Retirement Planning

Regarding your planning, this is one area you do not want to take lightly. From the minute we’ve been engaged on your behalf, we set to work to understand what your goals are for the money you’ve spent a lifetime building. Income that you cannot outlive? Have potential long term care benefits considered? Do you know how Required Minimum Distributions work and how much you will have to pay in taxes at age 70 ½ years with your qualified retirement funds?

ROTH IRA

TRADITIONAL IRA

You can contribute to a Roth IRA at any age.

You must be under age 70½ to contribute to a traditional IRA.

The amount you can contribute to a Roth IRA:

• Can’t exceed the amount of income you earned that year.
• Can’t exceed the IRS-imposed limits (see below).
• Could be reduced—or even eliminated—based on your modified adjusted gross income (MAGI).

Get details on Roth IRA income limits

The amount you can contribute to a traditional IRA:

• Can’t exceed the amount of income you earned that year.
• Can’t exceed the IRS-imposed limits (see below).

There are no additional restrictions based on your income.

Minors and nonworking spouses may be able to contribute, but check the special income rules first.

Minors and nonworking spouses may be able to contribute, but check the special income rules first.

For the 2015 tax year:

• If you’re under age 50, you can contribute up to $5,500.
• If you’re age 50 or older, you can contribute up to $6,500.

Limits could be lower based on your income.
Get details on IRA contribution limits & deadlines

For the 2016 tax year:

• If you’re under age 50, you can contribute up to $5,500.
• If you’re age 50 or older, you can contribute up to $6,500.

Limits could be lower based on your income.
Get details on IRA contribution limits & deadlines

You can’t deduct your Roth IRA contribution.

You may be able to deduct some or all of your traditional IRA contributions. The deductible amount could be reduced or eliminated if you or your spouse is already covered by a retirement plan at work.

There are no penalties on withdrawals of Roth IRA contributions. But there’s a 10% federal penalty tax on withdrawals of earnings.
Exceptions to the penalty tax

With a traditional IRA, there’s a 10% federal penalty tax on withdrawals of both contributions and earnings.
Exceptions to the penalty tax

Roth IRAs have no RMDs during your lifetime.

You must take your first RMD from your traditional IRA by April 1 of the year following the year you reach age 70½.
For each subsequent year, you’ll need to take your annual RMD by December 31.

Should I convert my IRA to a Roth?

Should you pay taxes now or later? Our CPA based associates can help you decide.

 The cost of cashing out of my employer plan

Compare the consequences of taking a cash distribution with the benefits of a direct rollover.
If you take your company retirement plan assets in a cash distribution when you leave or retire, you may lose a significant portion of your assets to federal taxes and penalties, as well as to state and local taxes. And, your savings will no longer continue to grow tax-deferred until your retirement.
Our advisors can help you see:

• How much of your company retirement plan assets could be consumed by taxes and penalties if you take a cash distribution.
• How these assets could continue to grow tax-deferred if you roll over your assets to an individual retirement account (IRA) or another qualified plan.