Retirement Savings Accounts

Retirement planning

When you are young and just starting a professional life, retirement might be the last thing on your mind. However, if you ask any retired person, or someone entering retirement, what advice they would give you about planning for that day, chances are they’ll say: Start as soon as you can!

Why Retirement Savings Accounts Are Important

The best way to assure you have a comfortable retirement, is to select a retirement savings account/s that matches your retirement objectives – and start saving as much and as frequently as you can! Without such accounts to help you, or with the wrong type of savings accounts, you’ll likely find it extremely hard to meet your retirement savings goals.

What We Can Do for You

As you start planning to save for retirement, you’ll likely have many questions that you need answered:

  • When should I start saving?
  • How much should I save?
  • How much will I need for a “comfortable” retirement?
  • What’s the best vehicle for me to save for my retirement years?
  • Which account from my retirement savings should I tap into first?

Our Retirement Savings specialists will help address all of your questions. We’ll also help you make informed decisions about which types of savings vehicles are right to meet your particular retirement goals. Not all retirement savings accounts are designed the same. For instance, some have yearly maximum contribution limits, and others have associated planned distribution criteria. Violation of those rules can lead to IRS-imposed premature withdrawal penalties.

Our Retirement Savings Account specialists will help you navigate the multitude of saving options available to you, some of which include:

  • Individual Retirement Account (IRA): This is the most commonly used savings account available to most Americans saving for their retirement. Where a company-sponsored retirement plan isn’t available, IRAs can be used as a way for tax-deferred savings. Over the period while you work, tax-deductible “contributions”, up to an eligible amount, can be made into the account. You only pay taxes when you withdraw funds in retirement.

    Often IRA’s have contribution limitations and tax consequences for early withdrawals. Distributions from traditional IRA’s and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59 ½, may be subject to an additional 10% IRS tax penalty.

  • Roth IRA Account: Roth IRAs differ somewhat from traditional IRAs, (which allows for tax-deferred growth of retirement savings), in that the money deposited into these accounts is from “after-tax” dollars. Subsequently, when you make withdrawals from your Roth account, you are not taxed. Additionally, your savings within the account also grow tax-free.

    To qualify for the the tax-free and penalty-free withdrawal or earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 ½ or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes.

  • Simplified Employee Pension (SEP) IRA: Some employees may have access to employer-sponsored SEP-IRA accounts. These are similar to traditional IRAs, but may offer higher contribution limits and employer matching funds depending on the circumstances.
  • Savings Incentive Match Plan for Employees (SIMPLE) IRA: This is yet another retirement saving plan available to working Americans saving for their retirement. SIMPLE-IRA plans mandate an employer-matched contribution, and are ideal for smaller business (less than 100 employees).
  • Traditional 401(k) or Roth 401(k) plans: Many employers offer staff traditional 401(k) plans or Roth 401(k) plans to their employees. In some cases, for instance, where an employer matches 100% of your contribution up to a certain amount, these retirement savings accounts often make sense to join. We’ll help you decide whether participating in your employer-sponsored retirement plan is the best fit for your personal objectives.  
  • Value-added services: We’ll not only help you choose the right retirement savings accounts for you, but we’ll ensure they are the most cost-effective and tax-advantaged for your particular situation. If you switch jobs, we’ll also advise you on whether it makes sense to Rollover, Stay, Move or Cash out from an employer-sponsored retirement savings plan.

Contact us today to learn more about retirement savings accounts.