About Retirement

Retirement Accounts

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Dealing with your 401K, IRA,  403B, and Roth IRA can be confusing. Click to learn more.

Social Security

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When to collect?

How to check my account?

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Retirement Accounts

401K

Your employer most frequently offers a 401K as a way for you to save for retirement with money from your paycheck.  The amount you put into your 401K is not taxed until you make withdrawals in retirement.  Your employer may match, or contribute to your account according to their rules.  Contact your HR department at work to get these rules. You want to add enough to your account to get the entire employer match; it's free money for retirement! The next step to maximizing the money in your account is to balance potential investment gains with minimizing fees for your investments within your 401K. The investments offered to you will vary depending on what your employer agreed to with the investment company. You need to look over the mutual fund offerings and do some research to make selections that are right for you. To learn how to research mutual funds offered within your 401K click here.


401K's have rules and maximum contribution limits which are fixed by the  IRS annually. For 2018 your maximum contribution is $18,500 except if you are over 50 by year end you can contribute up to $24,500.

403b

The primary difference between a 401K and a 403b is that a 403b is a retirement investment account used by nonprofit companies, religious groups, school districts, and governmental organizations. The law allows these organizations to be exempt from specific administrative processes that apply to the 401k plans. So the administrative costs for a 403b are lower than for a 401K. 


Your employer most frequently offers a 403b as a way for you to save for retirement with money from your paycheck.  The amount you put into your 401K and profits made in investments are not taxed until you make withdrawals in retirement.  Your employer may match, or contribute to your account according to their rules.  Contact your HR department at work to get these rules. You want to add enough to your account to get the entire employer match; it's free money for retirement! The next step to maximizing the money in your account is to balance potential investment gains with minimizing fees for your investments within your 403b. The investments offered to you will vary depending on what your employer agreed to with the investment company. You need to look over the mutual fund offerings and do some research to make selections that are right for you. To learn how to research mutual funds offered within your 403b click here.

403b's have rules which are set by the IRS. The IRS sets contribution limits annually. For 2018 the maximum amount you can put in is $18,500. The exception is that if you are over 50 by the end of the year, you can contribute up to $24,500.

Social Security

Social Security Is a vital link in your retirement net, for many.  If you have ever contributed to social security, you have an account. You can check your account for estimated amounts you will be paid monthly upon retirement.  You can also check each year that your gross annual pay was entered into the system correctly by your employer. IRS has for your gross yearly salary is correct, so you get all the credit you deserve when you retire. Please bookmark us and then go to the secure Social Security Administration page here and set up your private account. See you soon.

IRA

Another retirement account is an IRA which you set up at a bank or with an investment firm. You cannot keep retirement funds in your IRA account forever. You have to start taking withdrawals from your IRA, SIMPLE IRA or SEP IRA when you reach age 70½. You need to look over the mutual fund offerings and do some research to make selections that are right for you. To learn how to research mutual funds, and to improve your return, in your IRA click here. 

Roth IRA

A Roth IRA is a investment retirement  account you set up with your financial institution. The contributions, or money you put in are taxed.  Your contributions (money you put in) and profits made within the account you withdrawal in retirement are tax free at the age of 59.5.  However, you may withdraw your contributions to a Roth IRA penalty free at any time for any reason, but you'll be penalized if you withdrawing any investment earnings before age 59 ½ or less that 5 years after you began contributing to the account, unless it's for a qualifying reason.  

You can escape the 10% IRS tax penalty, if you're withdrawing the money for these reasons.

These reasons are:

Paying college expenses for your spouse, you, your children or grandchildren.

Paying medical expenses, if you're under age 65,  greater than 10% of your AGI (adjusted gross income on your tax return).

You are paying for a first-time home purchase (up to $10,000).

Sudden disability expenses. 


The annual limit for how much you can put into your Roth IRA for 2018 is $5,500, or $6,500 if you're age 50 or older. Your Roth IRA contributions may also be limited based on your filing status and income. To see the details published by the IRS click here, but you are generally safe contributing the maximum if you made less the $189,000 gross income and Did Not live with your spouse if you are married filing separately. 


You need to look over the mutual fund or stock offerings in your account and do some research to make selections that are right for you. Whether you have mutual funds, stocks, or both available depends on how you set this account up with your bank. To learn how to research mutual funds or stocks offered within your IRA click stocks or mutual funds. 

Insurance

Term life insurance it the least costly way to cover expenses and help your loved ones after you are gone.  Whole life is much more expensive.

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