Is retirement around the corner? The answer is "Yes" even if you think that you have plenty of time before you need to start saving. Early planning and saving can reap huge rewards when retirement comes, so starting your retirement planning now is essential. At Demont Insurance, we offer a number of retirement planning options, so please take the time to do a little research and then give us a call so that we can help you plan for the future. These are a few of the options you can choose from:
IRA
Saving money and not paying taxes - it's true!
With an IRA, you'll accumulate savings for retirement by:
- Getting tax-deductible contributions and the opportunity for tax-deferred growth
- Being eligible to participate - even if you're already in a retirement plan
- Having a wide variety of investment options
Roth IRA
Roth IRAs are completely free from federal income taxes, and any growth is compounded which makes a Roth IRA a powerful choice for retirement investment planning.
To take advantage of this tax-free opportunity after you retire, you can:
- Make after-tax contributions now
- Wait at least five years to take a distribution of earnings (some restrictions apply)
- Reach age 59 1/2 before you begin withdrawals
*Keep in mind, conversion to a Roth IRA requires you to pay the income tax deferred to date. Withdrawals before age 59 1/2, may be subject to income tax and a 10% tax penalty.
SIMPLE IRA
A SIMPLE IRA is an employer provided retirement plan. A SIMPLE IRA is similar to a 401(k) but offers simpler and less costly administration rules. An employer may either match the contributions of employees dollar for dollar up to 3% or the employer may contribute a flat 2% of compensation for each employee with at least $5,000 in compensation for the year regardless of the amount the employee contributes.
All of the above options are viable options when planning your retirement, so choose wisely and choose early so that you'll be able to enjoy your retirement.
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