EDUCATOR'S DIRECT

Have questions? We have answers! Take a look at our most frequently asked questions for more information about ING Educator's Direct and 403(b) plans in general. If you don't find the information you need, click on "Customer Service" to get in touch with us.

What is a 403(b) program?

A 403(b) program is a tax deferred retirement plan available to employees of educational institutions and certain tax-exempt organizations. Contributions and investment earnings in a 403(b) program grow tax deferred until withdrawn, at which time they are taxed as ordinary income. Withdrawals prior to age 59½ may be subject to an IRS 10% premature distribution penalty tax. See IRS Publication 571 - Tax-Sheltered Annuity Plans (403(b) Plans) for Employees of Public Schools and Certain Tax-Exempt Organizations for more information regarding 403(b) programs. You can also obtain this document by calling 1-800-829-3676 or on the IRS website at www.irs.gov.

What is the ING Educator's Direct Program?

ING Educator's Direct is a 403(b)(1) variable annuity program, issued by ING Life Insurance and Annuity Company, which allows for investment in target date funds (Target Date funds target a certain date range for retirement, or the date the investor plans to start withdrawing money. Investors can select the fund that corresponds to their target date. They are designed to rebalance to a more conservative approach as the date nears. An investment in the Target Retirement Fund is not guaranteed at any time, including on or after the target date).

What are the fees associated with ING Educator's Direct?

Here are the fees associated with ING Educator's Direct:

• Administrative Fee: 0% (ING reserves the right to charge up to 0.25% on an annual basis)
• Withdrawal Charge: 0%
• Mortality and Expense Fee: 0%
• Fund Expenses: Fund management fees and other fund operating expenses will apply. These vary by fund. Please see the vING Index Solution Portfolios Fund Prospectus for details.
• Maintenance Fee: $30/year
• Loan Initiation Fee: $0 (please note that a portion of the loan repayment is retained by ING)
• Third Party Administrator (TPA) Fees: If your school district utilizes a TPA that charges ING, we may assess a TPA Fee charge on individual accounts.

For complete details, please refer to the vING Educator's Direct Variable Annuity Prospectus.

How much could I contribute to ING Educator's Direct?

In 2012, you can generally defer through salary reduction up to $17,000.

Note: This limit includes deferrals made to a 403(b)(1) annuity contract and a 403(b)(7) custodial account and certain other retirement plans. Other limitations may apply. Please consult with a tax professional for more information about the contribution limits under your 403(b) program.

What are the ING Index Solution Portfolios^SM?

The target date funds made available through ING Educator's Direct are the ING Index Solution Portfolios. The ING Index Solution Portfolios are funds designed to meet the needs of investors who prefer a single diversified investment that has an investment objective that is consistent with their risk tolerance and the anticipated length of time until they retire. The Index Solution Portfolios invest primarily in a combination of underlying index mutual funds that, in turn, invest directly in a wide range of portfolio securities (like stocks and bonds). Each ING Index Solution Portfolio has a target goal year associated with it which is used to determine the asset allocation mix among equity and/or fixed-income funds. The allocation mix is altered accordingly as the target goal year nears. This allows you to pick the fund with the date closest to your target goal year, and the portfolio manager uses the asset allocation process to determine each Portfolio's investment mix.

Which ING Index Solution Portfolio should I invest in?

Each Index Solution Portfolio is designed to accommodate a range of retirement years. You can choose a portfolio based on when you plan to retire. (See the chart below).   

There is no guarantee that any investment option will achieve its stated objective. Principal value fluctuates and there is no guarantee of value at any time, including the target date. The "target date" is the approximate date when you plan to start withdrawing your money. When your target date is reached, you may have more or less than the original amount invested. For each target date Portfolio, until the day prior to its Target Date, the Portfolio will seek to provide total returns consistent with an asset allocation targeted for an investor who is retiring in approximately each Portfolio's designation Target Year. The Target Year is specified in the Portfolio's name. For example, the ING Index Solution 2045 Portfolio bears an asset allocation that the investment adviser believes balances the risk and return objectives of the "average" investor who will be retiring in the year 2045. With the exception of ING Solution Growth and Income Portfolio, ING Solution Growth Portfolio, ING Solution Income Portfolio and ING Index Solution Income Portfolio, each Portfolio is structured and managed around a specific target retirement or financial goal date ("Target Date") as follows: 2055, 2045, 2035, 2025 and 2015. The ING Solution Growth and Income Portfolio, ING Solution Growth Portfolio, ING Solution Income Portfolio and ING Index Solution Income Portfolio are for those who are retired, nearing retirement or in need of drawing down income from their Portfolio soon. Prior to choosing a Target Date Portfolio, investors are strongly encouraged to review and understand the Portfolio's objectives and its composition of stocks and bonds, and how the asset allocation will change over time as the target date nears. No two investors are alike and one should not assume that just because they intend to retire in the year corresponding to the Target Date that that specific Portfolio is appropriate and suitable to their risk tolerance. It is recommended that an investor consider carefully the possibility of capital loss in each of the target date Portfolios, the likelihood and magnitude of which will be dependent upon the Portfolio's asset allocation.

On the Target Date, the Portfolio's investment objective will be to seek to provide a combination of total return and stability of principal consistent with a low to moderate risk asset allocation which is targeted to the "average" retiree.

Stocks are more volatile than bonds, and portfolios with a higher concentration of stocks are more likely to experience greater fluctuations in value than portfolios with a higher concentration in bonds. Foreign stocks and small and midcap stocks may be more volatile than large cap stocks. Investing in bonds also entails credit risk and interest rate risk. Generally investors with longer timeframes can consider assuming more risk in their investment portfolio. The ING Index Solution Portfolios are target date portfolios that are actively managed with respect to how their asset allocation is adjusted over time, yet are indexed with respect to how the underlying strategies within the suite are managed. Each underlying strategy seeks to replicate the performance of the index which is associated with its asset class. The portfolios may merge with or change to other portfolios over time. Refer to the prospectus for more information about the specific risks of investing in the various asset classes included in the ING Index Solution Portfolios.

You should consider the investment objectives, risks, charges, and expenses of the variable product and its underlying fund options carefully before investing. The prospectus contains this and other information, and can be obtained on this website. Please read the information carefully before investing.

Can I rollover amounts from another retirement plan to ING Educator's Direct?

Yes. Generally, ING Educator's Direct will accept contributions that are considered rollover eligible amounts from other 403(b) programs, 401(a)/(k) plans, and governmental 457(b) plans, as well as traditional individual retirement annuities/accounts. You are not permitted to roll over amounts distributed from a 457(b) plan sponsored by a non-governmental, tax-exempt employer.

When can I withdraw amounts from ING Educator's Direct?

Employee Deferrals (including earnings) may generally be distributed upon your:

• Attainment of age 59½
• Severance from employment
• Death
• Disability, or
• Hardship

Note: Hardship withdrawals are limited to Employee Deferrals made after 12/31/88:

Exceptions to the above distribution rules: No IRC withdrawal restrictions apply to:

• '88 cash value (Employee Deferrals (including earnings) as of 12/31/88)
• Employer Contributions (including earnings)

Are loans offered in ING Educators Direct?

Loans are offered only if selected by your employer. Loans will reduce your account balance. Please contact your employer for further information.

How will my payroll office know I have enrolled?

As part of the online enrollment process, you will need to complete the Salary Reduction Agreement provided and submit it to your employer's payroll office.

Neither ING or its affiliated companies or representatives provide tax or legal advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.