How do I save for my retirement years?
Traditional employer-sponsored pension plans were and often continue
to be based upon defined contributions or defined benefits that
are not nearly sufficient for a retired couple to survive retirement
without making drastic adjustments to its living standard. Nor is social
security (even if it survives as a concept for the future) designed to
award people the approximately 75% to 85% of annual pre-retirement income
that is necessary for the task. What must we do to survive
Americans must increasingly rely upon personal retirement savings, investment 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 public: IRAs (Roth and traditional) 401(k) plans, 403(b) tax-sheltered annuities available to employees of charitable institutions, 457 retirement annuities available to state and municipal employees; and SEP and SIMPLE plans available to small businesses.
Providence IRA annuities (always striving to pay a favorable
interest rate with a 3.00% minimum guaranteed for life) can
be used to fund any of these personal pension plans (with the exception
of employer sponsored plans that allow for no discretion in fund selection).
Providence IRA annuities are also available for a safe professional
rollover from other qualified plans. Your Providence professional can
make the appropriate arrangements.
Once the investor reaches the maximum allowable contribution
limit in any given qualified pension plan, he should turn to
personal annuities (such as Providence policies) to supplement retirement
savings. Annuities afford full tax-deferral and taxation only of interest
(not principal) at the time of any withdrawal.
Plan for Retirement
An individual Retirement Account (IRA) is one of the best and easiest
ways to save for the future. Legislation has greatly enhanced the utility
of the traditional and the Roth IRA. For example, aggregate IRA contribution
limits have been increasing over the years, from $4,000 for the year 2007
to $5,500 for the year 2013. As in the past, persons age 50 and over can
make annual $1,000 extra contributions. These maximum contribution limits.
Notably also, income earning spouses may contribute in identical
amounts to spousal IRAs for their spouses working inside the
home. Thus, it is imperative that the family contribute into spousal IRAs
just as much and as often as they contribute to wage-earner IRAs.
Couples that have no employer sponsored retirement plans between
them have no restrictions on their rights to make annual contributions
to the maximum limits discussed above.
The Adjusted Gross Income levels for active participants of employer
sponsored retirement plans and their spouses, on the other hand,
have increased significantly. Beginning in 2013 unmarried individuals
participating in employer plans may make full tax-deductible contributions,
if they earn less than $59,000 (Note: deduction is prorated for income
levels between $59,000 and $69,000). The AGI limit for married spouses
is $95,000 with prorated limitation amounts to $115,000.
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 of a Providence tax-deferred or tax-free
IRA annuity is far greater, therefore than the stated rate of interest.
annuities and IRA plans guarantee 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.
Traditional IRA Plans
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.
Roth IRA Plans
Eligible taxpayers can make nondeductible contributions to a Roth IRA which
features completely tax-free qualified withdrawals. Penalty-free early withdrawals
are available for tuition and qualified first-time home purchasers. Unlike
the case with Traditional IRAs, an investor can make contributions beyond
the time of his age 70.5. Nor must he make forced withdrawals from Roth IRAs.
Wage-earners can make non-deductible Roth IRA contributions, so long as their
earnings, combined with spousal earnings do not exceed $159,000 ($101,000 for
single persons), even if there is participation in an employer sponsored pension
Leaving Your Job? Providence arranges and accepts 401k, 403(b), 457 and
other qualified pension plan Rollovers.
For those who are leaving or retiring from a job, choosing what to do with a
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 pension plan. Happily,
Providence can arrange for a tax and penalty free rollover of its clients monies.
Annuities Offer Supplemental Tax-deferred Savings Opportunities
Those 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 ongoing favorable interest rate. Annuity plans supplement
IRA and other pension savings. The federally approved tax deferred features
of annuities afford major investment advantage for the young and for retired
pensioners. There are no limitations on a mounts that one can contribute into
Need to diversify your pension savings away from stocks and stock mutual
funds? Call Providence.
The extreme volatility and uncertainty of domestic and international stock markets
have forced many to seek out interest-based guaranteed income opportunities.
Providence Annuities and IRA annuities are exactly what investors must consider
to diversify their portfolios. Whether your pension fund is invested in IRAs
or personal annuities, Providence can readily arrange for tax and penalty-free
rollovers and transfers from those funds into its funds.
How do I learn more about Providence Annuities and IRAs?
Visit our website at: www.provassn.com,
call 1.877.857.2284 (toll free), or email: email@example.com