FAQ: Retirement Planning
Q. How Much Can I Contribute To My Retirement Plan?
A: It depends on the type of plan. For a 401(k), each year the IRS reviews and adjusts the maximum contribution limits. By 2021, employees can contribute up to $19,500 to their 401(k) plan. The same contribution limits apply to 403(b) plans and most 457 plans as well as the federal government’s Thrift Savings Plan.
Q. When Do Retirement Plans Need To Be Set Up?
A: As soon as you start earning income! The sooner you start saving, the more you’ll accumulate, thanks to compounding interest. Even if it’s just $50 a month, it adds up over time. But don’t worry if you haven’t started. Our financial advisors can help you make a plan that aligns with your goals.
Q. How Much Should I Save For Retirement Planning?
A: Most professionals recommend an annual retirement savings goal of 10% - 15% of your pre-tax income. However, it all depends on your unique situation and retirement goals. Our financial advisors can help you create a comprehensive retirement plan.
Q. Is A Rollover IRA A Qualified Retirement Plan?
A: No. A qualified retirement plan is an investment plan offered by an employer that qualifies for tax breaks under ERISA guidelines. An IRA is not offered by an employer, therefore it is not technically a qualified plan.
Q. When Is The Best Time To Start Planning For Your Retirement?
A: Now! Ideally, you should start planning for retirement as soon as you start earning regularly. The earlier you start, the easier it will be.
Q. How Can a Retirement Planner Help Me?
A: Whatever your vision of retirement is, diligent, ongoing planning and goal setting are necessary for your retirement to live up to your expectations. Part of that preparation includes IRA rollover and distribution planning, income projection analysis, fixed-income strategies, and qualified plan design and compliance. Landmark Financial works to help you make the most of your employer-sponsored plans, IRAs, and other retirement vehicles to address your income's sustainability during the time when you reward yourself for years of hard work.
