HBA Financial Advisors
Retirement- The idea of retiring is quickly eluding a majority of our population. Not only is the retirement age becoming older, it is also becoming more expensive. Here are a few retirement tools to turn your dream of retirement into a reality.
IRA- Individual Retirement Accounts are investment tools that allow a person to set aside a certain amount of taxable income each year towards retirement while deferring taxes upon withdrawal.
Traditional IRA - Traditional Individual Retirement Accounts allow an individual to contribute one hundred percent of compensation such as self-employment income for sole proprietors and partners up to a specified maximum dollar. Contributions to Traditional IRAs may be tax deductible depending on the taxpayer's tax status.
ROTH IRA - These are modified Individual Retirement Accounts they allow a person to contribute after tax income to their account maintaining a tax free status upon withdrawal.
Employer Sponsored Plans- A benefit offered by an employer to an employee that allows them to save for retirement.
SEP- The SEP is a great investment vehicle for self employed individuals. It allows self employed individuals to save for retirement and lower their taxable income at the same time. Saving taxes and saving for retirement is a great combination!
Individual 401k- The individual 401k allows self employed individuals to save for retirement. This investment vehicle allows an individual to defer more income than the Sep.
Simple IRA- The Simple IRA is an investment vehicle that allows employers with up to 100 employees to have a retirement plan for themselves and their employees. The Simple IRA is also cheaper and easier to set up than a 401k retirement plan.
Disclaimer: HBA is not a law firm or accounting practice and is not giving legal or tax advice; we recommend that you seek the advice of your attorney or CPA for these matters.
