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How do I know if I am saving enough for retirement?
Click here.

How often should I evaluate my retirement plan?
A good rule of thumb is that reviews should be conducted annually to make sure you are meeting your goals. Still, if there’s a life-altering event such as a change in marital status or income level, then you shouldn’t wait to calculate the effects this will have on your retirement plans.


What is a Rollover IRA?
A Rollover IRA is a Traditional IRA established to receive any eligible Rollover distributions from other retirement accounts you may have. It is a way to consolidate all of your IRA’s without incurring any penalties, provided they are rolled directly into the Rollover IRA. Eligible distributions from the following retirement plans may be rolled over into a Rollover IRA:

  • Qualified retirement plan trust such as a pension plan,
  • profit sharing plan, 401(k) plan or stock bonus plan
  • Traditional IRA (does not include a Roth IRA or Coverdell Education Savings Account)
  • 403(a) annuity
  • 403(b) arrangement
  • Government 457(b) plan
  • SIMPLE IRAs have restrictions. Within the first two years from the date of your initial contribution, distributions from a SIMPLE IRA can only be rolled into another SIMPLE IRA. After the initial two-year period, distributions can be rolled over to a Rollover IRA.


Should I have a Traditional IRA?
If you’re looking for a smart way to save for your retirement, Traditional IRAs are easy and flexible, and one of the best vehicles for retirement planning. Funding is simple – you’re free to choose when and how much you want to contribute (IRS contribution limits apply). Your contributions may be tax deductible, and the money you earn in your IRA is always tax-deferred. That means you don’t pay taxes on the earnings in your IRA until retirement, when you may be in a lower tax bracket. Early withdrawal penalties may apply prior to age 59.5.


Am I eligible for a Traditional IRA?
Anyone under the age of 70½ for the entire year, who has taxable compensation or self-employment income (earned by sole proprietors and partners) for the year, may establish and fund a Traditional IRA.

What is a Roth IRA?
Roth IRAs are an excellent supplement to an individual’s retirement income, but unlike the Traditional IRA, where your contributions may be tax deductible, your Roth IRA contributions are never tax deductible. Making contributions to a Roth IRA is flexible, just like in a Traditional IRA, and you can choose when and how much you want to contribute (IRS contribution limits apply). Early withdrawal penalties may apply.


Who is eligible for a Roth IRA?
Anyone with taxable compensation or self-employment income (earned by sole proprietors and partners) for the year can open and fund a Roth IRA. But, there are certain rules for making qualified contributions to your Roth IRA that you should speak to a tax advisor about. For example, to be eligible to make a participant contribution, you must have a modified adjusted gross income (AGI) that is less than a certain amount, depending on your tax-filing status


What is a Simplified Employee Pension Plan (SEP)?
A SEP is a qualified retirement plan set up as an individual retirement account (IRA) in an employee’s name. You can establish a SEP for yourself if you own a small business, or you may participate as an employee if you work for a company that sponsors such a plan. The federal government outlines the requirements for participation, the maximum annual contribution limits, and the rules governing withdrawals. Contributions are tax deductible for a business and earnings are tax-deferred. Qualified individuals can contribute a fixed percentage of their earned net income (up to $30,000 maximum annually). Early penalties may apply.



Who is eligible for a Simplified Employee Pension (SEP)?
Many business owners, or self-employed individuals.

How much can I contribute into a SEP?
You can only contribute 25% of your annual income. Each year the IRS sets a limit on the total compensation amount that the employer can consider.


Are my SEP contributions tax deductible?
Generally, the contributions you make each year into your SEP IRA are tax deductible. If you are self-employed, you can deduct the contributions you make each year to your own SEP IRA.


For more information:

The information provided here is not intended to be a comprehensive discussion and is for general information only and not intended to provide specific tax, legal, financial, or accounting advice or recommendations.  This basic information regarding retirement accounts does not cover all possible tax consequences or IRA rules and regulations.  Please consult IRS Publications 525, 575, and 590 for more information in regards to IRS rules and regulations regarding retirement accounts.  Please consult your tax advisor about possible tax benefits and consequences for opening, contributing to or withdrawing from a retirement account.


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