Retirement Planning

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Retirement Planning

Whether it is calculating the most tax efficient way to withdraw funds from your 401K, IRA, Roth IRA, Benefit plan, or budgeting to meet your retirement goals, APA can help you develop a personal plan for your needs.  Additionally, we will review your individual Social Security account and work with you to determine the best time to begin taking your social security benefits.
Some of the most popular retirement plans to discuss are:

  • IRA’s – Traditional, Roth and spousal
  • SIMPLE Plans – this plan is available to self-employed individuals and to businesses that have no other plan and 100 or fewer employees. SIMPLE’s permit employees to make pre-tax contributions to a SIMPLE IRA or a SIMPLE 401(k). Employers are required to make a contribution for each eligible employee. The main attraction to SIMPLE’s is that they are easier to administer than traditional company retirement plans.
  • SEP Plans (also known as SEP-IRA) – this plan lets you establish individual retirement accounts for yourself and your eligible employees. You can also have a SEP if you are self-employed. Setting up a SEP can be as simple as completing a short, written agreement. Other than the annual disclosure statements to employees, there are no filing requirements. SEP’s can be funded only by employer contributions, but SEP’s offer flexibility to employers because they can decide each year how much to contribute. Unlike other plans, SEP’s can be established up until the extended due date of your company’s tax return.
  • Keogh Plans – only sole proprietorships and partnerships can set up a Keogh plan. Contributions provide tax deductions for the business and tax-deferred earnings for the employees. There are different types of Keoghs, some requiring annual contributions and some allowing contribution flexibility based on a company’s profitability.
  • 401K Plans – under this plan, workers can elect to have their employer contribute part of their salary to the plan. Though these plan contributions are subject to social security tax, they are not subject to income tax until money is withdrawn from the account. A 401(k) can permit employer contributions, such as matching or profit-sharing contributions. 401(k) plans can be costly to administer, and they are subject to complex tax and reporting requirements.

In addition to the above, please see the area of our website titled INFORMATION CENTER.  The Information Center has valuable retirement material concerning your taxes, your business and your finances.

This brief overview by no means includes all the details you need in order to make informed decisions about retirement plans.  Not every plan is available to everyone.  Contribution limits vary, depending on the plan, your income, and your age.  Withdrawals may be required at a certain age for some plans, and they may be taxed or tax-free depending on the rules governing the particular plan.  A tax credit may be available to some businesses for setting up a plan and to some individuals for contributing to a plan.

The rules for retirement plans are among the most complex in the tax law.  Before you make decisions in this area, call us.  We are here to help.