Eaton Vance is offering a tax-managed account designed for investors
whose qualified retirement plans have hit their contribution limits.
The Supplemental
Retirement Account (SRA), as described by the company, provides
investors with a systematic way to accumulate retirement savings.
As a nonqualified
plan, the account does not have contribution limits, distribution
requirements or income restrictions. It is also ineligible for tax
deferrals, but Eaton Vance says, "Tax management techniques and
strategies are used in managing the underlying mutual funds to minimize
investor taxes."
SRA investments
are made in a diversified portfolio of tax-managed equity and
tax-exempt municipal income mutual funds selected by the program
participant, according to Eaton Vance.
Among the features
of the account is "dynamic asset allocation," which allows program
participants to select starting and ending asset allocation targets and
a final target date.
The product
requires a minimum investment of $20,000 and a commitment to make
systematic investments of at least $500 per month.
Each account
carries a $30 setup fee and an annual maintenance fee of $30. Investors
are also responsible for the expenses of the underlying mutual funds,
according to Eaton Vance.