IRAs are tax-deferred savings plans, to help working individuals become prepared for their future retirement. These savings plans must be established and operated in compliance with IRS guidelines. With that said, there are certain requirements and limitations that have been put in place. One specific element of an IRA that has limitations relates to contributions. A common question that clients ask is “what are the IRA contribution limits?” Getting familiar with the different types of … [Read more...] about What are the IRA Contribution Limits?
IRA and Retirement Planning
When to Start Retirement Planning
Everyone should have a retirement plan in place, because being prepared for retirement does not happen on its own. In many cases, having an IRA along with Social Security benefits will not be sufficient, if you want to retire comfortably. When to start retirement planning can be a concern for many of us. While you should start planning sooner, rather than later, you may not have everything you need to create an effective plan just yet. The first step is to start saving for retirement When … [Read more...] about When to Start Retirement Planning
What is an SEP IRA?
Traditional Individual Retirement Accounts, or IRAs, are not the only type of IRA that is available. There are IRAs that are established by individuals and those that are employer-sponsored. Employer-sponsored IRAs include matching contributions. A SEP IRA is one specific kind of IRA that is perfect for small business owners, as an alternative to the standard profit sharing plan for employee retirement. The benefits of an SEP IRA SEP stands for “Simplified Employee Pension.” This is how it … [Read more...] about What is an SEP IRA?
How is a Roth IRA Different From a Traditional IRA?
IRAs are a common and valuable tool for retirement planning. An IRA allows you to plan, save and invest in your retirement, with added tax benefits. There are various types of IRA accounts available, including individual accounts, as well as, employer-sponsored accounts. If you are trying to choose which type to create for yourself, know that a Roth IRA and a traditional IRA are different in some ways. What is an IRA, basically? An IRA, which stands for Individual Retirement Account, is a … [Read more...] about How is a Roth IRA Different From a Traditional IRA?
Who Can Put Money into an IRA?
When it is time to start planning for your retirement, you should know that Social Security retirement benefits alone will not likely be sufficient to ensure a comfortable retirement. The only way to secure your retirement years is to plan ahead by saving and investing. One of the best, and most common, ways to do this is through an Individual Retirement Account or IRA. Clients who have already established an IRA, often ask who can put money into an IRA? This article will discuss the … [Read more...] about Who Can Put Money into an IRA?
Which is Better: IRA or 401k?
Unless you happen to be independently wealthy, planning for your retirement should be a concern for you. The possibility of retiring on Social Security benefits alone is not very realistic. Most working age Americans are at somewhat familiar with 401ks and IRAs, as they are very common retirement tools. However, many clients want to know which is better, IRA or 401k? As with most things, there are both pros and cons associated with IRAs and 401ks. Deciding which retirement tool is the best for … [Read more...] about Which is Better: IRA or 401k?
Does bankruptcy affect retirement planning?
When individuals find themselves in financial distress, they often consider whether to file for bankruptcy. In that situation, it is common to be concerned about losing assets. A particular worry is: how does bankruptcy affect retirement planning? Will you be able to keep your retirement benefits, you worked so hard to obtain? Some retirement benefits are protected, depending on how you handle them. Cashing out before filing for bankruptcy Actually, cashing out your retirement account … [Read more...] about Does bankruptcy affect retirement planning?
How to Convert to a Roth IRA
If you have a traditional IRA or employer-sponsored retirement plan, you have the option of converting those retirement accounts to a Roth IRA. In fact, making the conversion is very easy, especially if you understand how to convert to a Roth IRA. You can choose to transfer some or all of your existing retirement account balance to your new Roth IRA, regardless of income. Why convert? Converting to a Roth IRA can be an attractive option, especially if you expect your tax rate to increase in … [Read more...] about How to Convert to a Roth IRA
When it is Time to Access Your IRA
You have been faithfully contributing to your Individual Retirement Account over the years, and now you are wondering if you can access those funds without penalty. When it is time to access your IRA, there are a few limitations and exceptions that you should be familiar with. While you can technically withdraw money from your IRA at any time, if you want to do so without penalty, it depends on your age and the purpose of your withdrawal. Early withdrawal penalties for IRAs The early … [Read more...] about When it is Time to Access Your IRA
How Do IRA Withdrawals Get Taxed?
Although Social Security should provide a portion of your retirement income, Social Security benefits alone will not guarantee a comfortable living for most individuals after retirement. So, obviously, retirement planning is critical if you want to enjoy your golden years. An IRA is one type of investment tool that can be used for retirement planning. However, most clients ask specifically how IRA withdrawals get taxed during retirement. Individual Retirement Accounts and how they work An … [Read more...] about How Do IRA Withdrawals Get Taxed?
