Retirement plans help you to be financially stable in the long run. The importance of the retirement plans can be more understood in this current economic down slum. They can be very useful to cope with the present recession. You need to select your proper retirement plan as per your preferences and enjoy great financial returns even if you have retired from the job. There are various types of retirement plans that you can opt for. Some of the retirement plans include:-
Types of Retirement Plans
The 401 k plans rank among the well known retirement plans in the US. It is usually funded by the employee elective deferrals along with the employer matching which may be optional. The 401 k plans provide compounded increase on your money and make you financially secure in the post retirement period. Even after an employee leaves the job, his or her 401 k plan stays active. more on 410k ...
403b plans are applicable to the non profit business organizations and employers, public education organizations, government entities and other non profit organizations. Apart from these, health care institutions, universities, colleges, and others are included in the plans. In most cases, the 403b plans are funded by the optional employer matching and the employee elective deferrals. read more ...
The IRAs are the perfect choices if you are wishing to save money on a tax deferred basis. Those who are covered under the IRAs are allowed to make contributions and make the savings without being liable to local, state or federal taxes. The taxes are only applicable if you make the withdrawals through the IRA before attaining the age of 59. An advantage of the IRA plans is that you can reduce your contributions when the business is doing well. There are 2 types of IRA accounts: traditional IRA or Roth IRA. read more...
Social Security is a federally sponsored plan and provides a number of benefits such as pensions, disability benefits, retirement incomes, survivor benefits, health care benefits and so on. Social Security is a good way to cope up with the present recession. In case of the death of the main applicant, his or her spouse or the nominee is entitled to the survivor benefits. Those who are fully or partially disabled are also covered under the Social Security plans. read more ...
By investing in various types of annuities, you can bag great deals and make yourself secure and financially stable in the post retirement period. In case of immediate annuities, you will get the benefits right away. On the other hand, the payment is made on a deferred basis in case of deferred annuities. There are two kinds of Annuities : Fixed annuities and Variable Annuities . read more ...
The 457 plan is a type of retirement contribution plan in which both the government and the non government employers are covered. The employer in the 457 plan provides the plan while it is the employee who defers the contribution. It is done on a pre-tax basis. The benefits offered by the 457 plan are more or less similar to the 401 (K) or 403 (b) accounts. However, in case of the 457 plans, you need not pay any 10 % deduction or penalty if you withdraw before you reach the age of 59 ½. read more ...
The Keogh plan mostly caters to medical practices, family businesses, law partnerships and other organizations which have 10 or lesser employees who are highly paid. The Keogh plan is mostly funded by the employer and the employee contributions. For the defined contributions, the maximum limit is $46,000 while the defined benefit amount is $175,000. read more ...
Self Employed Retirement Plan
Self employed retirement plan help you get great deals out of your investments and enjoy financial stability even after you have retired from the job. They are lucrative, easy and hassle free source of getting money after you retire from the job. Get any one of the self employed retirement plans now and enjoy the benefits in the future years.
There are various types of self employed plans that are available. In order to get the right plan that is ideal, you need to have an idea of the various features and benefits of the plans. Different plans have different benefits and you need to choose the right one that will help you financially.
Some of the well known self employed retirement plans are:
Simple IRA: They rank among the major self employed plans in the US. By being enrolled into the plan, you can enjoy a compounded increase on your savings and also get various types of tax benefits. Apart from self employed people, partnership firms can as well opt for the SIMPLE IRA plan. The plan is made on the basis of the pretax salary reduction. The deductions that are made are applicable to Medicare, Social Security and other related benefits. Compared to the other plans, the cost of administration is also lower.
Keogh Plans: Ranking among the well known self employed retirement plans, the Keogh plan is ideal for self employed people such as medical practices, law partnerships, and family businesses and so on. It is also known as HR10 plans. The main objective of the plan is to provide the aged with extra funds and make them financially stable. Usually, the plan is applicable for organizations which have 10 or less employees who are well paid. It is mostly an employer sponsored plan and is made according to the employee contributions.
In addition to these, there are some other self employed retirement plans that you can opt for. They are easy to make and provide you with good financial benefits even after retirement. Some of the well known retirement plans consist of Solo 401k plans, Roth IRA plans, Spousal Deductible IRA plans, and Simplified employee pensions plans and so on. You can also enjoy tax exemptions by being enrolled in these plans.
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