Taxpayer Relief Act of 1997 (TRA 97) introduced an array of new
IRA choices for Retirement Planning. TRA 97 also increased the income
limits for tax-deductible contributions, which means that more people
will now be able to benefit from tax-deductible contributions. After
contributing the maximum allowable to your company-sponsored retirement
plan, establishing an IRA can go a long way toward meeting your
retirement income needs. If you or your spouse do not have a retirement
plan at work, an IRA may be your only opportunity to save tax-deferred
money and receive compounded investment earnings year after year
and after paying taxes on the investment growth.
This tax-deferred compounding benefit is the key to an IRA's building
power. And, with a Roth IRA, you have the opportunity to enjoy tax-free
growth. These new and improved IRA options can be confusing. And
choosing the right one may make a big difference to your future
financial security in retirement.
The Roth IRA is the most flexible IRA yet. You can withdraw contributions
for college, home down payments, expenses related to a disability
or anything you feel like. However, you will generally have to wait
five years to withdraw conversion contributions from traditional
IRAs. Unfortunately, everyone is not eligible to open a Roth IRA.
Unlike traditional IRAs (both tax-deductible and non- deductible),
withdrawals from Roth IRAs after age 59 1/2 are not generally taxed.
You pay your taxes on the front end by contributing after-tax dollars.
Roth IRAs enable savers who remain in the same income tax bracket
at retirement to accumulate more money than even tax-deductible
Retirement plans and pensions- and even profit sharing plans- are
no longer reserved for large corporations. Small businesses now
have the opportunity to enjoy many of the benefits of these plans,
such as retirement savings, tax advantages and the enhanced ability
to attract and reward top- quality employees. No Pension Plan? You
probably have your reasons. After all, you are a business owner,
not an accountant. Who has time to study tax laws? Like any successful
company, your business is changing all of the time. It is difficult
to keep up, but you know your employees would greatly appreciate
the security they could earn with a company-sponsored retirement
plan. You also want a plan that will let you keep the most money
Pension Plans can help businesses attract and retain high quality
employees. Companies can choose from a variety of alternatives to
develop an employee pension plan that meets their budget and helps
attract and retain top-notch employees. Of these choices, many employers
choose to offer one of the following four plans:
* Traditional Defined Contribution Plan
* 4O1K Plan
* SIMPLE IRA
These plans were designed to enable companies of all sizes to develop
a pension plan that meets its goals and resources.
* are NOT deposits Insured by the FDIC or any federal government
* are NOT obligations of Peoples-Webster County Bank.
* are NOT guaranteed by Peoples-Webster County Bank.
* may lose value.
NOTICE: The bank is not responsible
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information or graphics of the web sites that have links
here. Please contact us at (402) 746-2251 with any concerns