Essentials Of 403 B Plans Foreducators
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- Most teachers retire with 67% of their highest 3-year average salary from the Teacher Retirement System (TRS), which for many is not enough to live on. Contributing to a 403(b) retirement plan can help avoid this income gap upon retirement. - 403(b) plans allow pre-tax contributions up to $16,500 per year for those under 50 and an additional $5,500 catch-up contribution for those over 50. There are also catch-up provisions for those with 15+ years of service. - Contributions and earnings grow tax-deferred, and can be withdrawn as retirement income subject to taxes and potential penalties if taken before age 59.5. Minimum distributions are
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Introduction Comment by Exploring Series: This is listed as a Heading 2, but it should be Heading 1. Please change this heading to a Heading 1 style.
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A cash balance plan combines aspects of a defined benefit plan and defined contribution plan. Employer contributions are determined by a formula based on factors like age and compensation, and participant accounts grow with an interest credit. Contributions can be larger for older participants due to time value of money principles allowing for greater benefits. A case study shows how a dental practice used a cash balance plan along with a 401(k) plan to increase total retirement plan contributions for the owner to over $200,000 while reducing required contributions for other employees.
2017 Individual Tax Planning Supplement
This document provides an overview and tips for 2017 individual tax planning. It summarizes key tax rates, deductions, credits, and strategies to consider for reducing tax liability for the year. Potential tax reform proposals could change rates and provisions for 2018, so the document recommends planning based on current tax law and taking advantage of opportunities before year-end 2017 to be effective in mitigating taxes. It includes charts outlining various tax rates, limits, phaseouts and considerations for married and unmarried filers.
2016 Individual Tax Planning Supplement
The right tax strategy stays current with your environment.
The political landscape isn’t the only thing changing in
2016. Estate planning opportunities are also shifting. This
supplement incorporates estate planning updates and other
considerations into tips designed to decrease your 2016 tax
bill. Charts throughout the supplement, including tax rates,
qualified retirement plan limitations and FICA/Medicare
taxes further help with your tax planning.
investing for Long-Term Goals (Retirement-College)
This document provides information on investing for long-term financial goals like retirement and college. It discusses factors to consider for retirement planning like current age, projected retirement age, life expectancy, sources of retirement income, expenses, and risk tolerance. It also covers retirement savings vehicles like IRAs, employer plans, and annuities as well as investing strategies for different stages of life. The document emphasizes starting to save early, maximizing employer matches, estimating expenses, and developing a retirement income plan.
2006 Legislative Update Handout
- Virginia updated its individual income tax laws for 2006 and 2007.
- For 2006, fixed-date conformity was extended to include additional federal acts. Tobacco quota payments and the low-income credit were modified. New credits were introduced for long-term care insurance and military family relief.
- For 2007, subtractions were added for certain death benefits and energy efficient purchases. The estate tax was eliminated.
- Automatic 6-month filing extensions are now granted, but tax balances due still accrue penalties if over 90% of the liability isn't paid by the original due date. Late filing penalties apply only if returns are more than 6 months past due.
Retirement Plan Rollover
The document discusses retirement plan options when leaving a job, including rolling funds over to a new employer's plan if it accepts them, rolling funds over to a traditional IRA, having funds paid directly to you, or leaving funds in the former employer's plan if permitted. It notes that having funds paid directly results in taxes and potential penalties. The document also describes annuity options through American General Life and Accident Insurance Company that provide tax-deferred growth, easy access to funds, and guaranteed lifetime income.
Retirement planrolloverseminarshow
The document discusses retirement plan options when leaving a job, including rolling funds over to a new employer's plan if it accepts them, rolling funds over to a traditional IRA, having funds paid directly to you, or leaving funds in the former employer's plan if permitted. It notes that having funds paid directly results in taxes and potential penalties. The document also describes annuity options through American General Life and Accident Insurance Company that provide tax-deferred growth, easy access to funds, and guaranteed lifetime income.
Six Strategies to Help Retirees Reduce Taxes
http://ekinsurance.com/financial/retirement/
Learn how retiree can reduce the taxes they pay to keep more of their income.
Tax diversify your retirement income
The Tax Diversify Your Retirement Income with Life Insurance sales presentation will help you understand the importance of tax diversification and the benefits that a Custom Whole Life (CWL) policy can provide. In addition to the traditional benefit of death benefit protection, the cash value of the CWL policy accumulates tax-deferred and can generally be accessed on a tax-free basis*.
Use the concept presentation and other materials to discuss how life insurance not only provides death benefit protection, but can also be a tax diversification tool.
Contact me if you would like to discuss
*The cash value is accessed through policy loans, which accrue interest at the current rate, and cash withdrawals. Loans and withdrawals will decrease the total death benefit and total cash value. The supplemental retirement income is not guaranteed.
2016 Retirement Quick Reference Guide
This document provides a quick reference guide comparing features of various retirement plans including IRAs, SEP/SAR-SEP IRAs, SIMPLE IRAs, SIMPLE 401(k)s, profit sharing/money purchase 401(k)s, and defined benefit plans. It outlines details such as annual contribution limits, eligibility requirements, deadlines, vesting schedules, and taxation of distributions for each type of plan. The guide is intended to help individuals and employers understand their options for tax-qualified retirement savings plans.
401(k) / IRA Rollover Options
This document provides an overview of retirement plan rollover options for those changing jobs or retiring. It discusses leaving money in a former employer's plan, rolling over to a new employer's plan, rolling over to an IRA, or taking a cash distribution. It notes potential tax implications and advantages of each option, such as continuing tax-deferred growth or avoiding penalties. It also provides tips for evaluating options like consolidating accounts, using special situations strategies, reviewing investments and goals, and seeking expert advice.
401k Decay
This document discusses options for handling 401(k) funds when changing jobs or retiring to avoid "401(k) decay", which is the erosion of the 401(k) balance due to taxes on lump sum withdrawals. It provides an example of how cashing out a 401(k) balance results in paying significant taxes and penalties, and missing out on decades of tax-deferred growth. The best options to avoid taxes and penalties are rolling funds into an IRA or keeping them in the previous employer's plan.
Income tax entitlements
A list of provisions provided for planning savings and investments as part of your Income Tax planning. This is a beginner's guide to introduce yourself to several possible provisions.
Tax Alert - Preparation Key to Managing Tax Rate Increases
Canada will see new federal and provincial tax rates in 2016 following a change in government. Top personal income tax rates are expected to increase in most provinces, which property owners and business owners should consider in their 2015 tax planning. Strategies such as prepaying taxes in 2015, altering the mix of salaries and dividends, maximizing TFSA contributions, and deferring RRSP deductions can help mitigate the impact of rising tax rates next year. Advanced planning is recommended for those who will face higher taxes to develop the most beneficial overall tax strategy.
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Essentials Of 403 B Plans Foreducators
- 1. Essentials of 403 b plans Especially for Educators
- 11. 403(b) Taxability Pre- Tax Contributions Subject to minimum distribution rules at age 70½ Taxed as ordinary income when withdrawn* Tax deferred earnings
- 17. Tax Incentive Means Greater Savings For You! Note that Mary brings home $25.00 more than John. Over 20 years and 24 pay periods per year Mary is able to bring home$12,000.00 more than John. $ 0.00 $ 25.00 Tax Savings $1,535.34 $1,560.34 Net Pay $ -100.00 $ 0.00 After Tax Savings $ -236.66 $ -211.66 Taxes Due $1,872.00 $1,772.00 Taxable Income $ -0.00 $ -100.00 Before Tax Savings $ -128.00 $ -128.00 TRS $2,000.00 $2,000.00 Gross John Mary
- 18. Understanding the Significance of Tax Deferral