2015 – Retirement Saving

November 20th, 2015

ARCHIVE NOTICE: This articles was posted in November 2015.
The information is not necessarily relevant to the current tax year.

Now is a good time to review and evaluate your retirement savings. The tax code provides significant incentives for individuals to make contributions to retirement savings and plans, including traditional and Roth IRA’s, as well as to employer sponsored qualified and non-qualified plans, including qualified 401(k) plans. A saver’s credit also may be available for investors in certain tax brackets, which further enhances overall savings. The tax law is designed to make it easier for individuals to save for retirement even in these difficult economic times.

If you are self-employed, tax planning for retirement can include deductible contributions to a Keogh plan, traditional or Roth IRA, SEP plan, SIMPLE plan or a one-person 401(k) plan. You may wish to consider implementing one of these plans for yourself and/or your employees to benefit from a current tax year deduction and accumulate tax-deferred retirement savings.

Tax incentives can include deductibility of contributions, tax deferral on growth of assets in the plan, and potential distribution free of tax, varying on the investment vehicle chosen. The choice of investment that may be best for you depends upon your individual tax and overall financial situation. Regardless of the type of contribution, any contribution should be made as early in the year as possible. If this approach is followed consistently over the years, the benefits will be far greater than contributions made at the last minute.

Please call our office to discuss your retirement savings situation and strategy. The rules applicable to the types of investment vary and can be complex. We will be happy to help you maximize your tax benefit and overall savings.

You are here: Home » Blog » Tax Planning » 2015 – Retirement Saving