Retirement Accounts
It's easy to put off planning for retirement, especially if the event is many years away. But the earlier you start planning, the longer and more enjoyable your retirement may be. Through a selection of IRAs, SEPs and SIMPLE Plans with Walnut Capital Management, you can choose a plan that can help meet your retirement needs while investing in stocks, bonds, mutual funds, money markets or government securities.
We can help you choose from these accounts and gain the control you'll need to adjust your investment selections according to changing economic and market conditions or changes in your personal situation.
Traditional IRAs
Introduced in 1974, the Traditional IRA has been a popular vehicle for tax-deferred retirement savings. The benefits of the Traditional IRA include:
- Working individuals and their spouses can each contribute to a Traditional IRA.
- Individual contributions range from $5000 to $6000 annually (for 2010) depending on your age.
- Regardless of your ability to deduct your contributions, any earnings will grow tax-deferred.
- Withdrawals from an IRA are subject to ordinary income tax and may be subject to a federal 10% penalty if taken prior to age 59½.
Roth IRAs
The Roth became available in 1998 and has gained popularity because of its potential for tax-free withdrawals of contributions and earnings. Provisions of the Roth IRA include:
- Contributions are always non-deductible
- Tax-free withdrawals of contributions and earnings may be taken after five years if you are at least age 59½ (certain exceptions may apply).
- Distributions from Roth IRAs are not mandatory during the holder's lifetime.
- Qualified Roth IRA distributions are not subject to state and local taxation in most states.
Rollover IRA
For those individuals who are changing jobs, being severed from employment, or retiring, IRA Rollovers can be ideal. Benefits include:
- Transfer a lump sum directly from your plan account and maintain the tax-deferred status of your retirement assets.
- Continue deferral of taxes on monies accumulated in your former employer's 401(k), 457, 403(b) or other retirement plan.
- Rollover contributions are not subject to the $5000-per-year limits (for 2009) on contributions to regular IRAs.
- Withdrawals from an IRA are subject to ordinary income tax and may be subject to a federal 10% penalty if taken prior to age 59½.
SEP & SIMPLE Plans
Since the introductions of SEP & SIMPLE plans, small and new business owners have many options to help employees save for retirement. Benefits include:
- All company contributions are immediately 100% vested and available to the participants.
- Part-time employees may not be excluded.
- Company contributions are tax-deductible for the employer and neither contributions nor earnings are taxed to participants until distributed.
- Withdrawals from SEP-IRAs and SIMPLE IRAs are subject to ordinary income tax and may be subject to a federal 10% penalty if taken prior to age 59½. For SEP IRAs, the federal penalty increases to 25% if taken during the first two years of plan membership.
Walnut Capital Management Helps You Decide
At Walnut Capital Management we understand the importance of your retirement planning decisions. Maximizing the value of your savings can help make your dreams for retirement a reality. We offer a wide selection of retirement-planning services and can assist you in examining your personal situation to help you choose a Retirement Account that is appropriate for you. Contact Walnut Capital Management today for a complimentary consultation. We look forward to working with you.
Walnut Capital Management and Wells Fargo Advisors Financial Network do not provide tax advice.