Retirement Options Retirement OptionsWe offer access to a broad range of retirement options that are tailored to each individual or family. These strategies include but are not limited to:Individual Retirement AccountsOne of the most popular and common retirement plans, IRA’s allow you to invest a portion of your yearly earnings tax deferred. This means the money you invest in an IRA grows without taxes being owed until you withdraw the funds. In addition, you may be able to take a deduction for the amount you put into an IRA each year. The contribution limit for IRA’s in 2017 are $5,500 for individuals with an additional catch up provision of $1,000 if you are over 50 years old. Distributions made prior to age 59 ½ may be subject to a federal income tax penalty of 10% in addition to current income tax. Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal.Roth IRA’sRoth IRAs are similar to traditional IRAs, but the money you contribute is taxed differently. You aren’t allowed to deduct your contributions from your yearly income taxes, but, as long as you leave the money in the account for at least five years and are 59 ½ when you withdraw it, you pay no taxes on the money you withdraw. Not only will you enjoy the tax free withdrawals of a Roth IRA, so too will the beneficiaries you name. In addition, you can also convert money from a Traditional IRA to a Roth IRA during your lifetime. We work to determine first if our clients qualify for this conversion and then advise them on how much to convert each year. Distributions made prior to age 59 ½ may be subject to a federal income tax penalty. If converting a traditional IRA to a Roth IRA, you will owe ordinary income taxes on any previously deducted traditional IRA contributions and on all earnings. Traditional IRA account owners should consider the tax ramifications, age and income restrictions in regards to executing a conversion from a Traditional IRA to a Roth IRA.The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.401(k)s401(k)s (named after the section of the tax code that deals with them) are retirement savings plans sponsored by employers. They allow you to contribute a portion of your income to an investment account. (Most contributions are made before taxes. Some plans allow you to contribute after tax income as well). You have a certain amount of discretion in choosing which investments to hold within your account. Many employers match their employees’ contributions and some companies are now offering a Roth 401(k). In 2017 the employee contribution limit will be $18,000 (or $24,000 if you’re over 50). Distributions received before age 59 ½ are subject to an early distribution penalty of 10% additional tax unless an exception applies.403(b)s403(b)s are similar to 401(k)s, but designed for employees of non-profit organizations, such as charities, colleges or churches. These employers often don’t make matching contributions. 403(b)s also sometimes allow you to make “make up” contributions if you failed to contribute the maximum amount allowed for a previous year. Most of the rules are the same as those that govern a for profit company.