Planning for retirement should start during your working years, as early as possible. Whether you are a contracted employee, a salaried employee, or a business owner, the right retirement plan should be implemented.
Types of Retirement Plans
A well-crafted retirement plan will provide you with significant tax savings. The types of retirement plans vary based on whether you are an employee, an independent contractor, or a business owner. The federal government has put several tax incentives in place to inspire workers to set aside money for retirement. The types of retirement plans include:
- IRA: A traditional IRA allows you to contribute to a retirement fund pre-tax. You may be in a lower tax bracket after retirement, with savings.
- Roth IRA: These funds involve contributions after tax, with the fund growing over time tax-free, along with tax-free withdrawals when you retire.
- SEP IRA: A SEP (Simplified Employee Pension Plan) can be established for employees or self-employed individuals. Only the employer contributes to these plans, making them a popular method for retirement planning for self-employed individuals.
- 401K/403B Rollover: Changing jobs or retiring is a major transition—exciting yet uncertain. As you plan your next steps, don’t overlook your 401(k) or 403(b). Your retirement savings are a valuable asset, and making the right decision is crucial. One option is to transfer your funds to an IRA for greater flexibility and control. Market volatility can significantly impact your retirement nest egg, so it’s essential to understand your options and take steps to protect your wealth. Explore a rollover strategy to safeguard your future
Contact us for assistance with retirement planning strategies that suit your situation.
