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Smart contributions to retirement plans

Dec 14, 2011, 3 p.m.

A pressing need for enhanced retirement savings planning

The need for making smart retirement plan contributions has reached critical mass. The situation affects every American citizen, yet for those over the age of 55, the need for enhanced retirement savings planning has become a front-burner issue. The time is here. Active participation in some form of subsidiary retirement program is a "Must Do Now" state of affairs.

Moving your retirement savings plan into the realm of personal control

You are the one that pays the price for poor retirement planning decisions. So take control of your funds. Retirement goals revolve around deferment of current income. By utilizing the likes of 401k retirement savings devices, you strive to ensure that a reasonable part of today's salary will be available for future needs. Here are some smart starting points:

SEP IRAs

From the business owner's viewpoint, Simplified Employee Pension plans enable you to provide effective retirement savings planning for yourself and for your employees. This smart IRA plan takes advantage of:

  • Tax-deductible business expenses
  • Tax deferral IRA systems
  • And Flexible input rules.

From the employees point of view SEP IRAs:

  • Make for automated retirement savings planning
  • Result in matching employer deposited funds
  • Enable diversified investments into stocks, bonds, CDs, mutual funds, and variable annuities
  • Provide fairly lax rules concerning early withdrawal costs and penalties

Individual 401k retirement savings plans

Specific to the owner/operator of a small business, this plan provides the owner a means for setting up and contributing to a 401k retirement savings plan. Designed to enable the individual business owner/operator to maximize contributions and tax deductions, the Individual 401k plan permits larger contributions than those enabled via the typical small business retirement savings plan. This smart retirement planning step is also available to the owner/operator's associated business partners and respective spouses.

Catch-up contributions: A smart retirement savings boost for the over 50 group

Designed to help the over-50 group compensate for missed opportunities, Catch-Up Contributions programs enable investors to contribute above and beyond the annual deferral maximum of their current retirement savings plan. It provides a smart investment plan that takes up the slack in your existing 401k savings package. Contribution limits are regulated by each individual plan.

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