Individual Retirement Account (IRA)
An Individual Retirement Account (IRA) allows you to save for retirement with tax benefits. Contributions may be tax-deductible, and earnings grow tax-deferred until withdrawal, typically in retirement.
Key Benefits:
- Tax Deduction: Contributions to a Traditional IRA are tax-deductible in the year you make them.
- Tax-Deferred Growth: Earnings are not taxed until you withdraw them in retirement.
- Contribution Limits: Contribution limits apply and are updated annually by the IRS.
Eligibility:
Any U.S. resident under the age of 70½ with earned income can open an IRA.
Contribution Limits:
The annual contribution limit is set by the IRS and can change each year. Be sure to check the current limits.
401(k) Retirement Plan
A 401(k) is an employer-sponsored retirement savings plan that allows you to contribute a portion of your salary to retirement, often with matching contributions from your employer.
Key Benefits:
- Employer Matching: Many employers match your contributions, effectively providing "free money".
- Tax-Deferred Growth: Contributions are not taxed until you withdraw them.
- Contribution Limits: The annual contribution limit is set by the IRS and may vary each year.
Eligibility:
Generally available to employees working for an employer who offers a 401(k) plan.
Withdrawals:
Funds are taxed at your marginal tax rate when you withdraw them from your 401(k).
Roth IRA
A Roth IRA is a retirement savings account where contributions are made with after-tax dollars, but withdrawals are tax-free in retirement. This offers a different tax advantage than a traditional IRA.
Key Benefits:
- Tax-Free Withdrawals: Earnings and withdrawals are tax-free after age 59½.
- Flexible Contributions: You can withdraw contributions anytime without penalty.
- Contribution Limits: The annual contribution limit is set by the IRS.
Eligibility:
Available to U.S. residents with earned income under certain income limits.
Contribution Limits:
The contribution limits vary based on income levels and filing status. Be sure to check with the IRS for current limits.
Pension Plans
Pension plans are employer-sponsored retirement plans that provide a fixed income upon retirement, typically based on salary and years of service. These plans are often provided to employees as part of their benefits package.
Key Benefits:
- Guaranteed Income: Provides a steady income in retirement, often based on a predetermined formula.
- Employer Contributions: Employers typically contribute to the pension plan, reducing the burden on employees.
- Tax Deferral: Contributions grow tax-deferred until withdrawal.
Eligibility:
Available to employees of businesses that offer pension plans.
Withdrawals:
Funds can be withdrawn once the individual reaches retirement age, usually 65 or older.
Plan Administration and Management
Effective administration of your savings and pension plans is key to achieving your financial goals. We offer services to help you manage your accounts, stay compliant with tax regulations, and maximize your retirement savings.
Our Services Include:
- Annual contribution tracking to avoid over-contribution.
- Investment strategies tailored to your goals and risk tolerance.
- Plan consolidation for better management of multiple accounts.
- Tax reporting to ensure you claim all applicable deductions.
Contact Us for personalized assistance in managing your savings and pension plans.