FOR YOUR RETIREMENT
IRA'S AND TAX DEFERRED
ANNUITIES - 3.00% CURRENT
Professionals or Small Business?
Click for SEP and SIMPLE IRA Plans
||Glacial Lake, Mt.
Turkul, Carpathian mountains, Ukraine
We are all living longer: Fabulous. But
increased longevity can pose a quandary for those who either did not save for
retirement or are worried about outliving their money (i.e. not having saved
enough). Not to worry: One way to save for retirement and to ensure that your
money lasts as long as you do is to invest in an
annuity. What is more, wrapping that annuity into an
(traditional or Roth) will further enhance the already
generous tax treatment, which the Federal and State authorities afford to
Unprecedented numbers of Americans are
entering the homestretch toward retirement. Born in 1946, the first of
approximately 75 million "Baby Boomers" turned 60 last year. Even the youngest
of the generation, who are "40-something", are thinking about retirement.
Although today"s boomers have accumulated more wealth than previous generations,
they still wonder: Have we saved enough? How much is enough? How do I set a
budget for my years as a "pensioner".
Other reasons for concern stem from
alarming issues regarding Social Security retirement pensions. Even as the
government began imposing ever-increasing tax burdens upon such benefits, it
also increased not only the full retirement age for many Baby Boomers and their
descendants, but also the maximum income level from which FICA taxes are being
extracted. And still there is no guarantee that Social Security will protect
future generations. It is reasonably certain, however, that significant
limitations will continue.
There can be but little doubt,
therefore, that Americans must increasingly rely upon personal retirement
savings and budgeting plans. There is no choice but to use those tax-deferred
and tax-free retirement savings tools that the government has provided to the
Funding the dream: How much is
Plan for Retirement.
An individual Retirement Account (IRA)
is one of the best and easiest ways to save for the future. IRA"s have been
greatly enhanced by new legislation that brought significant changes to
Traditional and Roth IRA"s.
Depending on the type of IRA one
chooses, the interest earned may either be tax-deferred or tax free and the
contributions made may even be tax-deductible (Consult your tax advisor to
determine your opportunities). The effective growth rate (up to 4.61%) of
a 3.00% tax-deferred or tax-free IRA or annuity, as offered by Providence,
guarantees a rapid accumulation and compounding of savings. The absence of any
loads (administrative fees or charges) makes sure that every dollar invested
with Providence works for the client.
A traditional IRA allows an
investor to deduct all or part of his IRA pension contribution directly from
taxable income. No taxes need to be paid on the interest earned on an IRA, until
the client withdraws funds. Penalties may be imposed for early withdrawals
(before age 59.5); however, tuition costs, long-term disabilities, a first time
home purchase, and/or catastrophic medical expenses qualify depositors for early
uses of funds.
Enhancements made to the
Traditional IRA also include increased contribution limits and an increase in
the Adjusted Gross Income levels for active participants of employer sponsored
Eligible taxpayers can make
nondeductible contributions to a Roth IRA which features tax-free withdrawals.
Contribution limits for IRA"s in this tax years are $4,000, or $5,000 for
participants age 50 and older. Penalty-free early withdrawals are available for
tuition and qualified first-time home purchases.
Leaving Your Job? Providence arranges
and accepts 401k Rollovers.
For those who are leaving or
retiring from a job, choosing what to do with an IRA or 401 (k) retirement plan
payout is critical. Current IRS laws make the choices more complicated and
critical: Upon leaving a job with a 401k or similar retirement savings plan, a
20% federal tax withholding requirement (or even a penalty) is levied against
any payout not transferred into an IRA or a new employer"s pension plan.
Happily, Providence can arrange for a tax and penalty free rollover of its
Annuities Offer Supplemental
Tax-deferred Savings Opportunities
who do not qualify for an IRA, or who wish to enhance retirement savings
with additional monies, should open a Providence Annuity. This will save
on taxes and still earn our high current yield of 3.00%. Annuity plans supplements
IRA and other pension savings. The federally approved tax deferred features
of annuities afford major investment advantage for the young and for retired
How do I
learn more about Annuities and IRAs ?
on the appropriate "Quick Links" to the left or above. Also, review the articles
listed below by clicking on the titles:
PROFESSIONALS AND SMALL BUSINESS OWNERS'
SEP IRA PENSION PLANS
SMALL BUSINESSES AND PROFESSIONALS SIMPLE IRA
RETIREMENT PLANNING: AVOID "SUPERANNUATION"
THE LEGACY (STRETCH) IRA ANNUITY
("S-ANNUITY"): DEFER INCOME TAXES AND CONFER BENEFITS OVER THE COURSE OF SEVERAL
and ROTH IRA