401K and Retirement Planning

401K and Retirement Planning IRA Basics: Anybody younger than 70 with earned income may contribute to a traditional IRA, which may be tax deductible depending on your modified adjusted gross income and whether you or your spouse participate in a qualified retirement plan through your employer. The earnings in your IRA are always tax-deferred - meaning you won't pay taxes on the earnings until you receive a disbursement. You must start taking distribution of a traditional IRA at age 70. Read More... 401k Tips: The 401(k) plan is a type of defined contribution pension plan available in the United States. Named after a section of the 1978 Internal Revenue Code, it is a device to provide tax advantages on money set aside for retirement. Other types of defined contribution plans include 403(b) plans covering workers in non-profit entities and the 457 plan that covers employees of state and local governments. Read More... Retirement Accounts: If you are considering setting up an IRA, there are a number of options open to you, each with varying risks, management involvement and costs. Financial institutions – banks, brokerage firms, credit unions, insurance companies and mutual funds are all competing for your business. Read More...