As a company that pairs financial service professionals with potential customers, Javelin Marketing generates many leads for its clients with individuals seeking retirement plans. With so many plans available on the market, it often remains easier to hand over the reins to a professional who can help individuals to find the perfect plan for their needs and resources. Below we have compiled a list of some common types of retirement plans on the market today.
1. An Individual Retirement Plan, know as an IRA, serves as an individual account in which a person can contribute up to $4,000 per year (the contribution limit will adjust annually for inflation in $500 increments). Individuals over 50 can increase their contribution limits. Each contribution remains tax deferred until it is withdrawn at retirement.
2. The Roth IRA originated as a result of the Taxpayer Relief Act of 1997. It remains similar to a regular IRA except that the original contribution is not tax deductible. However, following the withdrawal of the money at retirement, the investment earning on the Roth IRA is not taxed.
3. An employer-sponsored 401(k) Plan is typically funded with before-tax salary contributions. Employers will often match employees’ contributions and growth in the account remains tax-deferred until it is withdrawn.
4. A Profit Sharing Plan serves as a retirement plan in which only the employer contributes. The company can contribute and deduct between 0% and 25% of eligible participant’s compensation up to a maximum each year.
5. A SIMPLE Plan remains a type of pension plan for self-employed individuals or employers with 100 or fewer employees. This plan work similarly to a 401(k) plan.
6. An Employee Stock Ownership Plan, or ESOP, offers a contribution plan that involves primary investments in an employer’s stock.
7. A Money Purchase Pension Plan provides a retirement plan that requires fixed annual contributions from the employer to the employee's individual account.
8. An SEO, or Simplified Employee Pension, serves as a retirement plan for self-employed individuals and small businesses. It consists of a group of IRAs, and allows employers to make contributions to their own IRA and to IRAs that their employees set up and control.
1. An Individual Retirement Plan, know as an IRA, serves as an individual account in which a person can contribute up to $4,000 per year (the contribution limit will adjust annually for inflation in $500 increments). Individuals over 50 can increase their contribution limits. Each contribution remains tax deferred until it is withdrawn at retirement.
2. The Roth IRA originated as a result of the Taxpayer Relief Act of 1997. It remains similar to a regular IRA except that the original contribution is not tax deductible. However, following the withdrawal of the money at retirement, the investment earning on the Roth IRA is not taxed.
3. An employer-sponsored 401(k) Plan is typically funded with before-tax salary contributions. Employers will often match employees’ contributions and growth in the account remains tax-deferred until it is withdrawn.
4. A Profit Sharing Plan serves as a retirement plan in which only the employer contributes. The company can contribute and deduct between 0% and 25% of eligible participant’s compensation up to a maximum each year.
5. A SIMPLE Plan remains a type of pension plan for self-employed individuals or employers with 100 or fewer employees. This plan work similarly to a 401(k) plan.
6. An Employee Stock Ownership Plan, or ESOP, offers a contribution plan that involves primary investments in an employer’s stock.
7. A Money Purchase Pension Plan provides a retirement plan that requires fixed annual contributions from the employer to the employee's individual account.
8. An SEO, or Simplified Employee Pension, serves as a retirement plan for self-employed individuals and small businesses. It consists of a group of IRAs, and allows employers to make contributions to their own IRA and to IRAs that their employees set up and control.
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