OneAmerica is a well-known provider of retirement savings plans for individuals and businesses. They offer a variety of options, including the OneAmerica 457(b) Plan. This plan has been around for over 25 years and has proven to be popular among employees.
In this guide, we will provide an overview of the OneAmerica 457(b) Plan, including reviews, benefits, fees and ratings.
OneAmerica 457(b) Plan - Reviews, Benefits, Fees & Ratings Table of Contents
What is a OneAmerica 457(b) Plan?
A OneAmerica 457(b) Plan is a retirement savings plan that allows you to set aside money for your future. The money in your account grows tax-deferred, and you can take withdrawals starting at age 59½.
You may also be able to take penalty-free withdrawals for certain expenses, such as buying a first home or paying for medical expenses.
How Does a OneAmerica 457(b) Plan Work?
A OneAmerica 457(b) Plan works by allowing employees to set aside a portion of their income before taxes are taken out. This money is then invested and grows tax-deferred until it is withdrawn, at which point it is taxed as regular income.
What Are The Key Features of a OneAmerica 457(b) Plan?
There are a few key features that make a OneAmerica 457(b) Plan stand out from other retirement savings options.
First, contributions to a OneAmerica 457(b) Plan are made on a pretax basis. This means that the money you contribute is deducted from your paycheck before taxes are taken out.
Second, the money in your OneAmerica 457(b) Plan grows tax-deferred. This means that you won't have to pay taxes on the money until you withdraw it at retirement. Finally, withdrawals from a OneAmerica 457(b) Plan are taxed as ordinary income.
What Commissions and Management Fees Does a OneAmerica 457(b) Plan Come With?
If you're looking for a retirement savings plan that doesn't come with high fees, the OneAmerica 457(b) Plan might be a good option for you. This plan has no annual maintenance fee and only charges a 0.25% administration fee.
There's also no commission charged on trades. However, keep in mind that there is a minimum balance required to open an account - $500 for individuals and $1000 for employer-sponsored plans.
What Are The Advantages of a OneAmerica 457(b) Plan?
A OneAmerica 457(b) Plan offers a number of advantages, including:
- The ability to save for retirement on a tax-deferred basis.
- The ability to make catch-up contributions if you're age 50 or over.
- The flexibility to take distributions from your account at any time, for any reason (subject to income taxes and possible withdrawal penalties).
- The ability to roll over your account balance to another eligible retirement plan, including a OneAmerica 401(k) Plan, upon termination of employment.
What Are The Disadvantages of a OneAmerica 457(b) Plan?
The disadvantages of a OneAmerica 457(b) Plan are that there is a high minimum balance required to open an account, and the fees can be quite high.
Additionally, the investment options are limited, and there is no death benefit. For these reasons, many people choose not to invest in a OneAmerica 457(b) Plan.
What Are Some Alternatives to a OneAmerica 457(b) Plan?
There are many alternatives to a OneAmerica 457(b) Plan, and the best option for you will depend on your unique circumstances. If you're looking for an investment vehicle with lower fees, or one that offers more flexibility, there are plenty of options out there. Here are a few to consider:
VanguardTarget Retirement Funds
These funds offer a low-cost option for investors looking to save for retirement. They're also well-diversified, which can help reduce risk.
Fidelity ZERO Large Cap Index Fund
This fund offers zero expense ratios, making it one of the most cost-effective options available. It's also diversified across large cap stocks, which can help reduce risk.
Schwab S&P 500 Index Fund
This fund tracks the performance of the S&P 500, making it a good choice for investors who want to track this widely-followed index. It's also very low cost, with expense ratios of just 0.03%.
iShares Core S&P 500 ETF
This ETF tracks the performance of the S&P 500, making it a good choice for investors who want to track this widely-followed index. It's also very low cost, with expense ratios of just 0.07%.
These are just a few of the many options available to investors. The best way to find the right investment for you is to consult with a financial advisor. They can help you assess your goals, risk tolerance, and time horizon to find the right solution for your needs.
How Do You Open a OneAmerica 457(b) Plan?
You can open a OneAmerica 457(b) Plan through your employer or on your own. If you're opening it through your employer, they will provide you with the necessary paperwork. If you're opening it on your own, you can contact OneAmerica directly to set up an account.
The process for setting up a OneAmerica 457(b) Plan is relatively simple. Once you have the necessary paperwork, you'll need to fill it out and submit it to OneAmerica. After that, you'll need to make an initial deposit into your account. The minimum deposit amount will vary depending on the provider.
Once your account is set up, you can start contributing to it. You can contribute as much or as little as you want, but there are contribution limits in place. For 2019, the contribution limit is $19,000. If you're over the age of 50, you can contribute an additional $6000.
What is The Minimum Amount Required to Open a OneAmerica 457(b) Plan?
The OneAmerica 457(b) Plan has a minimum opening balance of $500. This is a great option for those who want to start saving for retirement, but don't have a lot of money to put away each month.
What Are The OneAmerica 457(b) Plan Contribution Limits?
There are a few things to consider when it comes to the OneAmerica 457(b) Plan contribution limits.
First, you have to think about your salary. If you make less than $100,000 per year, you can only contribute up to $18,500 annually. If you make more than that, you can contribute up to $24,500 annually.
The other thing to consider is your age. If you're over 50, you can contribute an additional $6000 per year. This is known as a catch-up contribution and it's designed to help people who are closer to retirement make up for lost time.
Finally, you have to think about the amount of money you have in your account. If you have more than $25,000 in your account, you can only contribute $15,000 per year.
What Are The Eligibility Requirements for a OneAmerica 457(b) Plan?
To be eligible for a OneAmerica 457(b) Plan, you must:
- Be at least 18 years old.
- Have a valid Social Security number.
- Be employed by a participating employer.
- Not already have an existing OneAmerica 457(b) Plan account.
Do You Pay Taxes On a OneAmerica 457(b) Plan?
The short answer is no, you do not pay taxes on a OneAmerica 457(b) Plan. The long answer is a bit more complicated. When you contribute to a 457 plan, the money goes into the account pretax. This means that you have already paid taxes on this money. When you withdraw the money in retirement, it is taxed as income.
When Can You Withdraw Money From a OneAmerica 457(b) Plan?
Assuming you have already fulfilled the vesting requirements, you can withdraw money from your OneAmerica 457(b) Plan at any time. However, if you withdraw money before you reach age 59½, you may be subject to a ten percent early withdrawal penalty.
You may also be able to take out a loan from your OneAmerica 457(b) Plan. Loan terms and conditions will vary depending on the plan, but typically you can borrow up to 50% of your vested account balance, with a maximum loan amount of $50,000.
How Does a OneAmerica 457(b) Plan Compare to a 401K?
There are a few key ways in which a OneAmerica 457(b) Plan differs from a 401K.
One key difference is that with a 457(b) Plan, you can start withdrawing money without penalty as soon as you turn 55. With a 401K, you typically have to wait until you're 59. Another key difference is that the money in your 457(b) Plan is not subject to income tax, while the money in your 401K is.
What Assets Are Available With a OneAmerica 457(b) Plan?
OneAmerica offers a wide variety of investment options with their 457 plans, including:
- Mutual funds
- Stocks and bonds
- Exchange traded funds (ETFs)
- Money market funds
- Fixed annuities
You can also choose to have your account professionally managed by OneAmerica's team of financial advisors.
Why Do People Use a OneAmerica 457(b) Plan?
The 457 plan is a retirement savings plan that is offered by many public and some private employers. It allows employees to save for retirement on a tax-deferred basis. This means that the money you contribute to your 457 account grows tax-free until you withdraw it at retirement.
457 plans are an attractive option for employees because they offer a number of benefits. For example, many 457 plans allow you to contribute more money than you can to a 401(k) plan. In addition, the money in your 457 account is always 100% vested, which means you will never lose it if you leave your job.
Another advantage of a 457 plan is that you can typically access your money before you retire. If you have a financial emergency, you can usually take a loan from your 457 account. This is not the case with a 401(k) plan, where early withdrawals are typically penalized.
Does a OneAmerica 457(b) Plan Accept Rollovers?
A OneAmerica 457(b) Plan can accept rollovers from other eligible retirement plans, including 401(k)s, 403(b)s, governmental 457(b)s and IRAs. The process is simple and can be done online.
OneAmerica does not charge any fees for rollovers and the funds can be moved over within a few days. There are no income taxes due on the rollover either.
How Long Does It Take to Transfer to a OneAmerica 457(b) Plan?
The process of transferring to a OneAmerica 457(b) Plan can take up to 60 days. This timeline may be extended if there are any errors in the transfer process. If you're looking to transfer your retirement savings to a OneAmerica 457(b) Plan, it's important to start the process as soon as possible.
How Do You Put Money Into a OneAmerica 457(b) Plan?
The first step is to contact your employer and ask if they offer the OneAmerica 457(b) Plan. If they do, you'll need to complete a enrollment form and submit it to your employer.
Once you're enrolled, you can start contributing to your account. You can make contributions via payroll deduction or by making direct deposits from your personal bank account.
Can You Open a OneAmerica 457(b) Plan For a Child?
The answer is unfortunately, no. The reason for this is that a 457 plan is an employer-sponsored retirement savings plan. This means that it can only be opened by an eligible employee of the sponsoring organization.