Saving For Retirement

Our Financial Advisors work with clients of all career paths and career stages to develop plans to achieve their retirement goals. Whether you are just starting out, changing careers or toward the end of your work life, let our Financial Advisors design a custom investment portfolio that achieves your goals. We can help you to find a retirement plan option that can work for you. There are a number of retirement strategies available, so please feel free to contact us so we can help you to learn more. We have outlined some basic principles of account options below:

Roth IRA

The Roth IRA, first enacted in 1989, is an account whereby individuals can deposit after tax dollars to save for retirement. There are a number of benefits of the Roth IRA. A sample of the benefits include:

  • Tax Free Growth
  • Distributions from a Roth do not increase Adjusted Gross Income
  • Earnings up to a $10,000 lifetime cap can be withdrawn tax free if used to acquire a principal residence.
  • There is no Required Minimum Distribution required after the account owner reaches 70 ½.
  • Individuals over age 50 can contribute higher amounts than the stated limits due to the catch up provision enacted by the Economic Growth and Tax Relief Reconciliation Act of 2001

Typically, people who participate in a company sponsored retirement plan are restricted from deducting further contributions to retirement accounts from their taxable income. Because of this limitation, the Roth account is a great option as those non-deductible deposits made to a traditional IRA account would only grow tax deferred not tax free as they would under a Roth IRA. By using a Roth IRA, individuals can experience tax free growth of their assets. There are income and deposit limitations to this type of account so please discuss this with your advisor who can help you determine if this account is suitable for you.

Traditional IRA

First established in 1974 under the Employee Retirement Income Security Act, the Traditional IRA account is used by individuals to save for retirement. Notable features of the Traditional IRA are:

  • Contributions may be tax-deductible depending on strict IRS guidelines.
  • Earnings in the account can grow on a tax deferred basis.
  • Assets held in the account may be protected from creditors.
  • At age 70 ½, owners of a Traditional IRA will have to start taking Required Minimum Distributions.
  • Assets held within a Traditional IRA are subject to a tax penalty of 10% if the account owner were to remove funds prior to age 59 ½.
  • Individuals over age 50 can contribute higher amounts than the stated limits due to the catch up provision enacted by the Economic Growth and Tax Relief Reconciliation Act of 2001.
  • Employer Sponsored Retirement Plans.

Establishing a company sponsored retirement plan can be an important tool for attracting and retaining quality employees. We offer a number of qualified plans including Simplified Employee Pension (SEP) plans, SIMPLE, 401(k), Individual (k), 403(b) and Defined Benefit Pension Plans as well as others. Learning all the intricate details of the different qualified plans can be a daunting task. Once the plan is established, a plan sponsor must follow strict regulations to stay in compliance with regulations outlined by the IRS and the Employee Retirement Income Security Act of 1974 (ERISA).

Our team can help you find retirement plan design consultants to help you determine which plan and which plan design features are most suited for you and your employees. Going forward, we can help you to implement your plan and monitor the plan over time in effort to stay in compliance with regulations.