The company also announced that it has enhanced its administrative systems and developed a communications program designed to educate its clients on the benefits offered through Roth accounts.
As of January 1, 2006, employers may offer their employees the ability to contribute to new Roth accou nts through their 401(k) and 403(b) plans. AIG VALIC’s administrative systems have been enhanced to meet all the new recordkeeping requirements of Roth accounts.
The plan sponsor literature created by AIG VALIC explains the new Roth accounts, describes potential benefits and challenges, and outlines the steps in the process in adding the Roth features to a 401(k) or 403(b) plan. Plan participant literature explains the features, benefits and suitability requirements of the Roth accounts and encourages careful consideration before directing contributions to a Roth account.
Also, all VALIC financial advisors now have access to an interactive and customizable software tool installed on their notebook computers especially for the Roth accounts. With this calculator, VALIC financial advisors can help compare traditional pre-tax contributions to after-tax Roth account contributions.
For more information go to www.aigvalic.com or call -800-448-2542.