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Question
#1: |
What
is the interest rate? |
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Answer
#1: |
New contributions received by December 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%. |
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Question
#2: |
What
is the interest rate on existing money? |
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Answer
#2: |
The quarter's interest rates are as follows: |
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Money
from 2003 and
prior 3.50% |
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Money from 2004 to 2024 1.95% |
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Money from 2025 3.60% |
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Question
#3: |
How
can I contribute to my plan?
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Answer
#3: |
Make
checks payable to BB&T, Custodian.
On a separate note, include your association
name, your account number and whether the
contribution is for a Traditional IRA, Roth IRA or
the Non-Qualified Deferred Annuity.
Mail your check to:
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Independent Plan Coordinators |
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P.O. Box
2899
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Virginia Beach
,
VA
23450-2899
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For
contributions by wire please call IPC at (800)
368-3515 for instructions. |
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Question
#4: |
Can
I contribute through my payroll? |
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Answer
#4: |
If
you work for the federal government, we can send you
pre-approved payroll direct deposit forms, or you
can download them via selecting the "Allotment Form"
from the list of available Supplemental Retirement
Plan Forms on this site. If
you have another employer, we cannot do so. We
cannot debit your checking account.
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Question
#5: |
What
is the difference between a Traditional IRA, a Roth
IRA, and a Non-Qualified Tax-Deferred Annuity? |
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Answer
#5: |
Traditional
IRA: To contribute to a Traditional IRA,
you must have earned income. The maximum
contribution for 2025 is 100% of earned income up to $7,000
per year ($8,000 for age 50 and above). For married
couples filing jointly, only one spouse need have
earned income. Contributions may be tax-deductible,
depending on whether you are covered by an employer
plan and based on income levels. Non-deductible
contributions must be reported on Form 8606.
Minimum
Required Distributions must begin April 1 of the
year following the calendar year in which you reach
age 73.
Premature distributions (before age 59 ½) are
additionally penalized 10%, unless they meet certain
exceptions. Qualified distributions (made after age
59 ½) are taxable. |
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Roth
IRA: To contribute to a Roth IRA, you must
have earned income. The maximum contribution for
2025 is 100%
of earned income up to $7,000 per year ($8,000 for
age 50 and above). Contributions are not
tax-deductible.
Please refer to the IRS website for specific Roth IRA
contribution limits. You may withdraw
your own contributions tax free at any time. There
is no maximum age for contributions and no required
distributions. Qualified distributions (made after
age 59 ½ and after the Roth has been open 5 years)
are tax-free. |
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Non-Qualified
Tax-Deferred Annuity: The Non-Qualified
Tax-Deferred Annuity has no restrictions or reporting on
contributions, no earned income requirements and no
required distributions. Interest is tax deferred
until withdrawn. Distributions made prior to age 59
½ are additionally penalized 10% of the interest by
the IRS. |
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Question
#6: |
How
does my contribution grow? |
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Answer
#6: |
Lincoln
Life's general portfolio is primarily invested in
fixed maturity assets, namely high grade corporate
bonds and federal securities, like Ginnie Maes,
Fannie Maes, and treasuries. |
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Question
#7: |
What
are the rules regarding Minimum Required
Distributions (MRDs)? |
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Answer
#7: |
Please refer to the IRS website for specific Minimum
Required Distribution Rules. |
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Question
#8: |
How
can I transfer an IRA I have elsewhere into this
Plan? |
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Answer
#8: |
We
will send you an IRA transfer form for you to
complete and send to the institution currently
holding your IRA. Qualified employer plans
frequently have their own form.
Contact the administrator of your 401(k) or
other plan for details. Federal workers
desiring to transfer their Thrift Savings Plan must
use Form TSP 70 and TSP 70-T, available from Thrift
Savings at (877) 968-3778, or via the
TSP
Forms and Publications website. These forms should
be completed by the participant, then forwarded to IPC for authorization. We will forward them to
Thrift Savings on behalf of the participant.
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Question
#9: |
How
can I transfer my IRA in this Plan to another
institution? |
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Answer
#9: |
Transfers are
initiated by the receiving institution.
Contact the institution where you want the IRA to go
for the necessary forms. Forms received in
good order will be processed in our two monthly
withdrawal windows as defined below in Question #11.
Forms must be the original document(s) signed by the
participant. For the protection of
participants, we do not accept forms that are faxed. |
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Question
#10: |
How
can I transfer an annuity I have elsewhere into this
Plan? |
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Answer
#10: |
If
the annuity is non-qualified (the contributions are
after tax), the tax-free transfer is called a 1035
exchange. We will send you the paperwork to
complete and send to the current insurance company
that holds your annuity. |
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Question
#11: |
How
can I withdraw money and what are my options? |
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Answer
#11: |
Withdrawals
must be requested on a withdrawal form, and you can
obtain one of these forms from the account screen of
this website. Withdrawals are processed on the
15th and last calendar day of each month. We
must have the form no later than 5 business days
prior to those dates, and in good order, for your withdrawal to
be processed. Interest is calculated through
the date of withdrawal. You can set up
withdrawals on a quarterly, semi-annual, or annual
basis, which can be changed whenever you wish.
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Question
#12: |
What
happens to my account when I die? |
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Answer
#12: |
Your account in this plan bypasses probate and passes
directly to the named beneficiary/ies.
For participants with date of death on or after
January 1, 2020, if the
beneficiary is a surviving spouse, a minor child, a
disabled or chronically ill individual, or less than
10 years younger than the decedent, they may transfer the
IRA to their own name as a non-taxable event.
They may also withdraw it, of course. In the
case of a beneficiary not meeting the requirements
noted above, they must
withdraw the IRA within 10 years, and Non-Qualified
Tax-Deferred Annuity within 5 years, following the death
of the original owner's death. The portion of the account that
would have been taxable to the owner is taxable to
the beneficiary as regular income. Please
contact your accountant or tax advisor
regarding inherited deferred annuities.
For
participants with a date of death prior to January
1, 2020, rules prior to the SECURE Act passed in
December 2019 apply. Please contact IPC
regarding the regulations that apply.
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Question
#13: |
What
is a contingent beneficiary? |
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Answer
#13: |
The
contingent beneficiary inherits the account if all
primary beneficiaries pre-decease the owner. |
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Question
#14: |
Is
my account FDIC insured? |
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Answer
#14: |
Only
banks and credit unions are eligible for FDIC
insurance. The funding carrier of the
Supplemental Retirement Plan is Lincoln National
Life Insurance Company, one of the ten largest
insurance companies in the
United
States
, in business over 100 years, and had over $312
billion in assets as of March 31, 2025.
Lincoln
is rated A by AM Best, a company that scrutinizes
insurance companies for claims paying ability and
financial soundness. They are a legal reserve
company, meaning they hold an amount in reserve to
comply with the reserve requirements of all 50
states. State Insurance Commissions also
closely regulate insurance companies doing business
in their state, and
Lincoln
is licensed in all 50 states. |
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Question
#15: |
Are
there maximum or minimum contribution amounts? |
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Answer
#15: |
There are no minimum
contribution amounts, nor any frequency of
contribution required. The only maximums are
those that are federally imposed on IRAs (see #5
above.) |
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Question
#16: |
Are
there penalties for withdrawal? |
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Answer
#16: |
If you have
not been in the plan 10 years, there will be a
surrender charge if the withdrawal is not due to
death, disability, or retirement and attainment of
age 59 1/2. The surrender charge is 5% in
participation years 1 through 5; 4% in year 6; 3% in
year 7; 2% in year 8; and 1% in year 9. |
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Any
withdrawal from a Traditional IRA is fully taxable,
and from the deferred annuity the interest earned is
taxable, and must be withdrawn first. If you
are not yet 59 1/2, the IRS will assess an
additional 10% penalty on any taxable amount you
withdraw, with certain very specific exceptions. |
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Question
#17: |
Are
there any expenses or administration fees? |
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Answer
#17: |
No. |
