Financial Services

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.

1. 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.
   
   
2. 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.
   
   
3. 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.
   
   
4. 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.
   
   
5. 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.
   
   
6. 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.