In Florida, retirement plans provide extra income for individuals 65 and older. The benefits of each plan vary, and some plans are available through employers. A financial advisor shows consumers which plans give them the most return on their investment. Hiring a Retirement Plans Advisor Miami FL eliminates the guesswork and helps consumers get the most out of the plans.
401(K) Retirement Plans
The 401(k) retirement plans are provided through the consumer’s employer. The consumer doesn’t have to worry about the accounts or making deposits. All funds are transferred from the consumer’s wages into the plans. Adjustments or increases in contributions are made prior to the next pay period. The plans allow the consumer to save up to $18,000 of their wages according to their income and age.
What is a Solo 401(K)?
The solo 401(k) plans are used by sole proprietors who want to start a retirement plan. The accounts are used as either an employer or employer based on the individual’s preferences. Contributions are restricted to a maximum of $53,000 annually.
What is an IRA?
An individual retirement account restricts deposits to $5,000. All funds are tax-free when transferred to plan. Any withdrawals from the account are taxed and deductions are based on the individual’s income level. Typically, taxpayers who earn over $71,000 aren’t allowed to deduct their contributions and must claim the funds as taxable income. However, exceptions are made if the consumer doesn’t have a retirement plan through their employer.
Health Savings Accounts
Health savings accounts are set up to cover future medical expenses after retirement. Age restrictions apply to the total amount contributed each year. For example, a consumer who is 55 can contribute over $4,350 if they are single. Whereas, a younger consumer is limited to $3,350 each year. Individuals who are at least 65 withdraw funds from the account without penalties.
In Florida, retirement plans impose restrictions, but they offer exceptional benefits. The age at which the individual retires establishes when the funds are available. Select plans allow the consumer to borrow money as needed. Consumers who want to hire a Retirement Plans Advisor Miami FL are encouraged to contact and set up an appointment now.
