The first and second quarter interest rate is 3.60% on monies received by June 23, 2025.  That rate beats many CD rates being offered and there are tax advantages to this program.  Please read below for the details.

The American Senior Benefits Association (ASBA) has contracted with Independent Plan Coordinators, Inc. (IPC) to offer its members the opportunity to voluntarily establish their own Individual Retirement Account (IRA: Traditional or Roth) and/or Non-Qualified Tax-Deferred Annuity Account.  There is no mandatory minimum contribution amount and no administration fees are assessed.

As an ASBA Supplemental Retirement Participant, you have the option of contributing to either a fixed rate product where the funds are placed with the Lincoln National Life Insurance Company at the then quarterly prevailing interest rate.  Participants receive quarterly statements and confirmations of all contributions.

Available Account Types

Participants may choose IRA accounts and/or Non-Qualified Tax-Deferred Annuities.  For IRAs, Traditional IRAs and Roth IRAs are available.  The maximum contribution amount for the 2025 tax year is limited to 100% of earned income up to $14,000 for joint filers (up to $7,000 each) and $7,000 for singles. These limits are subject to change annually. Participants age 50 or older during the tax year may contribute an additional $1,000.  This is a combined maximum for all Traditional and Roth IRAs you hold. 

TRADITIONAL IRA - All or part of your contributions may be deductible. The determining factors for deductibility are the income restrictions and eligibility to participate in an employer-sponsored qualified retirement plan.

ROTH IRA - Contributions are non-deductible.  Earnings, however, are tax-free provided the account has been open at least five tax years and you are at least 591/2 when you begin withdrawals. The availability of this type of IRA is phased out according to your Adjusted Gross Income. Please refer to the IRS website for contribution limits on Roth IRAs.

Under the ASBA Supplemental Retirement Plan, you may roll over your accumulated balance in a qualified retirement plan into a Traditional IRA without tax consequences.  You may also transfer or roll over a Traditional IRA into another Traditional IRA, or a Roth IRA. You may transfer a Roth IRA to another Roth IRA.  You should be certain that you understand the tax consequences before executing any transfer.  

There is no age requirement for having to take a Roth IRA withdrawal. Please refer to the IRS website for Traditional IRA Required Minimum Distributions.

Fixed Rate Product Offering

(A.M. Best is a global full-service credit rating agency dedicated to serving the financial and health-care service industries. It began assigning credit ratings in 1906.  A.M. Best's ratings are independent opinions regarding the creditworthiness of an issuer or debt obligation.  Their Credit Ratings are based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile, or, where appropriate, the specific nature and details of a debt security.)

The interest rate is 3.60% on all contributions received by June 23, 2025. New contributions received by June 23, 2025 will earn 3.6% guaranteed through December 31, 2025. For calendar year 2026, a guaranteed rate will be determined on a semi-annual basis on 2025 contributions, but can be no less than 1.5%. Your principal and earned interest are guaranteed by Lincoln National Life Insurance Company and is based on continued claims paying ability of Lincoln National Life Insurance Company.

Withdrawals

Withdrawals are processed as of the 15th and last calendar day of the month, for forms received 5 business days prior to the withdrawal date in good order. You may request withdrawal forms from IPC via calling (800) 368-3515, or you can download them from our website.

Premature Distributions

Generally, distributions received prior to age 59 1/2 that are not due to death, disability, transfer or rollover are subject to a 10% IRS Penalty Tax as follows: (1) Traditional IRA - on the full amount withdrawn; (2) Non-Qualified Deferred Annuity - on interest earnings only; (3) Roth IRA – some withdrawals may be penalty-free and some may even be tax-free. However, the combination of several factors, including your age and whether the account has been open at least five tax years will affect the taxability. Consult your tax advisor for more details.

There is a 5% surrender charge associated with withdrawals (including transfers and rollovers) if you have been a Plan Participant for less than 5 years under the Lincoln National Life contract.  The surrender charge drops to 4% in year 6; 3% in year 7; 2% in year 8; and 1% in year 9.  This surrender charge will not be assessed at all if the Participant is (1) 591/2 and retired or (2) disabled or (3) deceased.  Please note that the surrender charge is completely eliminated after year 10.  Please also note that your first contribution to the ASBA Supplemental Retirement Plan is what is used to determine the surrender change.

Enhanced Plan Features

You may withdraw up to 50% of your accumulated interest earnings once per year without surrender charge. Each lump sum contribution of $10,000 or more per participant that you make in 2025 will be credited with an additional .05% for 2025. These features are subject to change at any time.

Tuition Rewards

There is no limit as to how many student family members an SRP participant may sponsor.  For example, a grandparent can sponsor all of his/her grandchildren, grandnieces and grandnephews.  

See how Tuition Rewards works in more detail.

Available Retirement Options

Summary

If you would like to take advantage of the many benefits of the ASBA Supplemental Retirement  Plan, please  download the Enrollment Form and then send it along with your contribution to IPC at the following address:

(800) 368-3515