Rolling over your 401k or IRA

Does Your Retirement Plan Fit Your Needs?

Have you identified your retirement goals? Your routine expenses? Have you allocated for large expenses like vacations, large anniversary parties or your children's wedding? Our Financial Advisors are specially trained to identify these needs with you, to help you analyze the specific and safe amount you'll need saved to maintain your lifestyle and feel secure in your retirement. Contact us for a FREE educational meeting where we will evaluate your retirement needs based on our 25-Point Investment Plan Checkup: 866-790-9700 or email info@sovereignga.com

Traditional IRA

Tax deductible contributions can be made with earnings and gains being tax deferred until withdrawn at the allowable age. There is a 10% penalty applied if money is withdrawn before the allowable age is reached. Allowable age is 59.5 years; with most people beginning their withdrawals at 70 years of age. No contributions can be made once the account holder has reached 70.5 years of age. The 2016 yearly contribution limit is $5,500 for those under 55 and $6,500 for those over. 

SEP IRA

Potentially ideal for self-employed individuals, freelancers, independent contractors, and small business owners. These accounts are set up by the business for the employee. The employer makes all of the contributions, and the employee does not have to contribute at all. SEP IRAs allow for much larger contributions: $53,000 for 2016 or 25 percent of your net income.

Roth IRA

Very similar to Traditional IRAs, with age limits, and contribution limits being the same. However, if you make above a certain income you cannot participate in a Roth IRA. The main difference being that contributions are made up of taxed income and so withdrawals will not be subject to income tax. However, the 10% penalty still exists if withdrawn before age 59.5. Additionally there is no age cap on contributions like a Traditional IRA.

401K

Tax deductible contributions can be made with earnings and gains being tax deferred until withdrawn at allowable age. There is a 10% penalty applied if money is withdrawn before the age limit is reached. Allowable age is 59.5 years; with most people beginning their withdrawals at 70.5 years of age, and no contributions can be made once the account holder has reached 70.5 years of age. The 2016 yearly contribution limit is $5,500 for those under 55 and $6,500 for those over. 

Subscribe to our Free Newsletter and
stay up to date with more information
on rolling over your 401k or IRA.

Contact us: 866.790.9700

Securities and investment advisory services are offered through Sovereign Global Advisors, Registered Investment Advisor and members of FINRA and SIPC

Check the background of this firm on BrokerCheck.com