IPC - Natrip Supplemental Retirement Plan

NATRIP Supplemental Retirement Plan

The interest rate is 3.60% on all contributions received by

June 23, 2025.

Independent Plan Coordinators, Inc. (IPC), located in Virginia Beach, VA, administers the National Association of Tax Reducing Income Plan (NATRIP) Supplemental Retirement Plan. The NATRIP Plan allows you to voluntarily establish your own Individual Retirement Account (IRA: Traditional or Roth) and/or Non-Qualified Tax-Deferred Annuity Account.

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

Lincoln National Life Insurance Company has a history of outstanding investment performance and is a leader in the industry with over 100 years of experience, assuring us of both expertise and unquestioned reliability. Lincoln National Life Insurance Company's financial strength is rated "A" by A.M. Best and gives Lincoln National Life Insurance Company a ranking of "Excellent". These ratings reflect claims paying ability but are not a guarantee of future performance. The Lincoln Financial Group had $324 billion in assets under management as of September 30, 2024.

(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.)

Download Enrollment Form

10-year Historical Product Performance - Single Contribution

IPC has been helping individuals plan for their retirement for over 40 years! In that time, individuals have used many methods of funding their retirement including rolling over their 401(k) and/or using inherited monies or a Certificate Deposit in a single contribution. These individuals appreciate the fact that there are no administrative or other fees which results in their entire original principal contribution earning interest. Additionally, through our partnership with Sage Scholars since January 2010, these individuals have also earned Tuition Rewards points that can be redeemed as tuition discounts at hundreds of participating private four-year colleges and universities. (More details on the Tuition Rewards Program is below.)

Actual examples of single contributions made on January 2, 2013 and how that contribution performed over the next 10 years follows:

Contribution on 1/2/2013	Account Balance on 12/31/2022	Tuition Rewards Points Earned
$25,000	$33,509.80	6,485
$50,000	$67,019.60	12,970
$75,000	$100,529.40	19,456
$100,000	$135,180.13	26,121
$200,000	$270,360.26	52,243

The program interest rates fluctuate based upon the interest rate environment and that the 10 year analysis from January 2, 2013 through December 31, 2022 reflected above is no guarantee of future performance. It is also important to note, however, that there is a contractual minimum guarantee rate of 1.5%.

10-year Historical Product Performance - Monthly Contribution

Another method of building retirement funds is the "pay yourself first" system which has been very successful for many individuals who contribute automatically from their paycheck on a monthly basis. They have set up this automatic contribution from their paycheck so that they don't utilize their retirement savings for discretionary purchases. In other words, "pay yourself first" removes the temptation to skip a month's retirement account contribution and therefore the risk that the funds will be spent on something else.

We receive contributions each month from these individuals and fund their accounts at the program's prevailing quarterly interest rate. Because there is no mandatory minimum contribution amount, some of our participants have been doing this for many years by contributing only $50 per month. Additionally, through our partnership with Sage Scholars since January 2010, these individuals have also earned Tuition Rewards points that can be redeemed as tuition discounts at hundreds of participating private four-year colleges and universities. (More details on the Tuition Rewards Program is below.)

Actual examples of individuals who have "paid themselves first" monthly over the 10 years from January 2, 2013 through December 31, 2022 follow:

Monthly Contribution	Total Principal Contributions	Account Balance on 12/31/2022	Tuition Rewards Points Earned
$50	$6,000	$6,916.78	1,115
$75	$9,000	$10,375.17	1,673
$100	$12,000	$13,833.57	2,230
$150	$18,000	$20,750.35	3,346
Maximum IRA Amount Annualized for Participant Under Age 50	$45,500	$51,737.25	8,075
Maximum IRA Amount Annualized for Participant Over Age 50	$54,500	$61,957.33	9,682

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. 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.

IRA contributions can be made for tax year 2024 until April 15, 2025 or until your 2024 tax return is filed (excluding filing extensions). If any portion of your Traditional IRA contribution is non-deductible, you must file Form 8606 with your tax return. IPC can provide more details on deductibility upon request.

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.

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.

NON-QUALIFIED TAX-DEFERRED ANNUITY - If you wish to make contributions greater than those permitted under IRA regulations, or if you are not eligible to establish a deductible IRA, you may want to participate in the Non-Qualified Deferred Annuity portion of the Supplemental Retirement Plan and have all of the advantages of this tax-deferred annuity plan for your retirement planning. There are no limitations on contributions. You may contribute as much as you wish at any time. Contributions are not tax deductible. However, interest earnings will accumulate on a tax-deferred basis, that is, no taxes will be assessed until earnings are withdrawn. Withdrawals are processed from interest first (IRS Regulations). IRS reporting requirements do not oblige you to indicate contributions to or current interest earnings on a Non-Qualified Deferred Annuity on your Form 1040 (done at time of withdrawal). There are no maximum age limitations for contributions or withdrawals.

Download Enrollment Form

Interest Rates

The interest rate is 3.60% on all contributions received by June 23, 2025. New contributions received by June 23, 2025 will earn 3.60% 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 1.50%.

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.

Participants with total a plan value of $100,000 or more, will earn an additional .05% 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 .05% 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 2024 will be credited with an additional .05% for 2025. These features are subject to change.

Tuition Rewards

Independent Plan Coordinators, Inc. (IPC) has partnered with SAGE Scholars to offer a college savings program to its Supplemental Retirement Plan (SRP) participants called Tuition Rewards. SRP Participants will now have the opportunity to earn Tuition Reward points, similar to other popular rewards programs, which can be redeemed as tuition discounts at hundreds of participating private four-year colleges and universities.

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.

SRP Participants who enroll will earn Tuition Reward points equaling 1.25% of the combined asset balances in their IRA and/or Non-Qualified Tax-Deferred Annuity accounts on a quarterly basis. Every Tuition Reward point can be redeemed for $1.00 in tuition reduction at participating colleges. These guaranteed minimum scholarships are capped at one full year of tuition, spread evenly over four years. Room and board is not included; a college's normal admissions standards apply. The program is limited to participating four-year private colleges and universities.

See how Tuition Rewards works in more detail.

Download Enrollment Form

Available Retirement Options

Your available retirement options include Lump Sum Distribution, Quarterly, Semi-Annual or Annual payout directly from your balance. You may also purchase an annuity guaranteeing you an income from Lincoln National Life Insurance Company. IPC will work with you to select the option that best suits your needs and takes care of all the administrative activities associated with that selection.

Summary

The turbulent financial market has reinforced the need for a stable funding option to meet your retirement planning needs. The NATRIP Plan offers this option to you. In addition, you'll receive outstanding customer service from the staff of IPC who are located in Virginia Beach, VA. Call us at (800) 368-3515 if you would like to discuss the NATRIP Plan in more detail.

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:

Independent Plan Coordinators

P.O. Box 2899

Virginia Beach, VA 23450-2899