I. Pension & Election Options
- Defined Benefit
- Employer Contribution
- Require Defined Benefit Pensions, income to be paid over a period of time such as:
- Life Only
- Life with Joint Survivor
- Life with Minimum Period Certain
II. Traditional IRA
- Tax-Deductible Contribution
- Tax-Deferred Growth
- $5,500 Maximum Contribution through age 49
- $6,500 Maximum Contribution ages 50 – 70
- 10% Penalty for Withdrawals before age 59 1/2
- Required Minimum Distributions Required April 1st in the years following age 70 1/2
III. Roth IRA
- Contributions are not Tax-Deductible
- $5,500 Maximum Contribution through age 49
- $6,500 Maximum Contribution ages 50 – 70
- Tax-Free Withdrawals after age 59 1/2 [10% IRS Penalty for Withdrawals before 59 1/2]
IV. 401k, Simple IRA, SEP
- Defined Contribution Plan
- Generally, includes Employer & Employee Contributions
- Allows for access of partial or lump sums of money to be taken out or rolled over into an IRA.
- Income level could limit the amount of the contribution – check with your tax advisor.
VI. Tax-Free Income