Retirement
As life expectancies increase, planning for a comfortable financial future is more important than ever. There are many ways to save for retirement, which is a great way to use a portion of your current income to plan for your future.
Retirement Plan Options
There are seven main options among retirement plans in the United States:
- Individual retirement accounts (IRAs) allow tax-deferred contributions capped by IRS regulations. Funds withdrawn at retirement are taxable as regular income.
- Roth IRAs allow after-tax contributions capped by IRS regulations. Qualified withdrawals are not penalized, and earnings grow tax-free.
- 401(k) accounts are employer-sponsored retirement plans that allow participants to contribute to pre-tax. Many employers offer to match a portion of employee contributions.
- Roth 401(k) plan contributions are made with after-tax dollars, but qualified withdrawals are not taxed or penalized like Roth IRAs.
- Simple IRAs are designed for self-employed people who want to contribute part of their pay. These plans reduce income taxes in proportion to the contribution up to the limits.
- SEP IRAs also tend to work well for self-employed people. Contributions are tax-deductible, and contribution limits are higher than with other retirement plans.
- Employee stock ownership plans (ESOPs) are designed to invest in company stock. An employer may choose to contribute to employee retirement plans with company stock.
Work with a financial advisor to better understand each of these retirement options. The information on this page is intended for educational purposes only and should not be construed as legal or financial advice.
To Start Saving for Retirement, Contact:
Michele Lantz
Advisory Representative
(661) 810-5499
[email protected]
Michele assists our corporate clients with their 401k, 403b (b), Defined Benefit, and Non Qualified plans as an Advisory Representative through Pensionmark Retirement Group. For further information on Retirement plans and Michele Lantz go to www.Pensionmark.com.