Both a traditional IRA and a Roth IRA are great options to consider as both offer tax-free growth, however both have pros and cons. Roth IRAs are a good option for those would prefer tax-free withdrawals later, while traditional IRAs will allow for tax benefits immediately. The goal is to pick the right one and that is exactly why we are here.
A simplified employee pension IRA (SEP IRA) is one that is established by an employer for the use of their employees and even themselves. Rather than the employees making the contributions to the IRA, it will actually be the employer.
A Savings Incentive Match Plan for Employees, or SIMPLE IRA, is meant for small businesses with 100 or fewer employees. SIMPLE IRA’s are fairly easy to set up and the paperwork is minimal.
This type of plan is very commonly used by employers and allows employees to contribute. There are two different types of 401(k) plans: traditional and Roth. Both provide great benefits for employees, but understanding the different ways they are taxed can make one more appealing over the other. We at Legacy Financial Partners will assist with making the best decision possible.
403(b) plans are very similar to 401(k) plans, but these are specifically meant for employees who work at public schools or organizations that are tax exempt. In contrast to a 401(k), those with a 403(b) plan have the potential to make additional catch-up contributions after 15 years.
Money purchasing plans and profit-sharing plans are very similar retirement plans, but a money purchase plan has fixed contribution amounts. Profit-sharing, on the other hand, allows variable amounts. What is advantageous about these two plans is that they can be used in conjunction with each other.
We know that financial decisions can often be very stressful. You want to choose the best option so that you can experience the maximum benefits when it is eventually time to retire. At Legacy Financial Partners, we want that for you too. Please contact us today to schedule a meeting.
