments will be mailed by AIM later this year. Unlike the Roth IRA Roth IRA An individual retirement plan that bears many similarities to the Traditional IRA. Contributions are never deductible, and qualified distributions are tax-free. A qualified distribution is one that is taken at least five years after the taxpayer established his/her first , there are no adjusted gross income (AGI (Artificial General Intelligence) A machine intelligence that resembles that of a human being. Considered impossible by many, most artificial intelligence (AI) research, projects and products deal with specific applications such as industrial robots, playing chess, ) limits for participants making designated Roth 401(k) contributions. All participants in plans that offer this feature are eligible. "Investors who anticipate retiring in a higher tax bracket Tax Bracket The rate at which an individual is taxed due to a particular income level. Notes: Each income class is taxed at a different level. Generally, the more you make the more you are taxed. than they are currently in may benefit the most from choosing to make a Roth 401(k) contribution," said Kathryn Capage, First Vice President and Strategic Planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. Director for Tax-Advantaged Products in A I M Distributors, Inc. "Additionally, investors whose income exceeds the limit for a Roth IRA or are looking to diversify their tax liability may also benefit from this new feature. Certainly, investors should consult their tax advisors about the benefits of the traditional versus the Roth 401(k) for their particular situations. "We believe the new Roth 401(k) investment option can be a beneficial enhancement for our clients who work with certain individuals already using or whom may best be served by opening an AIM Solo 401(k) plan." AIM Investments was one of the industry's early providers of individual or "solo" 401(k) plans, rolling out its first in 2002 after the approval of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA EGTRRA Economic Growth and Tax Relief Reconciliation Act of 2001 (also known as EGTRAA 2001) ) of 2001. The AIM Solo 401(k) plan is designed for owner-only businesses - those with no employees other than the owner's spouse and no plans to add employees in the near future. The Plan offers: --Flexibility: Both salary deferrals and profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of contributions are discretionary. You do not have to make deferrals or a profit sharing contribution each year. --Rollovers: Rollovers from other eligible plans, including traditional IRAs Traditional IRA An IRA that is not a Roth IRA or a SIMPLE IRA. Individual taxpayers are allowed to contribute 100% of compensation (Self-employment income for Sole proprietors and partners) up to a specified maximum dollar amount to their Traditional IRA. , are permitted, giving you an opportunity to consolidate your retirement assets. --Tax benefits: Contributions are tax deductible, and earnings accumulate on a tax-deferred basis. --Loans: Loans are available. --Low cost: Costs for an AIM Solo 401(k) are substantially less than those of a standard 401(k). More information about AIM's lineup of retirement products can be found in the Retirement section of www.AIMinvestments.com. About AIM Investments Houston-based AIM Investments represents one of the nation's leading investment management companies. It is dedicated to building solutions for its clients with exceptional products and services through multiple investment management styles and a broad range of investment portfolios - mutual funds, retirement products, separately managed accounts for high-net-worth and institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. , annuities, cash management, college savings plans, and offshore products. Founded in 1976, AIM Investments had $129 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. as of Sept. 30, 2005. For more information, visit www.aiminvestments.com. AIM Investments is a service mark of A I M Management Group Inc. A I M Advisors, Inc., A I M Capital Management, Inc., and AIM Private Asset Management, Inc., are the investment advisors Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and for the products and services represented by AIM Investments. A I M Distributors, Inc. is the distributor for the retail mutual funds and Fund Management Company is the distributor for the institutional money market funds represented by AIM Investments. About AMVESCAP A I M Management Group Inc. is a subsidiary of AMVESCAP PLC, a leading independent global investment manager, dedicated to helping people worldwide build their financial security. Operating under the AIM, INVESCO and Atlantic Trust brands, AMVESCAP strives to deliver outstanding products and services through a comprehensive array of retail and institutional products for clients around the world. The Company, which had approximately $381 billion in assets under management as of Sept. 30, 2005, is listed on the London, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Toronto stock exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. with the symbol "AVZ." Additional information is available at www.amvescap.com. Note to editors -- We are required to include the following information with our news release: Consider the investment objectives, risks, and charges and expenses carefully before investing. For this and other important information about any AIM fund, please obtain a prospectus from your financial advisor and read it carefully before investing. A I M Distributors, Inc., Distributor |
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