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Retirement planning is crucial to determining the type of life you want to live after your working years are over. FFC Capital leverages years of experience working with public pension plans and large endowments and applies the same level of attention whether your retirement plan is $100K or $100M. There are many benefits to having a retirement account including: savings, investments, tax advantages, and more. If you need to start a retirement plan or revisit an existing one, we can help implement a strategy that will enable you to retire confidently.  

Individual Retirement Accounts

An individual retirement arrangement (IRA) is a personal retirement savings plan that offers specific tax benefits. In fact, IRAs are one of the most powerful retirement savings tools available to you. Even if you're contributing to a 401(k) or other plan at work, you should also consider investing in an IRA.

What types of IRAs are available?

There are two types of IRAs: traditional IRAs and Roth IRAs. Both allow you to make annual contributions of up to $5,500. Generally, you must have at least as much taxable compensation as the amount of your IRA contribution.

Traditional IRA
A traditional IRA allows anyone with earned income who is under age 70½ to contribute. However, your ability to deduct traditional IRA contributions will depend on your annual income, your filing status, and whether you or your spouse is covered by an employer-sponsored plan. Beginning at age 70½, you must begin to take annual distributions from a traditional IRA.

Roth IRA
With a Roth IRA, no age limitation applies to contributions. As long as you have taxable compensation and qualify, you can contribute to a Roth IRA even after age 70½. However, your ability to contribute and the amount you'll be able to contribute (up to the annual limit) will depend on your income and tax filing status. Although Roth IRA contributions are not tax deductible, Roth IRAs have other advantages. You're not required to take distributions from a Roth IRA at any age, which gives you more estate planning options. Another key strength: Qualified withdrawals will avoid both income tax and the early withdrawal penalty if certain conditions are met. Nonqualified withdrawals will be taxed and penalized only on the earnings portion of the withdrawal, since the principal is your own after-tax money.

Plans for Business Owners

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Offering a retirement plan to your employees may allow you attract and retain talent while decreasing the amount of taxes you owe. We can create a retirement policy and continuously educate your team to help you reach your business goals.

401(k) plan
A 401(k) plan, is a defined contribution retirement plan that allows employees to elect either to receive their compensation paid currently in cash or to defer receipt of the income until retirement. If deferred, the amount deferred is pretax dollars that go into the plan's trust fund; these dollars will be invested and then eventually be distributed (with investment earnings) to the employees. The employee is taxed when money is withdrawn or distributed to him or her from the plan. The business can deduct employer contributions, subject to certain limitations. 

Keogh plan
A Keogh plan is another name for any qualified retirement plan adopted by self-employed individuals. Only a sole proprietor or a partner may establish a Keogh plan; an employee cannot. Keogh plans may be set up either as defined benefit plans or as defined contribution plans. A Keogh plan allows you to contribute pretax dollars to the retirement plan (providing a tax deferral to you).

Profit-sharing plan
A profit-sharing plan is a defined contribution plan that allows for employer discretion in determining the level of annual contributions to the retirement plan; in fact, the employer can contribute nothing at all in a given year if it so chooses. As the name suggests, a profit-sharing plan is usually a sharing of profits that may fluctuate from year to year.

SIMPLE 401(k)
A savings incentive match plan for employees 401(k), or SIMPLE 401(k), is a retirement plan for small businesses (those with 100 or fewer employees) and for self-employed persons, sole proprietorships, and partnerships. The plan is structured as a 401(k) cash or deferred arrangement and was devised in an effort to offer self-employed persons and small businesses a tax-deferred retirement plan without the complexity and expense of the traditional 401(k) plan. The SIMPLE 401(k) is funded with voluntary employee pre-tax or Roth contributions, and mandatory, fully vested, employer contributions. The annual allowable contribution amount is lower than the annual contribution amount for regular 401(k) plans.

SIMPLE IRA
A savings incentive match plan for employees IRA (SIMPLE IRA) is a retirement plan for small businesses (those with 100 or fewer employees) and self-employed persons that is established in the form of employee-owned individual retirement accounts. The SIMPLE IRA is funded with voluntary employee pre-tax contributions and mandatory, fully vested, employer contributions. The annual allowable contribution amount is significantly higher than the annual contribution amount for regular IRAs.

Simplified employee pension plan (SEP)
Self-employed persons, including sole proprietors and partners, can sometimes set up simplified employee pension plans (SEPs) for themselves and their employees. A SEP is a tax-deferred qualified retirement savings plan that allows contributions to be made to special IRAs, called SEP-IRAs, according to a specific formula. Employer contributions are fully vested.

Please contact FFC Capital Markets to obtain more information on any one of these retirement plans. 

*the in
formation on this page does not constitute as investment advice.*

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FRANCIS FINANCIAL GROUP, LLC DBA FFC CAPITAL MANAGEMENT.

INVESTMENT, FINANCIAL AND MUNICIPAL ADVISORS.

SECURITIES OFFERED THROUGH FFC CAPITAL ADVISORS, LLC.

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