Prepare for Retirement in Selma
If you have a goal, you can structure your investments and savings accordingly for optimal outcomes, which can include retiring comfortably. For example, your options include:
An IRA is a personal retirement savings account that allows anyone with taxable income to save tax-free. You can set it up with any independent financial institution, such as a brokerage agency or a bank. You are the sole owner of this account. You can choose an IRA even if you have an employer-sponsored retirement plan. The annual contribution limit to an IRA account in 2023 is $6500, which is slightly higher than the limit in 2022. If you are over 50, you can contribute an additional $1000. People of any age can open IRA accounts; they only need taxable income to fund it.
However, if you are not saving tax-free income in IRA, you may have to pay taxes while withdrawing the money.
Both 401(k) & 403(b) are employer-sponsored retirement plans. In these plans, an employee contributes to their retirement savings while the employer matches the contribution. These are tax-deferred savings. Employees of private organizations are eligible for 401(k), whereas 403(b) is for non-profit or government employees. 403(b) rollovers allow you a tax exemption if your employment status changes.
At Soutas Financial & Insurance Solutions, we can help you with retirement income strategies as well as wealth accumulation strategies to get you exactly where you want to be in life financially.
Are you planning for a proper retirement strategy? Talk to us for expert insight and experienced advice. We offer Selma residents financial planning crafted to suit their individual retirement.
