NEWPORT BEACH, Calif. -- (BUSINESS WIRE) -- Pacific Life will offer a Roth 401(k) option beginning April 1, 2006. Available within its Individual(k) program, small business plan participants will have the option to designate their contributions as pre-tax salary deferrals or after-tax Roth contributions. Pacific Life’s Portfolio Optimization Funds, five asset allocation “fund-of-funds” ranging from conservative to aggressive, are the investment options.
The Roth 401(k) is similar to the Roth IRA in that qualified distributions may be tax- free. Roth 401(k) plans have higher annual contribution limits than Roth IRA – $15,000 versus only $4,000 for individuals in 2006 ($20,000 versus $5,000 if age 50 or older). Unlike the Roth IRA, the contribution maximum is not phased out for higher income individuals. “This is one of the best opportunities to accumulate assets for tax- free income later on. Flexible tax-planning options, automatic diversification and ease of use are key in planning for retirement,” said Kathleen McWard, CFP®, Vice President of Marketing, Annuities & Mutual Funds Division. “Our moderate, moderate aggressive and aggressive funds all outperformed the S&P 500® in 2005 – even after adjusting for fees. By using an ‘Easy-Score Questionnaire,’ finding the right fund for your personal risk tolerance is a simple process.”
Pacific Life works with BISYS® Retirement Services, Inc., a leader in the 401(k) industry, who is responsible for providing an IRS-approved plan document, along with recordkeeping and administrative services. For information regarding the Pacific Life Individual(k) Program, contact the Advanced Marketing Department at (800) 722-2333, extension 3939.
Founded in 1868, Pacific Life provides life insurance products, individual annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. Pacific Life counts more than half of the 100 largest U.S. companies as clients1 and is a member of Insurance Marketplace Standards Association (IMSA), whose membership promotes high ethical standards for the sale of individual life insurance and annuities.
1Data compiled by Pacific Life using the 2004 FORTUNE 500® list, as of April 2005.
You should carefully consider a mutual fund’s investment objectives, risks, charges, limitations and expenses. This and other information about Pacific Funds are in the prospectus available from your registered representative or by calling (800) 722-2333. Read the prospectus carefully before investing.
Share values will fluctuate and, when redeemed, may be worth more or less than the original cost. Visit www.PacificLife.com for returns as of the most recent month-end and calendar quarter.
No bank guarantee, Not a deposit, Not FDIC/NCUA insured, May lose value, Not insured by any federal government agency.
Pacific Life Insurance Company, Pacific Select Dis tributors and Pacific Funds do not provide any individual(k) plan or 401(k) plan administrative services. Please contact your plan administrator for any questions relating to your plan. Pacific Life and its representatives do not give tax or legal advice. You should consult your tax adviser and attorney regarding your specific situation.
Pacific Funds are distributed by Pacific Select Distributors Inc. (member NASD & SIPC), a subsidiary of Pacific Life Insurance Company, and are available through licensed third-party broker/dealers.
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