As you begin to plan ahead for the future, there are different types of retirement accounts that you can consider investing in. Many of these accounts protect your assets and can provide you with significant tax benefits. You need to carefully consider which accounts are right for you so you can get on the path towards financial security during your golden years.
The Law Offices of James A. Miller, P.C. provides invaluable assistance on choosing retirement accounts for you to invest in. Whether you are just starting to invest or you have a significant amount of money to put aside for your retirement, we will help you to make smart choices on retirement savings. Give us a call today to learn more.
What are the Best Types of Retirement Accounts?
The best types of retirement accounts are retirement accounts which provide you with tax breaks and which provide you with protection of the assets that you put into those accounts. If you have a retirement account that has tax advantages, it is easier for you to save money because the government subsidizes your efforts by giving you tax breaks. If your account is provided with special protections under the law, this also means you won’t have to worry about losing the nest egg that you have tried to save.
A number of different kinds of retirement accounts come with tax breaks and special legal protections. Some of these are only available if your employer chooses to offer them. For example, you may be eligible to make contributions to a 401(K) or 403(B) account at work. 401(K)s are for workers of private companies and 403(B)s are available to pubic education organizations and to some non-profits. If your employer offers these accounts of related workplace retirement plans, contributing to these is often the best choice. You can contribute with pre-tax funds, have your employer put the money in directly from your paycheck, and often benefit from an employer making matching contributions up to a certain percentage.
If you do not have access to workplace retirement accounts, or if you want to invest and save more than you can put away in your work account, you should consider IRAs. IRAs, or Individual Retirement Arrangements, are often the best choice for those who want to make investments on their own for retirement. IRAs provide tax breaks and other advantages.
There are different kinds of IRAs. Self-employed individuals and business owners should consider Simple or SEP-IRAs, both of which will allow for larger amounts of deductible contributions to be made annually.
For most wage earners, a Roth IRA or traditional IRA is the best choice. A Roth-IRA is invested in with post-tax funds and money grows tax free. A traditional IRA is invested in with pre-tax money, which means you can deduct the amount you put into the account from your taxes and will not have to pay taxes on the income you invested.
IRAs and 401(Ks) are generally kept protected in case of bankruptcy and are beyond the reach of creditors in most situations. This means that not only do you get tax benefits from investing in these accounts, but you also don’t need to worry that the assets could be as vulnerable to loss as money in other kinds of investment accounts.
How to Choose Retirement Accounts That are Right for You
When you are considering what types of retirement accounts are right for you, you must understand the rules for contributing and the rules for taking money out.
For IRAs, there are annual contribution limits. There are also limits on how much money you can make and still take the tax deduction. As you reach retirement age, IRAs also impose rules on when and how much you must begin to take out of the accounts. Knowing the rules of different types of investment methods can help you to select which accounts are the right ones for you. An estate planning lawyer can also help you to select retirement accounts that will work to accomplish your goals.
Getting Help from an Estate Planning Lawyer with Retirement Accounts
The Law Offices of James A. Miller, P.C. can work with you to create a comprehensive plan for your retirement. We can assist you in determining how much to invest and which accounts will provide you with the most advantages for your investing strategy. To learn more, you can download our free estate planning worksheet. You can also give us a call at 866-370-3888 or contact us online to find out more about the different ways in which we can assist with your retirement planning efforts.
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