The interest rate is 2.30% on all contributions received by

December 23, 2023.

As a NATRIP Participant, your contributions are placed with the Lincoln National Life Insurance Company at the then quarterly prevailing interest rate, currently 2.30%.  There is no minimum contribution amount and no administration fees are assessed.  Participants receive quarterly statements.

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10-year Historical Product Performance - Single Contribution

10-year Historical Product Performance - Monthly Contribution

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 2023 tax year is limited to 100% of earned income up to $13,000 for joint filers (up to $6,500 each) and $6,500 for singles. 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 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.  Minimum required distributions (MRDs) for Traditional IRAs must begin at age 70 1/2 if you reached that age by December 31, 2019, or age 73 if you reached that age after January 1, 2023.  MRDs must begin by April 1 of the year following the year in which you attain MRD age.  If you wait until that year, your second MRD is due by December 31. For Roth IRAs there is no age requirement for withdrawals.

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Interest Rates

Each lump sum contribution of $10,000 or more per participant that you make in 2023 will be credited with an additional .10% for 2023.

Participants with total a plan value of $100,000 or more, will earn an additional .10% over the above rates on their balances from the 2004 contribution year through the current year.   (Please note that balances from contribution years 2003 and prior do not receive the bonus, however the balances from contribution years 2003 and prior are included in calculating the total plan value.)  This bonus of .10% is calculated using balances as of January 1st and July 1st of each year and the bonus is subject to change at any time.

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 entry date into the 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 2023 will be credited with an additional .10% for 2023. These features are subject to change.

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.

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Available Retirement Options

Summary

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