Retirement Planning in Pittsburgh, PA
Enjoy a comfortable retirement by planning well in advance. Because the economy is always changing, it's hard to know how much money is enough and how you should prepare for your "Golden Years." Let Riverfront Financial help you set aside the right amount to suit your needs in the future.
We are here to help you with these important decisions by providing personalized retirement planning in Pittsburgh, PA. It is never too early to start thinking and preparing for retirement. Some of the retirement savings plans available to you may include:
- Traditional IRA
- Roth IRA
- Health Savings Account
- 401(k) or Solo 401(k)
- SEP IRA
- Simple IRA
- 529 College Savings Plan
- Profit Sharing Plan
- Money Purchase Plans
What Is a Roth IRA?
Opening a Roth IRA is an excellent way to save money for retirement. For example, if you are eligible, you can contribute up to $6,000 to a ROTH IRA for the 2020 tax year ($6,500 if you're over 50). With a Roth IRA, you contribute after-tax dollars, which means you do not get a tax deduction for your contribution. Instead, the money you earn grows tax-free, and you pay no tax on withdrawals after you reach the age of 59 1/2. Unlike traditional IRAs, there is no mandatory withdrawal at age 70.
The Importance of Contributing to a 401(k) or 403(b)
Most employers offer their employees a 401(k) or 403(b). The money is withheld through payroll deduction. Some companies contribute a full or partial match on the funds you put into the count with every paycheck. The financial consultants at Riverfront Financial can help you understand your company's current savings plan and choose the best options for you. If you leave your job, you have options contact us to discuss which options are appropriate for you. A 401(k) is usually offered by a for-profit company, while teachers and other employees of nonprofits may be offered a 403(b) instead.
HSA - Another Way to Save for Retirement
The HSA (Health Savings Account) is ideal for those with certain high-deductible health insurance plans. It allows you to save money tax-free. You can withdraw money from your account to pay allowable medical expenses, including copays and items such as eyeglasses. What you don't use for health expenses can be rolled over indefinitely. So, once you reach the age of 65, you can withdraw money for any reason without penalty, but you have to pay income taxes on the money you withdraw.
Other Retirement Savings Options
In addition to the broad outline of retirement savings plans listed above, there are many other types of savings plans that help you prepare for an enjoyable and carefree retirement. All options are having specific funding requirements and tax details, which we explain during our meeting to determine which option is most suitable for you. The following are a few more retirement planning options available:
A sole proprietor sets up an individual 401(k) and makes contributions as the employee and employer.
SEP stands for Simplified Employee Pension. It is used primarily by the self-employed or small business owners. These accounts are easier to set up than a solo 401(k). If the business has employees, the employer must contribute for all who meet certain requirements.
This plan allows small employers (fewer than 100 employees) to set up IRAs with less paperwork. Employers must either match employee contributions or make unmatched contributions.
529 College Savings Plans
Specifically designed for higher education, anyone can open a 529 college savings plan, regardless of how much money they make.