Facebook-f Twitter Linkedin-in Youtube Phone
Facebook-f Twitter Linkedin-in Youtube

These Accounts Are Your Retirement Pillars

These Accounts Are Your Retirement Pillars Hilltop Wealth Solutions

Throughout your life, you’ve probably built up numerous pension plans, and you’ve likely given thought to numerous retirement tactics. The key now, if you have recently retired or you are about to retire, is to start putting those pillars together to form a complete structure of what you have and find out what you may need going forward.

The 401(k)

The 401(k) is the most typical type of retirement account that is established between an employer and an employee. This account is comprised of stocks, bonds, mutual funds, and other investments that are funded with contributions from both parties. The funds in the 401(k) are not subject to taxation until they are taken from the paycheck, which can be advantageous depending on the individual’s financial circumstances.

You can withdraw your money from a 401(k) account at any time, but if you withdraw before you are age 59 ½, the withdrawal is subject to a 10% penalty tax in addition to your normal tax obligation at the time of withdrawal.[1]

The Traditional IRA

An Individual Retirement Account, or IRA, can be opened with any reputable financial institution. There are annual limits on how much you can deposit into your IRA, but you have the freedom to decide how much to contribute and when to make your payments. As with a 401(k), the contributions to a traditional IRA are tax-deferred, meaning that the taxes owed won’t be collected until you make a withdrawal from the account.[2]

The Roth 401(k)

Contributions to a Roth 401(k) are made from the employee’s payroll, just like a traditional 401(k). The major distinction between the two is that the Roth version is taxed at the time of deposit, yet no taxes are due when the funds are withdrawn during qualified retirement age.[3]

The Roth IRA

Much like a Traditional IRA, a Roth IRA is an individual account that can be opened through a financial provider. Both have yearly contribution limits and the same flexible options. However, the main distinction between the two is that contributions to a Roth IRA are taxed upon entering the account but not upon withdrawal.

The Pension

When an employer provides a pension to an employee, they commit to supplying them with a regular monthly income after they retire. The sum that the individual will get is calculated based on numerous factors, primarily their last average salary and the period of time they were employed at the organization.[4]

Conclusion

As you can tell, taxes are a major part of retirement planning, and often making the right choice for your retirement involves being savvy about which tax-advantaged retirement savings vehicles to use. If you’re looking for advice on how to manage your accounts and which accounts might be right for you, contact us for a complimentary review of your finances.

 

Hilltop Wealth Solutions (“Hilltop”) is a registered investment advisor with the Securities and Exchange Commission (“SEC”) and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration does not imply a certain level of skill or training. Please refer to our Form ADV Part 2A disclosure and Client Relationship Summary (Form CRS) for additional information regarding the qualifications and business practices of Hilltop. Hilltop Wealth Solutions, LLC is an SEC Registered Investment Adviser firm. Hilltop Tax Solutions, LLC, is an affiliate of Hilltop. Wealth Solutions that provides tax and bookkeeping services.
Archived Posts
Share This Post!
Facebook
Twitter
LinkedIn

© 2022 Hilltop Wealth and Tax Solutions

Website Disclosures

Hilltop Wealth Solutions (“Company”) is an SEC registered investment adviser located in Mishawaka, IN with branch office located in MI and other locations throughout IN.  The Company may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements.  The Company’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links.  Accordingly, the publication of the Company’s web site on the Internet should not be construed by any consumer and/or prospective client as the Company’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.  Any subsequent, direct communication by the Company with a prospective client shall be conducted by a representative that is either registered or qualified for an exemption or exclusion from registration in the state where the prospective client resides.  For information pertaining to the registration status of the Company, please contact the SEC or the state securities regulators for those states in which the Company maintains a notice filing.  A copy of the Company’s current written disclosure statement discussing Company business operations, services, and fees is available by going online via the SEC’s Investment Advisers Public Disclosure (IAPD) database at www.adviserinfo.sec.gov, using SEC #801-115255.

The Company does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to the Company web site or incorporated herein and takes no responsibility, therefore.  All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by the Company, will be profitable or equal any historical performance level(s).

Certain portions of Company web site (i.e. newsletters, articles, commentaries, etc.) may contain a discussion of, and/or provide access to, the Company (and those of other investment and noninvestment professionals) positions and/or recommendations as of a specific prior date.  Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s).  Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from the Company, or from any other investment professional.

The Company is neither an attorney nor an accountant, and no portion of the web site content should be interpreted as legal, accounting or tax advice.

Rankings and/or recognition by unaffiliated rating services and/or publications should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if the Company is engaged, or continues to be engaged, to provide investment advisory services, nor should it be construed as a current or past endorsement of the Company by any of its clients.  Rankings published by magazines and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser.  Rankings are generally limited to participating advisers.

To the extent that any client or prospective client utilizes any economic calculator or similar interactive device contained within or linked to the Company web site, the client and/or prospective client acknowledges and understands that the information resulting from the use of any such calculator/device, is not, and should not be construed, in any manner whatsoever, as the receipt of, or a substitute for, personalized individual advice from the Company, or from any other investment professional.

Each client and prospective client agrees, as a condition precedent to his/her/its access to the Company web site, to release and hold harmless the Company, its officers, directors, owners, employees and agents from any and all adverse consequences resulting from any of his/her/its actions and/or omissions which are independent of his/her/its receipt of personalized individual advice from the Company.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Client Login
Contact Us