A Simplified Employee Pension (SEP IRA) is a type of employer sponsored retirement plan that allows the employer to save money for themselves and their employees on a tax-deferred basis. This type of plan offers low administrative costs and easier management than plans like a 401(k). Key Benefits: Only the employer can make contributions…
457 plans are employer sponsored, non-qualified deferred comp plans for some non-profit or state and local government employees. For those seeking to maximize their retirement savings, a 457 plan can be utilized in addition to 401(k) or 403(b) plans. Key Benefits: Contributions made through payroll deductions Taxes are deferred until distributions are made Penalty free…
A 403(b) is an employer sponsored retirement plan for non-profit organizations that makes it easy for employees to save for retirement through payroll contributions. With pre-tax contributions, you can save on taxes, and some plans even offer employer contributions to get you even closer to your retirement goals. Key Benefits: Additional catch-up contributions can be…
SIMPLE 401(k)s are employer sponsored retirement plans available to small businesses with 100 or fewer employees. As the name implies, it is a hybrid plan that shares ease of management, low cost, and lack of discrimination testing requirements like SIMPLE IRAs with the availability of a loan feature found in a 401(k). Key Benefits: Both…
A Roth 401(k) is an employer sponsored retirement plan that makes it easy for employees to save after-tax dollars for retirement through payroll contributions. Roth is well-suited for people anticipating being in a higher tax bracket during retirement. Key Benefits: Contributions are not tax deductible Qualified distributions are tax-free No income limitations like Roth IRAs…
A Roth IRA is a retirement account that allows you to save after-tax dollars towards retirement. Once you’re ready to take withdrawals from the account, they are tax free and penalty free as long as they occur after age 59 ½ and once the account has been open for at least 5 years. Key Benefits:…
Anyone younger than age 73 with earned income can utilize Traditional IRAs to reduce their current tax liability and save for retirement. One of its greatest advantages is the tax-deferred growth of your investment. Key Benefits: Contributions are tax deductible if certain conditions are met Taxes deferred until distributions are made Penalty free distributions…
