Retirement plan investing is a way to help you pursue your long-term financial goals, whether you are running a business or taking care of your own personal needs. At Washington Financial Wealth Management Services, we offer access to a wide range of retirement plan investments for establishing a plan for your employees or for your personal retirement needs.
Business Retirement Plans
Once your business is going, the next step is to build a retirement plan. Retirement plans can provide many benefits and setting one up doesn’t have to be difficult.
Depending on the business plan selected, contributions for you and your employees can be made by just the owner, just the employees, or by both. This gives both you and your employees an opportunity to accumulate the funds needed for retirement. Washington Financial Wealth Management Services offers guidance in many different plans including:
- SEP Plans
- Simple IRAs Plans
- Profit Sharing Plans
- 401(k) Plans
Remember, contributions made to a plan, as well as some of the expenses associated with the plan, are tax-deductible expenses for your business and may not be subject to FICA taxes. This potential reduction in tax liability can be sizable. Also, contributions to business retirement plans enjoy tax-deferred growth.
A good retirement plan will help you attract and maintain a stable work force, which can be a big challenge to many businesses. Employees typically consider a retirement plan at work a key benefit, and this can be a major factor when they are considering employment offers.
Personal Retirement Plans
It is never too soon to consider plans for retirement. For many, tax efficient individual retirement accounts (IRAs) are smart strategies, especially with the new current tax laws.
Washington Financial Wealth Management Services offers both Roth and Traditional IRAs, and the experienced team can quickly help you select the right account for you. In most cases, we will have the plan setup within minutes.
Some IRAs have contribution limitations and tax consequences for early withdrawals. Distributions from traditional IRAs and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10% IRS tax penalty. For complete details, consult your tax advisor or attorney. A Roth IRA offers tax free withdrawals on taxable contributions. To qualify for the tax-free and penalty-free withdrawal of earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59½ or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes.