The Retirement Advantage takes great pride in providing a variety of retirement solutions and investment options designed for companies and investors. Upon completing the form below, one of our representatives will contact you to discuss the options that will work best for you.
When an employee participates in the plan, they get to determine the exact amount of money contributed automatically from each pay period. Individuals can typically invest up to $18,000 per year. This amount increases to $24,000 for individuals age 50 or older.
Traditional contributions, excluding Roth contributions, are completed before tax deductions. This means less income tax is paid when the investment is made. These taxes will be paid when the money is withdrawn. This includes taxes on any interest earned.
Some plans may allow for Roth contributions. These contributions are taxed prior to the deduction, which means it won’t be taxed again on withdrawal. These earnings are penalty- and tax-free in some situations.*
*Any withdrawals from Roth accounts are penalty- and tax-free for any accounts created at least five years prior to the withdrawal. The participant must also be 59-½ years old, deceased or disabled. Any non-qualified distributions will result in taxable earnings that are also subject to a 10% early withdrawal penalty.
* Withdrawals from Roth accounts are tax- and penalty-free if the account was established at least 5 years before, and if the participant is at least 59½ years old, disabled or deceased. For non-qualified distributions, earnings are taxable and may be subject to a 10% early withdrawal penalty.
There are many investment options available with a 401k retirement plan, including mutual funds. These choices are selected by the employer, often with the help of a third party administrator for 401k plans. Those who participate in the plan can make decisions within the options set by the employer.
As a way to encourage employees to invest their own funds, many companies choose to match those contributions. Some employers choose to match dollar for dollar, while others will contribute only a percentage of the contributions employees make. Employers sometimes also choose to make discretionary contributions.
Employees always maintain ownership over all of the funds drawn directly from their pay. However, employer contributions may require individuals to work for a period of time before becoming fully vested in these funds.
A 401k retirement plan requires individuals to be at least 59 ½ years of age or have a qualified disability to access the funds without penalty. However, some plans may provide the opportunity to withdraw money prior to this time.
When an employee is fired or quits, there are a number of options for large and small business retirement plans:
In order to learn more about available options, fill out the following form and we will contact you to talk about your retirement.