| You should know before making one of the most | | | | benefits at the opposite end is the IRA. |
| important decisions of your financial life that there are | | | | With the IRA, or individual retirement account, the |
| a vast variety of different retirement plans for us to | | | | amount a person can contribute pretax is connected |
| choose from, and seeking professional advice may be | | | | to the amount earned in wages. |
| the best way to figure out what fits you best. Going | | | | Using an IRA makes sense if your contributions are |
| into your future financial planning with a general | | | | fully deductible or your contributions are partially |
| knowledge of what's available out there to make your | | | | deductible and you won't need the money before age |
| money work for you is a necessity. | | | | 59 1/2, or if you're already maxing out your 401K. |
| We all need to save more for our retirement years. | | | | Within the category of IRA's, there are many different |
| The biggest issue and deciding factor of how much | | | | types. The Keogh Plan is designed for a self employed |
| you have at retirement is twofold. | | | | person or a partnership. |
| First, how early you begin to save has a significant | | | | For small businesses to set up retirement plans, there |
| impact on the end result. Second, the type of | | | | is the simplified employee pension or SEP plan. With |
| retirement account can mean the difference between | | | | the Roth IRA, the contributions made are not tax |
| retiring rich and retiring "comfortably". | | | | deductible, however, the returns will be distributed |
| You should know before making one of the most | | | | tax-free. |
| important decisions of your financial life that there are | | | | When contributing to a Roth IRA, your plan would be |
| a vast variety of different retirement plans for us to | | | | that you'll pay less in taxes now than the rate you'd |
| choose from, and seeking professional advice may be | | | | pay in retirement. |
| the best way to figure out what fits you best. | | | | You would also want to confirm with your financial |
| The retirement plan we are probably all the most | | | | advisor any tax benefits you may receive now for |
| familiar with is the 401K plan. This plan is sponsored by | | | | making contributions to your IRA, if any, as this can |
| our place of employment. The employee makes his or | | | | significantly reduce your taxable income in some |
| her specified contribution per paycheck. | | | | cases. |
| Not every employer offers a 401k, but most bigger | | | | A rollover IRA is meant for people who are retiring |
| corporations offer it as an incentive for their | | | | and receiving money from a 401K or for people who |
| employees to take advantage of. | | | | are leaving a job. |
| The contributions to a 401 are made pretax, and are | | | | There are more variations to investing for retirement |
| withdrawn directly from the individual's paycheck. | | | | and far more detail to each kind of retirement account. |
| Whatever an individual earns on these contributions | | | | Review your own personal financial situation, your age |
| may compound and remains tax-free until the | | | | (big rule of thumb, the earlier the better), your income |
| employee has it distributed upon retirement. | | | | and other variables to determine which investment |
| The next retirement plan, and perhaps the second | | | | option is best for you so you can retire with peace of |
| most well-known and commonly utilized for it's tax | | | | mind. |