Financial Services Information
There are six main types of retirement plans that you can contribute to. The differences are important and you should find the right plan for your situation.
- Individual retirement account (IRA): Allows you to contribute money, which is invested tax-deferred. Your gains can grow quicker since they are not taxed until you withdraw funds at retirement.
- Roth IRA: Differs from a regular IRA in one main way… contributions are made after tax. Funds contributed within a Roth IRA are not taxed again.
- 401(k): An employer-sponsored retirement plan in which you can contribute a pre-tax portion of each paycheck. Contributing to a 401(k) lowers the amount of income you pay taxes on. Additionally, many employers offer matching programs as an employee benefit.
- Roth 401(k): Combines features of Roth IRA and 401(k). It is offered through employers, but contributions come from your after-tax salary. Like a Roth IRA, funds in the account are not taxed again.
- Simple IRA: Built like a 401(k) and often offered by small businesses. Contributions come from pre-tax paychecks and money grows tax-deferred until retirement.
- SEP IRA: Works well for self-employed individuals, who can contribute part of their paychecks. Contributions can be deducted from income taxes. Plus, annual contribution limits are higher than many other retirement plans.
Let's start with a discussion. Call Jonathan Eleser today at 337-326-0229.