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Benefits of the 403 B Retirement Plan

Mariah Estefan — Thu, 10 Dec 2009 08:55:01 +0000

The benefits of the 403 b retirement plan are that they are among the most flexible retirement plans out there. You can add after tax contributions, Roth contributions, and you can even transfer them into an IRA fund under certain conditions.

Like a 301 K plan, the 403 B plan is a deferred compensation plan. In the 401 K plan lets you contribute about $15,500 of your personal earnings up to age 50 and $20,500 if you are age 50 and above.

Your employer may normally match a percent of whatever you contribute. As far as taxes, you aren’t taxed on your contributions until you receive distributions normally at retirement time. If you withdraw early from these plans, you usually will have to accept a steep penalty in the form of interest. Therefore, it’s best to avoid withdrawing unless you absolutely need to.

Your Spending Determines Your Retirement

Tue, 16 Jun 2009 07:31:37 +0000

How you choose to spend your money today will determine how you will live during your retirement years. Do you spend your money on things that will go down in value or up in value? Do you buy out of impulse or out of necessity? We all want to have nice things but realize that if you really can’t afford it, you will only be hurting yourself down the line. Having the discipline to actually save your money and invest it month after month, year after year, will make all the difference in how you will live down the line. It’s easy to put off planning for retirement especially if it’s so far way, but you will need time on your side to make the chance of retiring well possible. The closer you are to retirement, the less chance you have to retire wealthy, but you can at least retire comfortably if you set things up correctly.

Roth IRA Catch Up

Mariah Estefan — Sat, 06 Jun 2009 02:23:41 +0000

If you are looking to open a Roth IRA, it’s good to first know the limitations and requirements involved.

Aside from the contribution limits, another limitation stipulated under the Roth IRA is the restrictions on your income. You can only become eligible to have a Roth IRA account if you satisfy the income limitations. If you are a single filer, you can make full contribution if your compensation yearly is up to $105,000 while you can carry out partial contributions if your income is up to $105,000 – $120,000. For joint filers, their income should fall beneath $166,000 for full contribution and in between $166,000 – $176,000 to complete partial contributions. Those who are married but are filing separately, their income should be $0.00 to be eligible for full contribution and $0.00 – $10,000 for partial contributions.

If you have missed some years or months with investing into your IRA, you can use a Roth IRA catch up to your advantage. By taking advatange of this catch up option, you can make up for some missed investment time.