If you have savings in an employer-sponsored retirement plan like a 401(k), you have options when you leave your job such as leaving the assets in the employer's plan, rolling them over to an IRA or another employer's plan. There are various factors to consider in making this decision including who controls the assets, available investment options, fees, required minimum distributions, and beneficiary options. An Ameriprise financial advisor can help you evaluate these options and decide what is best for your individual situation based on your retirement goals.
Changing Jobs? Take Your 401(k) and ... Roll It!Dolf Dunn
Dolf Dunn provides advice on options for 401(k) plans when changing jobs. There are two primary options: rolling over the funds to an IRA or to a new employer's 401(k) plan. Rolling over to an IRA provides more investment choices and flexibility to change providers, but a 401(k) may allow loans. Both options have advantages and the best choice depends on individual needs and priorities. The document provides details on factors to consider such as investment options, creditor protection, required minimum distributions, and rules for outstanding loans.
IRA Rollover-What's Right for You - AMIRARRG0514Ted Broker
The document discusses factors to consider when deciding whether to rollover retirement plan assets from an employer-sponsored plan to an IRA. Some benefits of an IRA rollover include consolidating multiple accounts, expanding investment options, and accessing funds before age 59.5 under certain exceptions. However, an IRA rollover may not be suitable depending on individual circumstances such as needing loans, employer stock with special tax treatment, or assets from a SIMPLE plan within two years. The document provides questions to help determine what factors apply and whether an IRA rollover is appropriate based on a person's goals and needs.
Executive Compensation - Some Developments and RemindersQuarles & Brady
This document summarizes recent developments in executive compensation law and regulations. It discusses the Dodd-Frank Act's rules around incentive compensation, which aim to prohibit compensation structures that encourage excessive risk-taking at large financial institutions. It notes these rules may influence practices at non-financial companies as well. The document also reviews IRS Section 409A, which governs deferred compensation, and recent IRS clarifications around its provisions. Key issues covered include compensation deferral requirements, forfeiture provisions, and exceptions to Section 409A's rules.
This presentation discusses Meridian Wealth Management, a boutique financial advisory firm. It notes that Meridian provides general financial advice but not personalized recommendations. It also states that the presentation does not contain all relevant information and is not a replacement for individual research or tax advice. The presentation was accompanied by an oral discussion.
This document discusses options for receiving lump-sum distributions from retirement plans and important tax considerations. The main options are:
1. Directly rolling over the full distribution to an IRA or new employer's plan to avoid taxes and penalties.
2. Establishing a conduit IRA if there is a waiting period to join a new employer's plan.
3. Keeping funds in the old employer's plan if the account balance is over $5,000.
Taking distributions as periodic payments or in company stock can allow withdrawing funds before age 59.5 but special rules apply. It is important to consider taxes, mandatory 20% withholding, and 10% early withdrawal penalties when choosing a distribution option.
This document discusses various types of employer-provided retirement plans and individual retirement accounts. It covers defined benefit plans, defined contribution plans like 401(k)s, deferred compensation, traditional and Roth IRAs, and retirement options for self-employed individuals. Key details include contribution and benefit limits, tax treatment of contributions and distributions, vesting schedules, and eligibility requirements. The learning objectives are to understand and calculate the tax implications of these various retirement savings vehicles.
Randall Webb - TJSDD - Common Pitfalls and Deficiencies Found in Plan AuditsDowney Brand LLP
At the 2015 Savannah Fiduciary Seminar, Randall Webb of TJS Deemer Dana presented the most common deficiencies identified during plan audits and how plan sponsors should correct those deficiencies going forward.
Changing Jobs? Take Your 401(k) and ... Roll It!Dolf Dunn
Dolf Dunn provides advice on options for 401(k) plans when changing jobs. There are two primary options: rolling over the funds to an IRA or to a new employer's 401(k) plan. Rolling over to an IRA provides more investment choices and flexibility to change providers, but a 401(k) may allow loans. Both options have advantages and the best choice depends on individual needs and priorities. The document provides details on factors to consider such as investment options, creditor protection, required minimum distributions, and rules for outstanding loans.
IRA Rollover-What's Right for You - AMIRARRG0514Ted Broker
The document discusses factors to consider when deciding whether to rollover retirement plan assets from an employer-sponsored plan to an IRA. Some benefits of an IRA rollover include consolidating multiple accounts, expanding investment options, and accessing funds before age 59.5 under certain exceptions. However, an IRA rollover may not be suitable depending on individual circumstances such as needing loans, employer stock with special tax treatment, or assets from a SIMPLE plan within two years. The document provides questions to help determine what factors apply and whether an IRA rollover is appropriate based on a person's goals and needs.
Executive Compensation - Some Developments and RemindersQuarles & Brady
This document summarizes recent developments in executive compensation law and regulations. It discusses the Dodd-Frank Act's rules around incentive compensation, which aim to prohibit compensation structures that encourage excessive risk-taking at large financial institutions. It notes these rules may influence practices at non-financial companies as well. The document also reviews IRS Section 409A, which governs deferred compensation, and recent IRS clarifications around its provisions. Key issues covered include compensation deferral requirements, forfeiture provisions, and exceptions to Section 409A's rules.
This presentation discusses Meridian Wealth Management, a boutique financial advisory firm. It notes that Meridian provides general financial advice but not personalized recommendations. It also states that the presentation does not contain all relevant information and is not a replacement for individual research or tax advice. The presentation was accompanied by an oral discussion.
This document discusses options for receiving lump-sum distributions from retirement plans and important tax considerations. The main options are:
1. Directly rolling over the full distribution to an IRA or new employer's plan to avoid taxes and penalties.
2. Establishing a conduit IRA if there is a waiting period to join a new employer's plan.
3. Keeping funds in the old employer's plan if the account balance is over $5,000.
Taking distributions as periodic payments or in company stock can allow withdrawing funds before age 59.5 but special rules apply. It is important to consider taxes, mandatory 20% withholding, and 10% early withdrawal penalties when choosing a distribution option.
This document discusses various types of employer-provided retirement plans and individual retirement accounts. It covers defined benefit plans, defined contribution plans like 401(k)s, deferred compensation, traditional and Roth IRAs, and retirement options for self-employed individuals. Key details include contribution and benefit limits, tax treatment of contributions and distributions, vesting schedules, and eligibility requirements. The learning objectives are to understand and calculate the tax implications of these various retirement savings vehicles.
Randall Webb - TJSDD - Common Pitfalls and Deficiencies Found in Plan AuditsDowney Brand LLP
At the 2015 Savannah Fiduciary Seminar, Randall Webb of TJS Deemer Dana presented the most common deficiencies identified during plan audits and how plan sponsors should correct those deficiencies going forward.
HunterMaclean ERISA and employee benefits attorney Rebecca Sczepanski made this presentation at the 2015 Savannah Fiduciary Seminar. Her presentation covered a summary of the legal issues regarding fiduciary status, including how to identify ERISA and state law fiduciaries. She provided tips for avoiding or mitigating risks associated with defined plan fiduciary status as well as an update on major fiduciary litigation.
This document provides an overview and summary of preserving retirement assets through IRA rollovers. It discusses the options available when changing jobs, including taking a lump sum distribution, leaving funds in the previous employer's plan, or rolling funds over to a new employer's plan or a traditional IRA. It notes that taking a lump sum distribution can result in taxes and penalties that reduce the available retirement funds. The document then provides examples showing how much more money could be available in retirement by rolling funds over instead of taking a lump sum. It discusses the details and benefits of direct and indirect IRA rollovers.
The document introduces the M Financial Group and their "Super Roth" deferred compensation strategy. It summarizes that the strategy allows tax-free growth and tax-free withdrawals through a company-sponsored plan with life insurance funding. It provides hypothetical examples showing how the "Super Roth" strategy could provide higher total and spendable retirement benefits than traditional pension or personal investment strategies by diversifying accumulations and hedging against future tax increases.
This document provides an overview of annuities, including:
- Annuities are insurance contracts that allow individuals to save money on a tax-deferred basis and receive guaranteed lifetime income in retirement.
- Premiums are invested and earnings accumulate tax-deferred, while payouts in retirement are partially taxed as ordinary income.
- Annuities offer benefits like guaranteed lifetime withdrawals, death benefits for beneficiaries, and options to convert savings into fixed or variable lifetime income payments.
- Factors like investment performance, age, and payout options chosen determine the amount of annuity income received in retirement.
This document discusses defined benefit pension plans. It provides definitions and explanations of key terms related to DB plans, including funded status, accumulated benefit obligation, projected benefit obligation, plan surplus, total future liability, retired lives, and active lives. It also discusses factors that influence a DB plan's investment objectives and strategies, such as tax concerns, legal/regulatory issues, time horizon, plan features, and workforce characteristics. The document then provides an example of the primary objective, funding objective, investment objective, and return objective of a specific DB pension plan in Kenya.
Module 4 of the Canadian Small Business Course looks at the topic areas related to tax planning and strategies you can utilize to save taxes.
In this course module we review strategies such as paying family members through a business, paying your child's tuition through a corporation and issuing shares to family members.
Also reviewed are a few advanced tax planning strategies that will enable you to pay medical expenses through your business and set up a company pension plan.
This document discusses the pros and cons of qualified and non-qualified deferred compensation plans. It explains that non-qualified plans allow employers more flexibility in selecting participants and setting contribution amounts compared to qualified plans, but non-qualified plans require employers to defer tax deductions. A major con of non-qualified plans is complying with Section 409A, which introduces penalties for failing to follow specific rules. The document also notes that non-profits face additional challenges with non-qualified plans due to risks of forfeiture.
Pragmatic Steps to Managing Money Early in Your CareerPeggy Groppo
GW & Wade provides comprehensive financial services including retirement planning, investment management, tax planning, estate planning, and more. Their expert counselors create custom plans for each client based on their unique needs and goals. Services include income tax planning, cash flow analysis, charitable gifting strategies, education planning, and executive team services. Counselors help clients manage their investments and assets to stay on track with their financial plans over time.
This document provides an overview of personal income taxation in Malaysia. It discusses key concepts like chargeable income, taxable income, personal reliefs and deductions, rebates, tax rates, and tax payments. The objectives of tax planning are to maximize the amount kept by the individual and minimize taxes paid. Taxpayers are responsible for accurately reporting their income, maintaining records, and paying taxes owed by the deadline each year. Understanding taxation is important for effective personal financial planning and minimizing the taxes paid.
Charting A New Course. Life After Unemploymentjtarnofs
This document provides an overview and action plan for managing life after an employment transition. It discusses cash flow management, health insurance options, life and disability insurance needs, long-term care considerations, and retirement plan distribution options. The document emphasizes developing a strategy with professional guidance to evaluate opportunities and streamline next steps after a job change.
How to Reduce Plaintiff Attorneys' Income Taxes and Build Wealth Using Contin...Greg Maxwell
This presentation was created by Greg Maxwell, Esq., CFP® of Amicus Settlement Planners. If you have any questions about deferring legal fees, you may schedule a complimentary call with Greg via this link: bit.ly/book-a-call-with-greg-maxwell, or you can email Greg at Contact@AmicusPlanners.com.
The Aggregate income from all the heads of income is known as Gross Total Income.
In Computing the Total Taxable Income on an assessee, certain deductions under sections 80C to 80U are allowed from his Gross Total Income. It means , firstly, that the income of the assessee shall be calculated under 5 specific Heads of income and incomes from all heads are put together and then from this total, certain deductions are made and after making deductions whatever remains shall be the total income or total taxable income.
The document provides information about The Legend Group, which is an investment services provider offering retirement planning, education savings, insurance, and portfolio management solutions. It details the company's history of providing quality investment solutions for nearly 50 years. Clients work with financial professionals to develop customized plans for their specific goals.
1) The document discusses NAFA Pension Funds (NPF) and NAFA Islamic Pension Fund (NIPF) which allow individuals to save for retirement in a tax efficient manner.
2) Contributions to these funds are invested in underlying equity, debt, and money market sub-funds based on the participant's risk profile and can be withdrawn tax-free at retirement.
3) The funds offer benefits like tax credits on contributions, tax-free growth of investments, options to receive lump sums or annuities at retirement, and accident insurance for balances over Rs. 100,000.
An Individual Pension Plan (IPP) allows high-income professionals and business owners to make annual pension contributions far exceeding RRSP limits, providing significantly higher retirement benefits than an RRSP alone. Contributions are tax-deductible for the incorporated business and the funds grow tax-deferred. However, IPPs have higher administrative costs and rules compared to RRSPs, making them best for older self-employed individuals earning over $138,500 annually who need to boost retirement savings beyond what RRSPs allow. While not flexible as an RRSP, an IPP can create a larger guaranteed pension if set up correctly with an actuary and accountant.
Objectives & Agenda :
Issue by way of private placement of debentures provides a reliable source of finance to meet the long term funding needs of an enterprise. It can be issued by public and private companies. The webinar covers the statutory provisions under Companies Act, 2013 for issue of debentures on private placement basis, various procedures, compliance aspects involved and judicial precedents.
This chapter discusses gross income and exclusions. It defines gross income for tax purposes and explains when taxpayers recognize income. It discusses the various sources of income, including income from services, property, annuities, and other sources. It also covers the major exclusion provisions that allow taxpayers to exclude or defer certain types of income from gross income, such as municipal bond interest, home sale gains up to $250,000, education-related exclusions, and foreign earned income up to $97,600.
This document discusses tax rules related to different types of investments. It covers how interest, dividends, capital gains and losses are taxed. It also discusses tax-exempt sources of investment income like municipal bonds, life insurance, and education savings accounts. The document explains the distinction between portfolio and passive investments and limitations on deducting losses from passive investments.
An investment-linked takaful is a family takaful plan that combines investment and takaful cover. Your contributions provide death and disability benefits and are partially invested in Shariah-compliant funds of your choice. As a participant, you can choose how your contributions are allocated to protection versus investment. The takaful operator manages the investment fund and receives fees, while participants mutually help each other if claims are made. Investment-linked takaful offers flexibility to choose protection levels and investment funds and allows switching funds, partial withdrawals, and redemption of units. Participants must understand the investment risks and choose funds aligned with their risk tolerance.
IntroductionComment by Exploring Series This is listed as a Head.docxvrickens
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.
It is never too early to save for your retirement. For a start, you can estimate the amount that you need to have before you can retire comfortably using financial calculators found on sites such as CNN Money, Kiplinger, Motley Fool, and TIAA-CREF financial services. The good part is, there are many different types of retirement plans that you can participate, individually or with your employers. To help you save for retirement, there are many government-regulated and government-approved retirement accounts that you can contribute a certain amount to annually. Why should you enroll in a retirement plan NOWnow? Did you know that your retirement can last for 30 years or more? A common rule to follow is that a retiree will need up to 80% of his/her annual income today to retire comfortably. Unfortunately, the average benefit amount paid monthly by the Social Security Administration is only $1,177.
Below are many advantages why you should start saving NOWnow:
· Tax on employee and employer contributions is deferred until distributed.
· Investment gains in the plan are not taxed until distributed.
· Retirement assets can be carried from one employer to another.
· Contributions can be made easily through payroll deduction.
· Saver’s Credit is available.
· Flexible plan options are available.
· Better financial security at retirement.
Future Retirement Savings Value - Assuming 6% annual return Comment by Exploring Series: You need to insert a caption for this table and the next table.
Monthly Savings
5 years
15 years
20 years
$50
$3,506
$14,614
$23,218
$200
$14,024
$58,456
$92,870
$500
$35,059
$146,136
$232,176
Source: http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Benefits-of-Saving-Now
A contribution is defined as the amount that an employee and an employer can put into a retirement plan. There are, however, varying limits on how much we (including both employers and employees) can contribute to any of the retirement plan. Each plan has its own rules and criteria, and must specifically state that contributions or benefits cannot exceed certain limits. Employees can participate in contributions via salary reduction. Employers can match employees’ contributions or contribute outright a certain amount into the employees’ retirement account.
Traditional Individual Retirement Arrangements (IRAs) Comment by Exploring Series: Please change all headings formatted with Heading 3 to Heading 2 style.
There are two major kinds of IRAs – traditional and Roth. A traditional IRA is a way to save for retirement that gives you tax advantages. It allows you to make tax-deferred investments to provide financial security when you retire. Your traditional IRA contributions may be tax-deductible. The deduction may be limited if you or your spouse is covered by a retirement pla ...
Rollovers: the impact it can have on your retirementAndrew Leeman
While leaving your money in your former employer's plan may be an option, one way to gain more control of your assets is to consolidate your retirement funds into a single individual retirement account (IRA). Email me with any questions: aleeman@ft.newyorklife.com
HunterMaclean ERISA and employee benefits attorney Rebecca Sczepanski made this presentation at the 2015 Savannah Fiduciary Seminar. Her presentation covered a summary of the legal issues regarding fiduciary status, including how to identify ERISA and state law fiduciaries. She provided tips for avoiding or mitigating risks associated with defined plan fiduciary status as well as an update on major fiduciary litigation.
This document provides an overview and summary of preserving retirement assets through IRA rollovers. It discusses the options available when changing jobs, including taking a lump sum distribution, leaving funds in the previous employer's plan, or rolling funds over to a new employer's plan or a traditional IRA. It notes that taking a lump sum distribution can result in taxes and penalties that reduce the available retirement funds. The document then provides examples showing how much more money could be available in retirement by rolling funds over instead of taking a lump sum. It discusses the details and benefits of direct and indirect IRA rollovers.
The document introduces the M Financial Group and their "Super Roth" deferred compensation strategy. It summarizes that the strategy allows tax-free growth and tax-free withdrawals through a company-sponsored plan with life insurance funding. It provides hypothetical examples showing how the "Super Roth" strategy could provide higher total and spendable retirement benefits than traditional pension or personal investment strategies by diversifying accumulations and hedging against future tax increases.
This document provides an overview of annuities, including:
- Annuities are insurance contracts that allow individuals to save money on a tax-deferred basis and receive guaranteed lifetime income in retirement.
- Premiums are invested and earnings accumulate tax-deferred, while payouts in retirement are partially taxed as ordinary income.
- Annuities offer benefits like guaranteed lifetime withdrawals, death benefits for beneficiaries, and options to convert savings into fixed or variable lifetime income payments.
- Factors like investment performance, age, and payout options chosen determine the amount of annuity income received in retirement.
This document discusses defined benefit pension plans. It provides definitions and explanations of key terms related to DB plans, including funded status, accumulated benefit obligation, projected benefit obligation, plan surplus, total future liability, retired lives, and active lives. It also discusses factors that influence a DB plan's investment objectives and strategies, such as tax concerns, legal/regulatory issues, time horizon, plan features, and workforce characteristics. The document then provides an example of the primary objective, funding objective, investment objective, and return objective of a specific DB pension plan in Kenya.
Module 4 of the Canadian Small Business Course looks at the topic areas related to tax planning and strategies you can utilize to save taxes.
In this course module we review strategies such as paying family members through a business, paying your child's tuition through a corporation and issuing shares to family members.
Also reviewed are a few advanced tax planning strategies that will enable you to pay medical expenses through your business and set up a company pension plan.
This document discusses the pros and cons of qualified and non-qualified deferred compensation plans. It explains that non-qualified plans allow employers more flexibility in selecting participants and setting contribution amounts compared to qualified plans, but non-qualified plans require employers to defer tax deductions. A major con of non-qualified plans is complying with Section 409A, which introduces penalties for failing to follow specific rules. The document also notes that non-profits face additional challenges with non-qualified plans due to risks of forfeiture.
Pragmatic Steps to Managing Money Early in Your CareerPeggy Groppo
GW & Wade provides comprehensive financial services including retirement planning, investment management, tax planning, estate planning, and more. Their expert counselors create custom plans for each client based on their unique needs and goals. Services include income tax planning, cash flow analysis, charitable gifting strategies, education planning, and executive team services. Counselors help clients manage their investments and assets to stay on track with their financial plans over time.
This document provides an overview of personal income taxation in Malaysia. It discusses key concepts like chargeable income, taxable income, personal reliefs and deductions, rebates, tax rates, and tax payments. The objectives of tax planning are to maximize the amount kept by the individual and minimize taxes paid. Taxpayers are responsible for accurately reporting their income, maintaining records, and paying taxes owed by the deadline each year. Understanding taxation is important for effective personal financial planning and minimizing the taxes paid.
Charting A New Course. Life After Unemploymentjtarnofs
This document provides an overview and action plan for managing life after an employment transition. It discusses cash flow management, health insurance options, life and disability insurance needs, long-term care considerations, and retirement plan distribution options. The document emphasizes developing a strategy with professional guidance to evaluate opportunities and streamline next steps after a job change.
How to Reduce Plaintiff Attorneys' Income Taxes and Build Wealth Using Contin...Greg Maxwell
This presentation was created by Greg Maxwell, Esq., CFP® of Amicus Settlement Planners. If you have any questions about deferring legal fees, you may schedule a complimentary call with Greg via this link: bit.ly/book-a-call-with-greg-maxwell, or you can email Greg at Contact@AmicusPlanners.com.
The Aggregate income from all the heads of income is known as Gross Total Income.
In Computing the Total Taxable Income on an assessee, certain deductions under sections 80C to 80U are allowed from his Gross Total Income. It means , firstly, that the income of the assessee shall be calculated under 5 specific Heads of income and incomes from all heads are put together and then from this total, certain deductions are made and after making deductions whatever remains shall be the total income or total taxable income.
The document provides information about The Legend Group, which is an investment services provider offering retirement planning, education savings, insurance, and portfolio management solutions. It details the company's history of providing quality investment solutions for nearly 50 years. Clients work with financial professionals to develop customized plans for their specific goals.
1) The document discusses NAFA Pension Funds (NPF) and NAFA Islamic Pension Fund (NIPF) which allow individuals to save for retirement in a tax efficient manner.
2) Contributions to these funds are invested in underlying equity, debt, and money market sub-funds based on the participant's risk profile and can be withdrawn tax-free at retirement.
3) The funds offer benefits like tax credits on contributions, tax-free growth of investments, options to receive lump sums or annuities at retirement, and accident insurance for balances over Rs. 100,000.
An Individual Pension Plan (IPP) allows high-income professionals and business owners to make annual pension contributions far exceeding RRSP limits, providing significantly higher retirement benefits than an RRSP alone. Contributions are tax-deductible for the incorporated business and the funds grow tax-deferred. However, IPPs have higher administrative costs and rules compared to RRSPs, making them best for older self-employed individuals earning over $138,500 annually who need to boost retirement savings beyond what RRSPs allow. While not flexible as an RRSP, an IPP can create a larger guaranteed pension if set up correctly with an actuary and accountant.
Objectives & Agenda :
Issue by way of private placement of debentures provides a reliable source of finance to meet the long term funding needs of an enterprise. It can be issued by public and private companies. The webinar covers the statutory provisions under Companies Act, 2013 for issue of debentures on private placement basis, various procedures, compliance aspects involved and judicial precedents.
This chapter discusses gross income and exclusions. It defines gross income for tax purposes and explains when taxpayers recognize income. It discusses the various sources of income, including income from services, property, annuities, and other sources. It also covers the major exclusion provisions that allow taxpayers to exclude or defer certain types of income from gross income, such as municipal bond interest, home sale gains up to $250,000, education-related exclusions, and foreign earned income up to $97,600.
This document discusses tax rules related to different types of investments. It covers how interest, dividends, capital gains and losses are taxed. It also discusses tax-exempt sources of investment income like municipal bonds, life insurance, and education savings accounts. The document explains the distinction between portfolio and passive investments and limitations on deducting losses from passive investments.
An investment-linked takaful is a family takaful plan that combines investment and takaful cover. Your contributions provide death and disability benefits and are partially invested in Shariah-compliant funds of your choice. As a participant, you can choose how your contributions are allocated to protection versus investment. The takaful operator manages the investment fund and receives fees, while participants mutually help each other if claims are made. Investment-linked takaful offers flexibility to choose protection levels and investment funds and allows switching funds, partial withdrawals, and redemption of units. Participants must understand the investment risks and choose funds aligned with their risk tolerance.
IntroductionComment by Exploring Series This is listed as a Head.docxvrickens
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.
It is never too early to save for your retirement. For a start, you can estimate the amount that you need to have before you can retire comfortably using financial calculators found on sites such as CNN Money, Kiplinger, Motley Fool, and TIAA-CREF financial services. The good part is, there are many different types of retirement plans that you can participate, individually or with your employers. To help you save for retirement, there are many government-regulated and government-approved retirement accounts that you can contribute a certain amount to annually. Why should you enroll in a retirement plan NOWnow? Did you know that your retirement can last for 30 years or more? A common rule to follow is that a retiree will need up to 80% of his/her annual income today to retire comfortably. Unfortunately, the average benefit amount paid monthly by the Social Security Administration is only $1,177.
Below are many advantages why you should start saving NOWnow:
· Tax on employee and employer contributions is deferred until distributed.
· Investment gains in the plan are not taxed until distributed.
· Retirement assets can be carried from one employer to another.
· Contributions can be made easily through payroll deduction.
· Saver’s Credit is available.
· Flexible plan options are available.
· Better financial security at retirement.
Future Retirement Savings Value - Assuming 6% annual return Comment by Exploring Series: You need to insert a caption for this table and the next table.
Monthly Savings
5 years
15 years
20 years
$50
$3,506
$14,614
$23,218
$200
$14,024
$58,456
$92,870
$500
$35,059
$146,136
$232,176
Source: http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Benefits-of-Saving-Now
A contribution is defined as the amount that an employee and an employer can put into a retirement plan. There are, however, varying limits on how much we (including both employers and employees) can contribute to any of the retirement plan. Each plan has its own rules and criteria, and must specifically state that contributions or benefits cannot exceed certain limits. Employees can participate in contributions via salary reduction. Employers can match employees’ contributions or contribute outright a certain amount into the employees’ retirement account.
Traditional Individual Retirement Arrangements (IRAs) Comment by Exploring Series: Please change all headings formatted with Heading 3 to Heading 2 style.
There are two major kinds of IRAs – traditional and Roth. A traditional IRA is a way to save for retirement that gives you tax advantages. It allows you to make tax-deferred investments to provide financial security when you retire. Your traditional IRA contributions may be tax-deductible. The deduction may be limited if you or your spouse is covered by a retirement pla ...
Rollovers: the impact it can have on your retirementAndrew Leeman
While leaving your money in your former employer's plan may be an option, one way to gain more control of your assets is to consolidate your retirement funds into a single individual retirement account (IRA). Email me with any questions: aleeman@ft.newyorklife.com
The document discusses key milestones and considerations in retirement planning from ages 50 to over age 60. It recommends meeting with a financial professional prior to age 50 to review asset allocation and retirement strategy. At age 50, it suggests maximizing retirement contributions and catch-up contributions, and reviewing beneficiary forms and healthcare costs. At age 55, it addresses the impact of early retirement on Social Security benefits and pension payout options. At age 59.5, it discusses accessing retirement funds and protecting retirement income.
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.
This powerpoint goes into depth and explains FSAs, HRAs and HSAs, how they work together, who can participate, and what types of rules apply. It's a little boring, long, and somewhat detailed. However, you can use just portions of the slides if you'd like. The last 20 or so slides may be useful if an employer is offering high deductible health insurance plans, with an HSA - and already has an FSA in place This is a Continuing Education Course in California, under the Department of Insurance.
This document provides an overview of retirement planning issues and types of retirement plans. It discusses challenges in retirement planning such as higher health costs, longevity, balancing risk and return, and enjoying retirement. It then describes several types of individual retirement plans (IRAs, Roth IRAs, 401(k)s, 403(b)s, 457 plans, SIMPLE IRAs, SEP IRAs) and employer-sponsored plans (profit sharing, stock bonus, money purchase, combination, savings, and ESOP). The document provides details on contribution limits, eligibility, taxation, and withdrawals for each type of retirement plan.
Robert Tomaszewski provides advice on 401(k) options when changing jobs. Leaving an employer entitles you to your vested balance which includes contributions and earnings. It's best to roll over your 401(k) to an IRA or new employer's plan to avoid taxes and penalties. There are advantages to each option so you need to consider your individual needs and priorities when deciding where to roll over your funds.
Variable annuities and mutual funds are long-term investment vehicles designed for retirement. Variable annuities offer tax-deferred growth and death benefits while mutual funds allow for more flexibility but do not provide the same tax benefits. Both have associated fees that impact returns. Retirement planning should consider factors like longer lifespans, inflation, and rising healthcare costs to ensure adequate savings.
1) In the past, employers often encouraged departing employees to withdraw money from the company retirement plan, but now some employers are encouraging employees to leave it due to the costs of large accounts leaving.
2) When leaving a job, employees have the option to roll over their retirement savings into a traditional IRA or leave it in the employer plan. Leaving it in the employer plan allows avoiding penalties for early withdrawals starting at age 55, while an IRA offers more investment options.
3) Over a career, employees may accumulate multiple retirement accounts that could be consolidated into a single IRA for easier oversight, though employer plans also offer creditor protections like IRAs. There is no single best choice, so evaluating individual circumstances
Executive Compensation Strategies Bearing Capital Partnersjamielist
This document discusses executive compensation strategies for negotiating tax-efficient rewards. It provides an overview and assumptions, then covers topics like negotiated vs contingent compensation, quick planning solutions, entitlements, equity plans like stock options and SARs, US employment considerations, negotiating benefits, exit strategies, dealing with severance, and more. The overall message is that executives have opportunities to structure compensation to maximize wealth in a tax-efficient manner through various negotiated arrangements.
John Smith, a financial advisor, provides information about converting traditional IRAs to Roth IRAs. Key points include: everyone is now eligible to convert regardless of income; converted amounts can be reported over two years to reduce taxes; Roth IRAs offer tax-free growth and withdrawals in retirement. An example shows how converting $60,000 for a 28% taxpayer could provide tax-free growth over decades. Strategies discussed include converting small amounts over multiple years or using recharacterization if taxes are too high.
Retirement: What you need to know to retire successfullyMichael Goodfellow
The financial decisions you make as you ease into retirement will have implications that may be felt, quite literally, for the rest of your life. Retirement is a major life change. Clearly, a fulfilling retirement requires not only financial preparation, but also a clear vision of what kind of life you’d like to lead during retirement.
Michael Silver & Company CPAs recently published an article on retirement plans for businesses. Whether you have a small, independent business or a large company, we discuss the advantages and disadvantages for each plan available.
Michael Silver & Company CPAs has recently published an article on the benefits of retirement plans. Whether you have a small, independent business or a large company, we describe the advantages and disadvantages of each possible plan for each possible business.
This document discusses creating a retirement income and investment strategy. It emphasizes the importance of planning before investing and outlines 4 steps to constructing a personalized strategy: 1) Estimate retirement expenses, 2) Identify sources of retirement income, 3) Determine tolerance for income variance, and 4) Construct the strategy with a financial professional. A case study example is provided to illustrate how these steps are applied for a hypothetical retiree. The key is to have guaranteed income sources cover essential needs and to work with an advisor to develop a customized plan.
This document discusses various retirement planning strategies using your business. It begins by asking how much readers think retirement will cost and lists common estimates. It then outlines an agenda to cover accumulating money pre-tax and after-tax, different plan types, taxation of retirement income, and combining plans. The document discusses strategies like qualified plans, IRAs, annuities, and life insurance to save both pre-tax and after-tax. It emphasizes the benefits of tax-deferred growth and argues readers should diversify their strategies between taxable, pre-tax, tax-deferred, and tax-free approaches. The document suggests meeting to review the reader's goals, existing plans, and make recommendations to help achieve their retirement objectives.
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.
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.
Jim Sims provides information on converting or rolling over traditional IRAs to Roth IRAs. There are two ways to transfer funds: conversion or rollover. With conversion, funds stay in the account but it is renamed as a Roth IRA. With rollover, funds are transferred from traditional to Roth IRA. Qualified distributions from Roth IRAs are tax and penalty free. However, converting traditional IRA funds to Roth IRA requires paying taxes now on amounts converted.
This document provides information about tax planning and law updates. It discusses strategies for reducing 2012 income tax bills, such as estimating adjusted gross income, accelerating or deferring income and deductions. It also summarizes tax tips related to hiring family as employees, capital gains exclusions for home sales, and business use of residences. The document concludes with notes on upcoming tax law changes and the alternative minimum tax.
1. If you have savings in your employer’s 401(k) plan, 403(b) plan or other employer-sponsored retirement plan, you
may have several options when you become eligible for a distribution (withdrawal), including leaving the assets in
your employer’s plan, rolling to another employer’s retirement plan or rolling them into an Ameriprise®IRA. To help
you decide, we’ve identified several issues to discuss with your Ameriprise financial advisor as well as your tax
and legal advisors.
Leave it or roll it?
®
Evaluating options for your retirement plan assets
Employer’s plan Ameriprise IRA
Ownership
control
• A qualified plan trustee owns the assets, and plan participants
are bound by the plan’s constraints.
• Assets may be subject to blackout periods in which account
access is limited.
• You are the owner and have full access rights.
• Assets are not subject to blackout periods.
Investment
options
• Plan sponsor selects the investment options.
• May be employer-directed and/or self-directed.
• Access to annuities or other investments with guaranteed
retirement income options may be limited.
• A wide variety of investment options.
• Self-directed accounts.
• Access to a wide range of investments with guaranteed
retirement income options.1
Investment
services
• Plan may offer computer-generated advice, managed
portfolios or a target-date option to help you select between
investment options.
• Investment professionals, including your financial advisor,
are generally limited to providing you investment education.
• You can choose the level of advice and service you
desire by opening a brokerage or managed account.
• Your financial advisor will generally be able to provide
you with broader services and is able to integrate your
IRA with a financial plan to help you identify and track
progress against your goals for retirement.
Fees • Your investment expenses may be relatively low due to
institutional pricing.
• Typically, you will not pay fees for trading within your account,
mutual fund loads or commissions.
• An employer may charge reasonable fees to former workers
and their beneficiaries who remain in the plan, even if the
employer pays the fees for active workers.
• Your investment expenses, and the compensation
Ameriprise and your financial advisor receive, will vary
depending on the products and services you purchase
within your IRA.
• Depending on the type of account you open, you may
be charged a transaction fee when trading within your
account.
• An annual IRA custodial fee may apply but will be waived
if you qualify for Ameriprise Achiever Circle Elite status.2
Distribution
flexibility
• Some plans may limit distributions to a single lump sum or put a
limit on the number of distributions that can be taken in a year.
• You can decide the timing and frequency of the
distributions you will need to meet your retirement
income goals.
Beneficiary
planning
and options
• Some plans may limit your ability to name multiple or
contingent beneficiaries.
• Your spouse beneficiary can roll over plan assets to his or
her own IRA, inherited IRA or an employer’s plan.
• Your non-spouse beneficiary can roll over inherited plan
assets to an inherited IRA. This rollover generally must take
place by Dec. 31 of the year following your death in order for
IRA distribution rules to apply. Usually, your non-spouse
beneficiary may not leave money in the original plan and take
lifetime distributions.
• Check plan provisions for your available options.
• IRAs offer flexible beneficiary options, including multiple
and contingent beneficiary designations and certain
custom beneficiary designations.
• Your spouse beneficiary can roll over assets to his or her
own IRA, an inherited IRA or an employer’s plan.
• Your non-spouse beneficiary can move assets to an
inherited IRA and stretch out distributions throughout
his or her life expectancy.
• You may choose to restrict beneficiary access to the
IRA assets.