IRA, Roth IRA’s, 401K’s, 403B’s and 457’s

Don’t Make the 10 Biggest Mistakes 1000s Make Every Day

An IRA-Individual Retirement Account is a tax-deferred retirement account for an individual that allows that individuals to set aside money for retirement each year. The earnings on these accounts are tax-deferred until the individual begins taking withdrawals at age 59 ½ or older. If withdrawals are taken before the age of 59 ½ there is a 10% penalty.

Generally, almost anyone under the age of 70 ½ with taxable income can contribute to an IRA. For IRA contributions to be tax deductible, an individual may need to meet certain income guidelines and may not be able to contribute to an employment based retirement plan.

Roth IRA’s are plans where the taxes have already been paid on the money before it is put into the account. Why pay the taxes first? Qualified withdrawals from a Roth IRA are tax-free and growth in these accounts is tax-free.

401K’s, 403B’s and 457’s, are defined contribution plans offered by corporations to their employees. These plans allow employees to set aside a portion of their income before taxes have been taken out thereby deferring the taxes, reducing their taxable income and allowing the money to grow for retirement purposes. In some cases, the employers will match the employee’s contribution dollar for dollar.

If your employer is contributing to one of these plans, you are benefitting from the free money. When you retire, your former employer will stop contributing to your plan and at that time it could be of greater benefit for you to move your plan to one that gives you more control over which investments you have your money in.

IRS Publication 590 Individual Retirement Arrangements (IRAs) has many rules..

Call us, your IRA and 401K rollover experts for more information at (805) 984-4962 or email us at [email protected]

Retirement planning is a process

Establishing Goals and Risk Management
• Color of Money

Identifying sources of income
• Pensions, IRA’s, 401K’s, 403B’s and 457’s
• Real estate
• Investments
• Social Security

Estimating Expenses
• Living
• Medical
• Travel

Implementing a Savings Program
• Savings Accounts
• Money Market Accounts
• Investment Account
• Legacy Planning

Wealth Management
• Active Management
• Passive Management

Income Tax Planning
• Looking forward not backwards

Color of Money

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