>

Comparison: HRA vs Retirement Programs Comparison of an HRA to a retirement plan   HRA 401(a) or 403(b) with Mandatory Contributions 457 Voluntary 403(b) TSA, Individually Elected Programs Saves FICA taxes Yes Yes No Contributions are tax-free/ tax-deferred Tax-free Tax-deferred Tax-deferred Contributions allow individual choice No No Yes Withdrawals subject to income tax No (State income taxes may apply in certain states. Reimbursements restricted to qualifying expenses.) Yes Yes Withdrawals can be made for any purpose No Limited to medical expenses defined by IRC 213(d) Yes Withdrawals restricted to plan provisions Yes Subject to IRC withdrawal restrictions and plan provision Contribution limits No limit $49,000 $16,500 for 457 plans $49,000 for 403(b) plans (including employer contributions, but excluding any applicable catch-up contributions) Public employers subject to nondiscrimination rules Yes No No #40253 Securities and investment advisory services are offered by VALIC Financial Advisors, Inc., member FINRA and an SEC-registered investment advisor.