Most people work at a company that offers them a way to contribute to a retirement account, usually an IRA. However, there are more options available, according to a recent article from Forbes titled “10 Retirement Accounts You Should Know About.”
Few of us need less money in our retirement accounts. Most of us enjoy the tax benefits we get from retirement accounts. Americans, in general, do a terrible job of saving for retirement. Some say the IRA, Roth IRA and other similar accounts were created to give us an incentive to do a better job. The tax advantages of these accounts make it more attractive to sock away money every year. These accounts were also set up with deliberate penalties, so people wouldn’t raid their accounts every time they needed a few extra dollars.
If you are among those who work for companies that have a retirement savings plan match, make the most out of it. If you put in the annual percentage or amount your plan requires, your employer will match that contribution. Most workers walk away from this money. However, it’s free money!
Employees usually are offered a 401(k), 403(b) or 457 plan from their employer. The financial institution is already chosen, the money is automatically taken out of your paycheck and often you can only make decisions about what kind of funds you can select at certain times of the year. In 2018, you can contribute up to $18,500. If you’re 50+, you can make an additional $6,000 contribution, known as a catch-up contribution.
Self-employed? You need a retirement plan more than someone who works for a company. Self-employed people have many more options. If you need help, talk to your CPA. There may be some plans that are better suited or have more tax advantages than others.
For self-employed people, the basic choices are the solo 401(k) for a sole proprietor or someone working with their spouse. You can make contributions as both the employer and the employee. You could contribute as much as $55,000 in 2018 (or, if you are 50+, $61,000). Your total contributions are determined by your net business income.
Another choice for retirement savings for the self-employed is a SEP IRA, the Simplified Employee Pension. It’s easier to set up than a 401(k)and is typically used by people with self-employment income or small business owners. As the employer, you can contribute up to a quarter of your income, or $55,000, or whichever is less. There are no catch-up contributions for a SEP IRA.
Self-employed or working for a company, your retirement plan needs to include an estate plan. Your estate planning attorney will be able to help you with a will, power of attorney and healthcare directive. She will also be able to give you valuable insights, as to how your retirement plan and your estate plan can work together to minimize taxes and maximize the estate you leave behind.
Resource: Forbes July 23, 2018 “10 Retirement Accounts You Should Know About”
“從眾所周知的選項，如IRA和401（k），到比較少人知的選項，像現金餘額養老金計劃 (Cash Balance Pension Plans)或富人Roth，這些帳戶可以幫助您增加儲蓄。”
大多數人在一家公司工作，為他們提供的退休賬戶方式，通常是IRA。但是，根據福布斯最近發表的一篇文章，有更多的選擇 “10 Retirement Accounts You Should Know About.”( 你應該知道的10個退休賬戶)
自僱人士退休儲蓄的另一個選擇是SEP IRA，即簡化員工退休金 (Simplified Employee Pension)。設置比401（k）更容易，並且通常由自僱人士的收入或小企業主要使用。作為雇主，你可以提供高達四分之一的收入，或55,000美元，或比較哪個方法需要較少錢。SEP IRA沒有追加捐款。
參考: Forbes July 23, 2018 “10 Retirement Accounts You Should Know About”