Different Types of Retirement Plans Explained

Different Types of

We all know we need to plan for our and the government sure knows that Social Security is not going to do the job. Here are links to the various retirement plans available to you


Individual Retirement Arrangement ( IRA )

Roth IRA


Here is a handy chart comparing traditional IRA to Roth IRA:


Features Traditional IRA Roth IRA
Who can contribute? You can contribute if you (or your spouse if filing jointly) have taxable compensationbut not after you are age 70½ or older. You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts (see 2014 and 2015limits).
Are my contributions deductible? You can deduct your contributions if you qualify. Your contributions aren’t deductible.
How much can I contribute?

The most you can contribute to all of your traditional and Roth IRAs is the smaller of:

·         $5,500 (for 2014 and 2015), or $6,500 if you’re age 50 or older by the end of the year; or

·         your taxable compensation for the year.

What is the deadline to make contributions? Your tax return filing deadline (not including extensions). For example, you have until April 15, 2015, to make your 2014 contribution.
When can I withdraw money? You can withdraw money anytime.
Do I have to take required minimum distributions? You must start takingdistributions by April 1 following the year in which you turn age 70½ and by December 31 of later years. Not required if you are the original owner.
Are my withdrawals and distributions taxable? Any deductible contributions and earnings you withdraw or that are distributed from your traditional IRA are taxable. Also, if you are under age 59 ½ you may have to pay an additional 10% tax for early withdrawals unless you qualify for an exception. None if it’s a qualified distribution (or a withdrawal that is a qualified distribution). Otherwise, part of the distribution or withdrawal may be taxable. If you are under age 59 ½, you may also have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.

Here are the rest of Retirement Plans Explained

401k Plans

401n Plans

Simple IRA Plans  (a Match plan for employees)

SEP Plans  (Simplified Employee Pension Plan)

SARSEP Plan  ( Salary Reduction Simplified Employee Pension Plan)

Payroll Deduction IRA’s

Profit Sharing Plans

Defined Benefit Plan ( DB )

Money Purchase Plan

ESOP (Employee Stock Ownership Plan)

457 Plan

409A Non Qualified Deferred Compensation Plan


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